E first phase of the writing process involves writing a rough draft of your message.

Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jani

Afina-wow [57]

Answer:

a. Taxable income = $80,000

b. Taxable income = $77,600

c. Taxable income = $80,600

Explanation:

Taxable income refers to the amount of income that is used to determine the amount of tax that will be paid to the government by an individual or firm in given year. The taxable income is arrived at after all the relevant addition and allowable deductions have been made.

The requirements are therefore answered as follows:

a. What would their taxable income be if their itemized deductions totaled $28,000 instead of $16,500?

Note: See part a of the attached excel file see the effect on taxable income.

The itemized deductions total of $28,000 instead of $16,500 makes the taxable income to be $80,000.

In the attached excel file, the following calculations is used:

Qualified business income deduction = Qualified business income * Parentage of deduction allowed = $10,000 * 20% = $2,000

b. What would their taxable income be if they had $0 itemized deductions and $6,000 of for AGI deductions?

Note: See part b of the attached excel file for the calculations of the taxable income.

This makes the taxable income to be equal to $77,600.

c. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income?

Note: See part c of the attached excel file for the calculations of the taxable income.

The loss of loss of $5,000 on the sale of some of their investment assets incurred by the Jacksons is capital loss.

For tax purposes, capital loss of can be deducted as a loss on tax return by tax payers with a maximum of $3,000 to be deducted per year.

Therefore, the Jacksons will deduct $3,000 as a capital loss from their tax return, and the effect of this is to reduce the taxable income by $3,000.

This makes the taxable income to be equal to $80,600.

Download xlsx

8 0

3 years ago

this is the percentage of each dollar of income, on average, that is spent for current needs and wants, rather than saved.

Finger [1]

Average propensity to consume (APC) counts how much money is spent each year versus saved.

What is Average propensity to consume (APC)?

Average propensity to consume (APC) counts how much money is spent each year versus saved. This might be done by a single person who is curious about where their money is going or by an economist who is interested in tracking the spending and saving patterns of a whole country. In all scenarios, the tendency to consume can be calculated by dividing average household spending by average household income. A high average propensity to consume is typically advantageous for the economy from a larger economic perspective. When customers have a high propensity to consume, they save less and spend more on products and services. This rising demand fuels economic development, corporate growth, and widespread employment.

To learn more about Average propensity to consume (APC)
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Complete Question

7 0

2 years ago

Diane Corporation is preparing its year-end balance sheet. The company records show the following selected amounts at the end of

White raven [17]

Answer:

Diane Corporation

1-a. Amount of Current Liabilities:

$102,400

1-b. Computation of working capital:

Working capital = Current assets minus Current liabilities

= $168,000 - 102,400 = $65,600

2. Computation of working capital with contingent liabilities of $250,000 in the notes to the financial statements:

If the contingent liabilities are likely to occur, since the amount has been ascertained, the working capital would have been different.

Working capital would have been = 168,000 - 102,400 - 250,000 = ($184,400).

Explanation:

a) Current Liabilities:

Accounts payable 56,000

Income taxes payable 14,000

Liability for withholding taxes 3,000

Rent revenue collected in advance 7,000

Wages payable 7,000

Property taxes payable 3,000

Note payable (10%, due in 6 months) 12,000

Interest payable 400

Total current liabilities $102,400

b) Current Assets = Total assets minus noncurrent assets

= $530,000 - 362,000 = $168,000

c) Contingent liabilities are probable future financial obligations. They become probable to occur in the future as a result of some past events. If it is probable that they would occur and the amount involved can be reasonably estimated, they are recognized in the accounts. If the amount cannot be ascertained, they are presented as notes to the financial statements.

d) Current liabilities are the financial obligations owed by an entity to others as a result of past transactions, and their payment or settlement is usually due within the next 12 months.

e) Working capital is the difference between current assets and current liabilities of a company. It is called working capital because they are the net resources that can be used in the business operations of the company within the current period.

4 0

3 years ago

The following data were taken from Alvarado Company's balance sheet: Dec. 31, 2019 Dec. 31, 2018 Total liabilities $4,085,000 $2

Rudik [331]

Answer:

Dec. 31, 2019 Ratio to Liabilities to Owner's Equity = 0.95

Dec. 31, 2018 Ratio to Liabilities to Owner's Equity = 0.80

Explanation:

given data

Dec. 31, 2019

total liabilities = $4,085,000

Total owner's equity = 4,300,000

Dec. 31, 2018

total liabilities = $2,880,000

Total owner's equity = 3,600,000

to find out

Compute the ratio of liabilities to owner's equity

solution

we know that here Ratio to Liabilities to Owner's Equity is Total Liabilities divide Total Owner's Equity ....................1

so

now put here value for both 2018 and 2019 from equation 1

so for Dec. 31, 2019

Ratio to Liabilities to Owner's Equity = $\frac{4085000}{4300000}$

Ratio to Liabilities to Owner's Equity = 0.95

and for Dec. 31, 2018

Ratio to Liabilities to Owner's Equity = $\frac{2880000}{3600000}$

Ratio to Liabilities to Owner's Equity = 0.80

6 0

3 years ago

The gains from trade area.evident in economic models, but seldom observed in the real world.b.evident in the real world, but imp

ddd [48]

<u>Option C</u>

The gains from trade are a result of more efficient resource allocation than would be observed in the absence of trade.

<u>Explanation:</u>

The statisticians have surveyed the gains from trade from diverse viewpoints. The ideal ideologists thought that gains from trade emerged from enhanced rendering and specialization. Gains from trade are the exclusive compensations to business operators from holding granted an improvement in deliberate dealing with each other.

The contemporary ideologists viewed the gains from trade as the gains emanating from exchange and specialization. To estimate the gains from the trade, a metaphor of one nation's expense of making with a remote nation expense of making for the identical commodity is lacked.

3 0

3 years ago