(4 points) Total depreciation – A hotel purchased a new office desk on April 15, 2022 and new executive style chairs for the office on August 5, 2022. The office desk cost $1,200 and the chairs cost $2,400. Determine the total depreciation amount for 2024 assuming the taxpayer opted out of Sec. 179 and bonus (if available) in the year of purchase. In addition, assume all taxpayers use a calendar year tax period and that the property mentioned was the only property purchased in the year of acquisition. Use the appropriate depreciation table from your note sheet/textbook where necessary.

(4 points) Total depreciation – An accounting firm bought an office building on October 15, 2019, which cost $710,000. Determine the total depreciation amount for 2024 assuming the taxpayer opted out of Sec. 179 and bonus (if available) in the year of purchase. In addition, assume all taxpayers use a calendar year tax period and that the property mentioned was the only property purchased in the year of acquisition. Use the appropriate depreciation table from your note sheet/textbook where necessary.

Use the following tax structure to answer Part 1 and Part 2. Taxpayer Taxable Income Total Tax Chandler $80,000 $25,000 Monica $60,000 $25,000 Phoebe $35,000 $25,000 Joey $35,000 ? Rachel $60,000 $25,000 Ross $80,000 $25,000   For this system to be fair in terms of horizontal equity, how much tax should the tax system require Joey to pay? (4 points)

(3 points) Travis is single and works for Delta airlines as an accountant. For 2024, they paid him $117,500 in salary. In addition, Delta paid $7,800 for their portion of his medical and dental health insurance premiums, paid $570 for a group term life insurance policy for him, and paid $580 in employer contributions to his 401K. In addition to the above benefits he received during 2024 Travis had a number of major costs throughout the year. He paid $8,300 in mortgage interest on his personal residence and $2,800 in real estate taxes for the year. In addition, he paid $1,950 in professional dues (the AICPA dues, state CPA society dues, and local CPA chapter dues) and subscriptions to work publications that were not covered by his employer. Ignoring your answer in Parts 1 or 2 and instead assuming the total amount of itemized deductions Travis could claim was $19,050, will Travis choose to itemize or take the standard deduction?

Determining Gross Income (4 points): Stewart works for Toyota and earns a $48,200 salary each year. On the first day of 2024, his employer sold him an SUV at the same price it normally charges its customers, $41,500. Stewart purchased the car from Toyota with $12,050 in cash and a $29,450 car loan from Toyota’s Financial Services (TFS). Normally, TFS charges customers a 6.00% interest rate on car loans. However, because he was an employee, they gave him the loan charging only 2.00% interest rate instead, which he paid all throughout 2024. Determine the total recognizable gross income for Stewart in 2024.

Determining Gross Income (4 points): Marta and her ex-husband Robbie divorced in 2023. Since then, Marta has maintained custody over their son Michael, who is 14. Before the start of 2024, Robbie moved across town to a townhouse. Marta is a middle school teacher, and Robbie is dentist. Marta earned $39,500 for the year in salary, and Robbie earned $95,750 in salary. As part of the divorce agreement, Marta was able to keep the house, which they originally paid $210,000 for in 2014 for but is now worth $325,000 in 2024. In the divorce agreement, Robbie agreed to pay $25,800 per year in support of their child Michael. Determine the total recognizable gross income for Marta in 2024.

Determining AGI (4 points): In 2024, Carlita moved across the country from the east coast to the west coast. She was moving because the advertising agency she worked for wanted her to relocate to work with a big new client the company had landed on the west coast. Her company reimbursed $9,000 of moving expenses (her total cost for the move), and her total wages for the year were $121,000. While living on the west coast, she began volunteering for a children’s hospital doing public relations for their office. She estimated her time volunteering at the hospital during the year was worth $6,100. She also paid $365 in professional dues to the American Association of Advertising Agencies at the beginning of the year, which was not reimbursed by her employer. Determine Carlita’s AGI for 2024.

Use the following tax structure to answer Part 1 and Part 2. Taxpayer Taxable Income Total Tax Chandler $80,000 $25,000 Monica $60,000 $25,000 Phoebe $35,000 $25,000 Joey $35,000 ? Rachel $60,000 $25,000 Ross $80,000 $25,000   Rachel and Monica agree that a tax system should be fair in the sense that it should have vertical equity. However, while Rachel thinks that vertical equity should be assessed in terms of the tax dollars paid by taxpayers, Monica thinks it should be assessed based on the tax rate applied to taxpayers. Ignoring the potential amount of tax Joey pays in the tax structure above, who is likely to think the tax structure above is fair in terms of vertical equity? (4 points)

Identifying qualifying children (4 points): The Striker household has 6 people in it. All the individuals are U.S. citizens and, outside of Warren and Janet, none of the other individuals are married. The following activity occurred in 2024. Two parents: Warren and Janet, who are married and file jointly. Three children: Lea (age 16), Rex (age 20), and Tim (age 22) Lea lives with Warren and Janet all year and is entirely supported by them. Rex is an undergraduate college student at George Mason and lives in the dorm while at school but at home during the summer. He is a great student and earned a merit based scholarship to cover his tuition and fees of $10,000 that requires no service on his part. His parents pay $14,000 for his dorm costs, meal plan, and medical/dental care for the year. Rex does not have any additional income of his own. Tim lives at home with his parents all year and is unemployed. He does not attend school. His parents cover all of his housing, food, and insurance costs totaling $20,000 per year. Janet’s mother: Karen (77). She lives with Warren and Janet the entire year and does not work or file a separate tax return. She is entirely supported by Warren and Janet. Determine the number of “qualifying children” Warren and Janet have for purposes of filing status.

How did “New Trade Theories” differ from theories that came before them?