Overview
ACCT 340 – Individual US Taxation
Written Project 1
Reportable Income (25 Points)
Eugenia has worked as a seamstress for the past 15 years. In 2024, she lost
her job due to lingering effects of COVID-19 and started receiving
unemployment compensation in March.
She was rehired in October after receiving total unemployment
compensation of $28,000. Eugenia plays bingo every Saturday night at the
American Legion Hall and luckily won $2,000. She also received $10,000 as a
gift from an aunt and $25,000 as an inheritance when her grandma passed
away this year.
Finally in December, Eugenia purchased an antique desk at a flea market and
discovered $1,000 in cash hidden inside.
Eugenia has hired you as her accountant to guide her in determining the tax
effects of her various income items for 2024.
Required:
Prepare a memo for the Tax File
Prepare a formal letter to Ms Eugenia
Suggested Letter Format
From: Excellent Student
To: Taxation Professor
Subject: Memo to Client(s) Date: November 1, 2025.
Dear Clients:
Suggested Memo Format
From: Excellent Student
To: Taxation Professor
Subject: Memo to Tax File Date: November 1, 2025.
Attention: Working Paper File
ACCT 340 – Individual US Taxation
Written Project 2
Deductible Expenses (25 Points)
Horatio Kane is a new client, and you have started to review the past three
year’s tax returns for guidance on what to look for in completing the current
year’s tax return. Horatio is a Criminal Scene Investigator for Dade County in
Miami, FL. He is also an independent private investigator. He enjoys
collecting guns and has a valuable collection.
Horatio receives Form 1099-MISC for the income from his private investigator
activities and a W-2 from Dade County as a CSI. Horatio has provided you
with the following list of expenses which he expects are deductible:
$1,000 : Display case for guns
$500: Special ammunition for guns in the collection
$800: Uniforms needed as a CSI
$750: Tools for CSI position
$365: Holster for a gun as a private investigator
$1,300: Office expense related to being a private investigator
Required:
Prepare a memo for the tax file
Prepare a formal letter to Horatio Kane
Suggested Letter Format
From: Excellent Student
To: Taxation Professor
Subject: Memo to Client(s) Date: November 1, 2025.
Dear Clients: