COMPREHENSIVE TAX RETURN PROBLEM

question 28

Essay

COMPREHENSIVE TAX RETURN PROBLEM.Your cousin,Antonia,who is 30 years old,single and a restaurant manager,heard that you have enrolled in the Masters of Taxation program at State University.She has asked you for help in preparing her 2016 tax return and provides you with the following information:
Note:
[1] Antonia kept the award from the United Way.
[2] Benefits paid by the employer.
[3] Antonia borrowed $12,000 and used the proceeds to purchase a new car.
[4] The original cost of the clothes were $480 and the current FMV is $200
[5] Of the $888 in expenses,$180 are for meals and entertainment.
Compute Antonia's: adjusted gross income,taxable income,and tax liability.

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Definitions:

Intangible Asset

An intangible asset is a non-physical asset possessed by a company, such as patents, trademarks, and goodwill, that can produce future economic benefits.

Impairment

This term refers to a permanent reduction in the value of a company's asset, typically as a result of a change in market conditions or damage to the asset.

Legal Factors

Elements of the law that influence or affect business operations and strategy, including regulations, compliance issues, and legal disputes.

Economic Factors

These are variables and conditions that affect the economic performance of markets and businesses, such as inflation rates, unemployment levels, and interest rates.