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7 November, 20:05

Susan's salary is $44,000 and she received dividends of $600. She received a statement from SJ partnership indicating that her share of the partnership's income was $4,000. The partnership distributed $1,000 to her during the year and $600 after year-end. She won $2,000 in the state lottery and spent $50 on lottery tickets.

Requirement

Which amounts are taxable? (Complete all answer boxes.)

a. Salary, $44,000 (Yes/No)

b. Dividends received, $600 (Yes/No)

c. Share of partnership income, $4,000 (Yes/No)

d. Partnership distribution in the current year, $1,000 (Yes/No)

e. Partnership distribution in the following year, $600 (Yes/No)

f. State lottery winnings of $2,000 (Yes/No)

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Answers (2)
  1. 7 November, 21:44
    0
    a. Yes b. Yes c. Yes d. No e. No f. yes

    Explanation:

    Taxable income is the amount of an individual's income that is used to calculate taxes owed in a year. it includes salaries, bonuses, tips, investment income and unearned income

    We will identify which amounts are taxable below

    a. Salary (yes)

    b. Dividends received (yes)

    c. Share of partnership (yes)

    d. Partnership distribution in the current year (yes)

    e. partnership distribution in the following year

    f. State lottery winnings (yes)
  2. 7 November, 23:23
    0
    Income Tax is referred to as the amount of money an individual is required to report and remit to the tax agencies for earning revenues. Also, it is the federal government's share from the individual's earnings which would be used for their public works projects such as building railways and sewage treatment.

    The following amounts are taxable and not.

    a. Salary, $44,000 (Yes)

    b. Dividends received, $600 (Yes)

    c. Share of partnership income, $4,000 (Yes)

    d. Partnership distribution in the current year, $1,000 (No)

    e. Partnership distribution in the following year, $600 (No)

    f. State lottery winnings of $2,000 (Yes)
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