>fedtax is hard

>my tuesday schedule goes something like this: work at the nursing department from 11:30 til 12:30, go to my federal income tax class til 2pm then cost accounting til 3:30. i can’t skip either class then attend the other mainly because i have the same instructor. so either i attend both or skip both.

anyway, my instructor has this great idea of a having a test on both classes. yeehaw. i finshed my fed tax test in half an hour flat, as usual, and he was asking if the test was too easy (i wasn’t the first one to get out of the class, by the way), i just said, “noticed most who are done first are also in your cost class?” then he just gave me a sly smile. the kind of smile my sister gives me when she “accidently” broke any of my stuff.

it’s 1:26 now, me, being a diligent student is NOT studying of course, haha! i’m still kinda rattled with that tax test!

here’s an example: jose is a partner in an accounting firm that uses a calendar year. he uses a cash basis method of accounting for tax purposes but uses accrual system for financial purposes. he takes 25% of profits and losses and can withdraw $8000 a month from the partnerships coffers for personal expenses. he withdrew $96000 in 2004. he received $25000 in 2004 for 2003 profits. he also received $100000 in 2005 for 2004 profits. in 2004, the partnership’s profit was $484000. compute jose’s taxable income from the partnership in 2004.

that’s one question. out of 28.

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