Accounting Question

Learning Goal: I’m working on a accounting question and need guidance to help me learn.

Assignment 3

Q.1- Mr. A and Mrs. B are married and have two dependent children. X & Y, They also fully support Mrs. B’s mother who lives with them and has no income. Their 2012 tax and other related information is as follows: (2.5 marks)


Particulars Amount in $
Value of premiums for $ 100000 of group term life insurance provided by employer 2,000
Gift from A’S parents 60,000
Dividend income—from ABC stock, 8,000
Loan from A’S parents 20,000
Total salaries 640,000
Bank account interest income 14,000
Gain from the sale of qualified small business stock acquired in 2010 60,000
Total itemized deductions 64,000
Municipal bond interest income 6,000
Value of employer provided medical insurance 22,000

Required: Compute Mr. A and Mrs.B Taxable income. (Show all calculations in proper /good form.)



Q.2- Mr. Abdullah’s medical and personal expenses include the following: (2.5 mark)

Particulars Amount in $
Prescription drugs 2,400
Eyeglasses 1,400
Doctors’ fees 8,000
Hospital fees 13,400
Food for personal use (expenses) 4,000
Travel allowances 10,000
General purpose vitamins 400
Medical premiums 43,400
Visitors fees 2,000
Recreation fees 5,000
Club fess 2,000

Abdullah’s AGI for the year is $ 132,000. He is single and age 56. Insurance company reimburses none of the medical costs and other related items.

After considering the AGI floor, what will be Abdullah’s medical expense deduction?


Q.3 In the year 2013, PQR Corporation had the following items of income, expense, gains, and losses: (2 mark)

Particulars Amount in $
Sales 2,000,000
Account payable 600,000
Interest on savings account 56,000
Plant & Machinery 600,000
Equipment 300,000
Operating expenses 400,000
Furniture and Fixture 400,000
Gain on sale of AT&T stock 24,000
Loss on sale of IBM stock 60,000
Building 400,000
Motor vehicle 200,000
Cost of sales 1,080,000

What is taxable income of PQR Corporation’s for the year?

Answer: –

Q-4-To make income taxable, income must be realized and recognized. Explain in your own words the difference between income realization and income recognition, and then provide a short numerical example to indicate the difference (Don’t copy the same numerical example from other students. Numerical example must be differ). (2 mark)


Q5. If a NOL (net operating loss) is incurred, when would a taxpayer elect to forgo the carryback period and only carry the loss deduction forward? (1 marks)

Essay Help
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.