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professor190 [17]
2 years ago
10

Fred and Lucy are married, ages 33 and 32, and together have AGI of $120,000 in 2019. They have four dependents and file a joint

return. They pay $5,000 for a high deductible health insurance policy and contribute $2,600 to a qualified Health Savings Account. During the year, they paid the following amounts for medical care: $9,200 in doctor and dentist bills and hospital expenses, and $3,000 for prescribed medicine and drugs. In October 2019, they received an insurance reimbursement of $4,400 for the hospitalization. They expect to receive an additional reimbursement of $1,000 in January 2020. Determine the maximum itemized deduction allowable for medical expenses in 2019.
Business
1 answer:
valkas [14]2 years ago
5 0

Answer:

$800

Explanation:

Fred and Lucy's itemized medical expenses are:

doctor and dentist bills + hospital expenses    $9,200

<u>minus reimbursements                                      ($4,400)   </u>  

unreimbursed expenses                                    $4,800

Health insurance premiums                               $5,000

<u>Prescribed medicines and drugs                      $3,000      </u>

Total medical expenses                                    $12,800

<u>minus 10% of AGI = 10% x $120,000                ($12,000)    </u>

Deductible medical expenses                              $800

Contribution to qualified Health Savings Accounts are deducted directly from the AGI, and should not be included as medical expenses.

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On October 1, 2016, Adams Company paid $4,200 for a two-year insurance policy with the insurance coverage beginning on that date
rjkz [21]

Answer:

d. Prepaid insurance $3,675, and Insurance expense $525.

Explanation:

Preparation of the journal entry to determine which of the following account balances are correct after adjusting entries have been made

Based on the information given the account balances that are correct after adjusting entries have been made will be PREPAID INSURANCE $3,675, and INSURANCE EXPENSE $525.

First step is to calculate the amount the company pay per month

Amount pay per month=$4,200/24 months

Amount pay per month = $175 per month

Last step

Since Three months have been used which are October, November, and December which means that $175 per month × 3 months = $525 which will be recorded as INSURANCE EXPENSE while the balance in PREPAID INSURANCE will be $4,200 - $525 = $3,675

5 0
2 years ago
Accounting is an information and measurement system that: I.Communicates business activitiesII.Identifies business activitiesIII
andriy [413]

Answer:

I.Communicates business activities

II.Identifies business activities

III.Records business activities

IV.Helps people make better decisions

Explanation:

Accounting is an information measurement system that identifies business activities, records the business transactions as they occur, in order in which they occur, communicate the result of operations to interested parties  which helps all the stakeholders make informed decision.

The main goal of accounting information is to communicate the true and fair view position of the entity to people that may want to make informed judgment on the entity.

7 0
3 years ago
A dollar today is worth ______ a dollar in the future because it can be reinvested. Multiple choice question. the same as more t
timofeeve [1]

A dollar in the present day is worth less than that of the dollar in the future, because of returns generated over reinvestment.

<h3>What is reinvestment?</h3>

A process of investing something, which is invested more than once after generating returns over it, is known as a reinvestment. A currency is the most widely reinvested class of asset, and generally its value appreciates.

Hence, the significance of reinvestment is given above.

Learn more about reinvestment here:

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5 0
1 year ago
Read 2 more answers
g When a court awards custody of a child to one parent and not the other, this is an example of: Group of answer choices all of
Simora [160]

Answer:

equitable relief

Explanation:

A court refers to an enclosed space such as a hall or chamber where legal practitioners (judges, lawyers or attorneys and a jury) converge to hold judicial proceedings.

A lawyer refers to an individual who has obtained a law degree and is saddled with the responsibility of giving legal advice, initiate and execute lawsuits for his or her clients. These legal practitioners are saddled with the legal responsibility of listening to evidence and give a verdict about legal cases.

An equitable relief also referred to as equitable remedy can be defined as judicial remedies granted to an aggrieved person by a court of equity, requiring that the other party act or refrain from indulging in a specific act because ordinary legal remedies couldn't provide the aggrieved party sufficient (adequate) restitution for an offense commited against him or her. Thus, an equitable relief (remedy) is an injunction granted by a court of equity requiring a party to a contract to either act (mandamus or specific performance) or refrain from indulging in a particular act.

In this context, when a court of competent jurisdiction awards or grants custody of a child to one parent rather than awarding it to the other, this is an example of equitable relief.

In conclusion, an equitable relief or remedy is typically a nonmonetary judgement granted by a court of equity when ordinary legal remedies fail to provide sufficient (adequate) restitution to an aggrieved party.

4 0
2 years ago
In an unregulated, competitive market consumer surplus exists because:___________.
Paha777 [63]

Answer: some consumers are willing to pay more than the equilibrium price.

Explanation:

Consumer Surplus is simply the difference between the price that is paid by a consumer and the price that the consumer was willing to pay in the first place.

In an unregulated, competitive market consumer surplus exists because some

consumers are willing to pay more than the equilibrium price.

4 0
2 years ago
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