Question

. For each of the following independent situations, determine the amount, if any, that the taxpayer must recognize in 2019.

a. Ross filed his tax return, properly claiming single filing status. His employer paid or provided the following to Ross:

       Wages                                                                                       $58,500

       Fair market value of qualified dependent care services                        4,800

       Premiums for $45,000 qualified group term life insurance                   1,300

       Medical insurance premiums paid by employer                                     900

What is the amount, if any, that will be included in gross income in 2019?

cutting things of for is cut off and recognize is cut off

Answer 1

Requirement (a)
Date	Accounts Title and Explaination	Debit	Credit
Mar-09	Treasury Stock	$ 3,14,400.00
	Cash		$ 3,14,400.00
	(To Record reacquired common stock)
Jun-09	Cash	$ 2,07,500.00
	Treasury Stock		$ 1,99,200.00
	Paid in capital from sale of treasury stock		$      8,300.00
	(To Record sale reacquired common stock)
Nov-13	Cash	$     83,700.00
	Treasury Stock		$    74,400.00
	Paid in capital from sale of treasury stock		$      9,300.00
	(To Record sale reacquired common stock)
Requirement (b)
Balance in Paid in capital from sale of treasury stock on Dec 31			$17,600.00
($8300+$9300)
Requirement (C.)
Balance in treasury stock on Dec 31			$40,800.00
(13100-8300-3100)*$24
Requirement (d.)
Balance in Treasury stock is reported as deduction from Total of paid in capital
and Retained earnings