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Svetradugi [14.3K]
3 years ago
11

Piper owns a vacation cabin in the Tennessee mountains. Without consider-ing the cabin, she has gross income of $65,000. During

the year, she rents the cabin for two weeks for $2,500 and uses it herself for four weeks. The total expenses for the year are $10,000 mortgage interest; $1,500 property tax; $2,000 utilities, insurance, and maintenance; and $3,200 depreciation.
a. What effect does the rental of the vacation cabin have on Piper’s AGI?
b. What expenses can Piper deduct, and how are they classified (i.e., for or from AGI)?
Business
1 answer:
ad-work [718]3 years ago
5 0

Answer and Explanation:

a)  rent income from sarah's vacation house will not affect her AGI, because according to rules if vacation house is used fewer than 15 days, in that case it is treated as a personal house and its expenses and income have not effect on the AGI. only the mortgage interest and property yax will be deducted from AGI.

b) only the mortgage interest and property yax will be deducted from AGI. other expenses are non-deductible from AGI because these are treated as personal expenses.

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Answer:

d. $19,500 and $25,000

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Now, provided un-collectible accounts receivables = $25,000

Thus year end balance of allowance for doubtful debts shall be $25,000

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after that balance at year end of allowance for doubtful debts = $5,500 + $19,500 = $25,000

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Real GDP per capita in the U.S. grew from about​ $6,000 in the year 1900 to about​ $51,500 in​ 2016, an average growth rate of​
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Answer:

36.84 years and 31.82 years

Explanation:

In this question ,we applied the rule no 70 which means we get to know the estimated number of years for doubling the real GDP

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If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, i
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