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Elena L [17]
2 years ago
15

George operates a business that generated revenues of $51 million and allocable taxable income of $1.26 million. Included in the

computation of allocable taxable income were deductible expenses of $240,500 of business interest and $250,500 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year
Business
2 answers:
sammy [17]2 years ago
8 0

Answer:

Maximum business interest deduction that George will be eligible to claim this year will be $525,300

Explanation:

Maximum business interest deduction is 30% of Adjusted Taxable income (ATI)

Adjusted Taxable income (ATI) = 1260000+240500+250500= $1,751,000

Maximum business interest deduction = 1751000*30%= $525300

ehidna [41]2 years ago
3 0

Answer:

The Maximum business interest deduction to be claim by George this year is  $525,300

Explanation:

The maximum business interest deduction will be 30 percent of Adjustable Tax income.

Adjustable Tax income = Taxable Income +  Business Interest + Depreciation

Adjustable Tax income = $1,260,000 + $240,500 + $250,500

Adjustable Tax income =  $1,751,000

Maximum business interest deduction = 30% ×  Adjustable Tax income

Maximum business interest deduction = 30% × $1,751,000

Maximum business interest deduction = $525,300

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Natalie owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her cond
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Answer and Explanation:

Natalie's Gross Income = $10,000

75 + 35 = 110 days

Expenses:

Insurance Expense (75/110) x 1000                 682

Advertising Expense                                        500

Mortgage Interest (75/110) x 3500                  2386

Property Taxes (75/110) x 900                         614

Repairs and Maintenance (75/110) x 650        443

Utilities    (75/110) x 950                                   648

Depreciation (75/110) x 8500                          5795

Until the depreciation expenses the total expenses accumulate to  5273. If we deduct that with the gross income total we get 4727. We can only deduct 4727 from the total portion of 5795 depreciation expense.

Therefore, for AGI deductions we take total of (5273 + 4727) = $10,000

For Natalie's personal deduction of AGI

Mortgage interest (35/110) x 3500                    1114

Property taxes (35/110) x 900                            286

Total personal deduction for AGI                    $1400

4 0
3 years ago
Q 2.16: according to the historical cost principle, if an asset costs $50,000 when it was purchased, it would be recorded at its
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According to the historical cost principle, if an asset costs $50,000 when it was purchased, and the one who purchased it still owns the asset today, it will have a higher value than $50,000. If the interest rate is assumed to be 5% for 5 years, the asset will be recorded as $63,814.08.
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3 years ago
When qualifying a buyer using the Fannie Mae guidelines, what is the ratio allowed for the amount of money for housing expense c
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Answer:

28%

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Most mortgage lenders, including Fannie Mae, use the 28/36 rule. That rule states that a family should spend no more than 28% of the gross monthly income (GMI) on housing expenses, and pay no more than 36% of GMI to cover debts (mortgage payments are included in this 36%).

Statistics show that households that do not comply with the 28/36 rule, tend to have difficulty paying back loans.

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3 years ago
Manufacturers use wholesalers and retailers becauseA. they have no other choice.B. they do not cost much.C. they create value fo
KiRa [710]

Answer:  Option C

Explanation: Manufacturers refers to the entity producing a good while wholesaler are the second in supply chain who procures the product from manufacturer in bulk.

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