Solution Manual for Fundamentals of Taxation for Individuals and Business Entities: A Practical Approach 2025th Edition by Gregory A. Carnes, All Chapters Fully Covered Complete Guide A+||NEWEST VERSION.

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Fundamentals of Taxation for Individuals: A Practical Approach 2025th Editio
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by Gregory A. Carnes, Suzanne Youngberg
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,SOLUTION MANUAL FOR
Fundamentals of Taxation for Individuals A Practical Approach, 2025 Edition Gregory A.
Carnes, Suzanne Youngberg
Chapter 1—The Professional Practice of Taxation
End-of-Chapter Solutions

Discussion Questions

1.
Title: Discussion Question 1
Difficulty: Easy
Learning Objective 1: 1.1
Standard 1: AACSB || Knowledge
Standard 2: AICPA || AC: Reporting
Standard 3: Bloom's || Knowledge
Section Reference 1: 1.1
Solution:
The goal of tax planning is to maximize after-tax income. After-tax income is net income after
reducing revenue for all expenses including federal income taxes. Tax planning should consider
tax factors as well as non-tax factors.
Time On Task: 2 minutes

2.
Title: Discussion Question 2
Difficulty: Easy
Learning Objective 1: 1.2
Standard 1: AACSB || Knowledge
Standard 2: AICPA || AC: Reporting
Standard 3: Bloom's || Knowledge
Section Reference 1: 1.2
Solution:
The formula to calculate an individual‘s taxable income is as follows:

Gross income
Less: Deductions for Adjusted Gross Income
Adjusted Gross Income
Less: Greater of Standard Deduction or Itemized Deductions
Less: Qualified Business Income Deduction
Taxable income
Time On Task: 2 minutes

3.
Title: Discussion Question 3
Difficulty: Easy

,Learning %stObjective %st1: %st1.2
%stStandard %st1: %stAACSB %st||

%stKnowledge

Standard %st2: %stAICPA %st||%stAC:
%stReporting %stStandard %st3: %stBloom's

%st|| %stKnowledge %stSection

%stReference %st1: %st1.2

Solution:
Form %st1040 %stis %stused %stto %stfile %stan %stindividual‘s %stincome %sttax %streturn %stinformation. %stForm
%st1040SR %stcan %stbe %stused %stby %stthose %st65 %stand %stolder.

Time %stOn %stTask: %st1 %stminute

4.
Title: %stDiscussion %stQuestion
%st4 %stDifficulty: %stMedium

%stLearning %stObjective %st1:

%st1.3

Standard %st1: %stAACSB %st||
%stKnowledge %stStandard %st2: %stAICPA

%st|| %stAC: %stReporting %stStandard %st3:

%stBloom's %st|| %stKnowledge %stSection

%stReference %st1: %st1.3

Solution:
A %stlower-income %sttaxpayer %stneeds %stevery %stafter-tax %stdollar %stearned %stto %stpay %stbills %stand %stdoes %stnot
%sthave %stmuch %stdiscretionary %stincome. %stIf %stthe %stincome %sttax %strate %stincreases, %stthe %stlower-

income %sttaxpayer %stmay %sthave %stto %stwork %stmore %sthours %stat %sttheir %stcurrent %stjob %stor %sttake %ston
%stanother %stjob %stto %sthave %stthe %stsame %stamount %stof %stafter-tax %stincome. %stA %stwealthier %sttaxpayer

%stmay %stview %stthe %stincreased %sttax %strate %stadversely %stbut %sthas %stmore %stflexibility %stwith %sttheir

%stdiscretionary %stincome. %stThe %stwealthier %sttaxpayer %stmay %stview %sttheir %stleisure %sttime %stas

%stmore %stimportant %stthan %stworking %stextra %sthours %stto %stearn %stthe %stsame %stafter-tax %stpay.

Time %stOn %stTask: %st4 %stminutes


5.
Title: %stDiscussion %stQuestion
%st5 %stDifficulty: %stEasy

Learning %stObjective %st1: %st1.3
%stStandard %st1: %stAACSB %st||

%stKnowledge

Standard %st2: %stAICPA %st||%stAC:
%stReporting %stStandard %st3: %stBloom's

%st|| %stKnowledge %stSection

%stReference %st1: %st1.3

Solution:
Tax %stplanning %stis %stthe %stprocess %stof %stestimating %stan %stindividual‘s %sttax %stliability %stfor
%stmultiple %stscenarios %stand/or %stmultiple %styears %stand %stconsidering %stways %stto %streduce %stit. %stThe

%stappropriate %stgoal %stfor %sttax %stplanning %stis %stto %stmaximize %stafter-tax %stincome. %stAfter-tax

%stincome %stis %stnet %stincome %stafter %streducing %strevenue %stfor %stall %stexpenses %stincluding %stfederal

%stincome %sttaxes. %stTax %stcompliance %stis %stdetermining %stthe %sttax %steffects %stfor %sttransactions

%stthat %sthave %stalready %stoccurred, %stincluding %stthe %stpreparation %stof %sttax %streturns.

Time %stOn %stTask: %st4 %stminutes

, 6.
Title: %stDiscussion %stQuestion %st6