Arthur pays tax of $5,000 on taxable income of $50,000 while taxpayer Barbara pays tax of $12,000 on $120,000. The tax is a

Defamation in an individual’s character, in a written memo, is an example of:

Kamala owns 1,000 shares of Orange Corporation. This year, Orange declared a 10% stock dividend. There was no option for shareholders to receive cash. When Kamala received 100 shares of Orange stock, it had a fair market value of $50 a share. How much income does Kamala have from the dividend?

Amounts withdrawn from qualified tuition plans are tax-free if the amounts are used for qualified higher education expenses including tuition, fees, books, and room and board for students attending on at least a half-time basis.

Will exchanges a building with a basis of $35,000, and subject to a liability of $30,000, for land with a FMV of $50,000 owned by Jane. Jane takes the building subject to the liability. The amount realized by Will is

Mr. Dennis purchased a machine for use in his business. Mr. Dennis’ costs in connection with this purchase were as follows:Note to seller$33,000Cash paid to seller5,000State sales tax2,400Freight to place of business1,500Wages paid to workers to install machine4,200What is the amount of Mr. Dennis’ basis in the machine?

Theo’s wife moved overseas in April, and they have not been in touch, although they are still legally married. Theo pays all the costs of the household which includes his 12-year-old son. Because Theo is still married, his only option is to file his tax return as married filing separately.

The following information for 2023 relates to Emma Grace, a single taxpayer, age 18:a.Compute Emma Grace’s taxable income assuming she is self-supporting.b.Compute Emma Grace’s taxable income assuming she is a dependent of her parents.

Kathleen received land as a gift from her grandfather. At the time of the gift, the land had a FMV of $105,000 and an adjusted basis of $85,000 to Kathleen’s grandfather. The grandfather did not have any gift taxes due. One year later, Kathleen sold the land for $110,000. What was her gain or (loss) on this transaction?

Parents must provide more than half the support of their child under the age of 19 in order for the child to be considered as a dependent qualifying child.