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kherson [118]
3 years ago
7

Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is

still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer.
a. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.
c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.
d. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
e. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.
f. Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken. Ken received the check on December 30 in the amount of $1,100.
g. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $6,250 in itemized deductions last year (the standard deduction for a single filer was $6,200).
h. Ken received $30,000 of interest from corporate bonds and money market accounts.
Determine Ken's gross income
Business
1 answer:
elena-s [515]3 years ago
3 0

Answer: $‭46,950‬

Explanation:

a. All sources of income should be included including illegal ones.

b. Gain = 1,000 (32 - 31)

= $1,000

c. Gain = Amount received - Amount paid apportioned per year

=  25,000 - (210,000/20)

= 25,000 - 10,500

= $14,500

d. Not included as disability benefits are not included.

e. The $300 is deductible but the $200 that went towards car payment is not.

f. Taxation principles require that the person taxed should be the person earning the income so Ken will not be charged on the $1,100

g. The relevant figure here is the tax benefit before the $610 refund.

Ken claimed $6,250 in itemized deduction but the standard deduction is $6,200. Ken gained;

= 6,250 - 6,2000

= $50

h. The $30,000 is included as Ken earned it.

Gross Income = 1,200 + 1,000 + 14,500 + 200 + 50 + 30,000

= $‭46,950‬

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<u>e-commerce</u>.

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When Molave ​​Furniture Company wants to launch a new website to customize the ability for customers to shop online and thereby increase sales, it is an e-commerce promotion strategy.

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An asset was acquired on October 1, 2021, for $78,000 with an estimated five-year life and $13,000 residual value. The company u
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Based on the information given  the gain or loss if the asset was sold on March 31, 2024 is $6,000 gain.

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Depreciation per units= ($78,000 - $13,000) ÷ 20,000 units

Depreciation per units= $65,000 ÷ 20,000 units

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Accumulated depreciation=(500 units × $3.25)+( 3,000 units × $3.25)+(3,500 units × $3.25)+( 1,000 units × $3.25)

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assembly                  $228060         180000 hours             $12.67

processing oders       $34068             1200 orders             $28.39

inspection                   $125560           1720 hours                 $73.00

Cost per activity is obtained by dividing total cost for each activity pool with its respective total activity. Cost per activity is helpful to identify the total cost allocated to each activity.

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assembly                  460 hours                     $12.67                  $5828.20

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