Kevin transferred $4,000,000 to a GRAT naming his four children as the remainder beneficiaries. Kevin retained an annuity from the GRAT valued at $1,500,000. If this is his only transfer during the year, what is Kevin’s total taxable gifts for the year? $1,444,000. $1,500,000. $2,440,000. $2,500,000
5. As a senior engineer for a large consulting firm, Kevin earned $249,000 last year. Kevin Is married to Julia and they have 6 children. Julia had no income (because she is caring for their lovely children). They have itemized deductions of $9,700. What percent of their income (effective federal tax rate) is paid in federal taxes? 2 4a000 xl0100 A) 5% B) 10% 15% D) 20%
5. As a senior engineer for a large consulting firm, Kevin earned $249,000...
Kate and Kevin are shareholders of Sernett’s, a highly successful chain of stores. Kevin owns 12% of the outstanding shares while Kate owns 14%. Neither wants to lose their ownership proportion when Sernett’s issues new shares. The mechanism to protect their voting strength is stock certificates. dividends rights. preemptive rights. stock warrants.
Kevin forms Kelly Corp. (C corp.) to manufacture and sell machine parts. Kevin obtains loan from “Your kind neighborhood Bank” for $ 1million @ 10%. Kelly Corp’s debt equity ratio is 4:1. For the year ended 12/31/2019, Kevin expects the business to generate NPBIT (Net Profit before Interest and Tax) of $200,000. How much of bank interest is deductible on the tax return of Kelly Corp. for year 2019? Assume no other interest income for the business. Please justify your...
Kevin purchased a gift shop from Jeff. While seeking insurance for his store, Kevin failed to reveal plans to build a small café with a kitchen. An electrician improperly wired an outlet, which resulted in a fire. Kevin subsequently files a claim with the insurer. Which of the following is FALSE? A. The insurer can deny the claim on the grounds of material concealment . B. If the insurer pays Kevin’s claim then they have the right to subrogate against...
3. Kevin and Lori formed Wonderful Inc., a C-Corporation. Kevin transfers land (FMv $250,000 and adjusted basis of 90,000) for 50% of the stock in the corporation and $20,000 cash. Lori transfers equipment (FMV 30,000 adjusted basis of $5,000) and will provide management services worth $200,000 after wonderful Inc. opens for 50% of the stock in the corporation. (7 points) a. Will the transfer qualify under $351 as a tax free transfer? Explain. b. What are the tax consequences to...
1) Find Io in the circuit 2 V 2 mA Io
Kevin, a 54-year-old personal trainer hears a bee uzzing around his gym. Kevin anxiously opens the windows and doors in hopes the bee will fly out. Kevin mentions he has a severe allergy to bee venom and carries an EpiPen in the event he is stung. 1. Which hypersensitivity (I, II, III or IV) does Kevin suffer from? (1p) 2. Explain what happens to the immune system upon the first exposure (first bee sting) to bee venom. For full credit,...
1. If i() shown below is applied to the circuit below, determine io (0. Ai(t) io(t) 0.5F i(t)
1. If i() shown below is applied to the circuit below, determine io (0. Ai(t) io(t) 0.5F i(t)
Kevin transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin’s stock, worth $300,000, and a 10-year note. The note was executed by Robin Corp. and made payable to Kevin in the amount of $200,000. Because of the transfer: a. Kevin does not recognize gain. b. Kevin recognizes gain of $400,000. c. Robin Corporation has a basis of $100,000 in the land. d. Robin Corporation has a basis of $300,000 in the...