1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alexxx [7]
3 years ago
11

Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the

following income and expenses. You may assume that Betty will owe $2,610 in self-employment tax on her salon income, with $1,305 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.
Interest income $11,255
Salon sales and revenue 86,360
Salaries paid to beauticians 45,250
Beauty salon supplies 23,400
Alimony paid to her ex-husband, Rocky 6,000
Rental revenue from apartment building 31,220
Depreciation on apartment building 12,900
Real estate taxes paid on apartment building 11,100
Real estate taxes paid on personal residence 6,241
Contributions to charity 4,237

Determine Betty’s AGI and complete page 1 of Form 1040 for Betty.
Business
1 answer:
nasty-shy [4]3 years ago
4 0

Answer:

Betty's AGI = $28,934

Complete Page 1 of Form 1040 for Betty is attached.

Explanation:

<u>Adjusted gross income:</u>

Adjusted gross income (AGI) is an income measurement for the purpose of calculation of tax payable.

AGI is calculated by deducting allowable deduction from taxable income.

<u>Notes for the working attached:</u>

  • The salaries and expenses are deductible as business expenses.
  • Depreciation and real estate taxes are deducted as rental/royalty-related deductions.
  • Interest income is included in the adjusted gross income.
  • Alimony expenses are deductible from the adjusted gross income.
  • The revenue from apartment building is assumed as interest income and NOT the total income.
  • The real estate and charitable contributions are itemized deductions.

Download xlsx
You might be interested in
How does the following transaction impact cash flow?
Sloan [31]

Answer:

Increase

The accounts receivable asset shows how much money customers who bought products on credit still owe the business; this asset is a promise of cash that the business will receive. Cash doesn’t increase until the business collects money from its customers.

5 0
3 years ago
LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 perce
11111nata11111 [884]

Answer:

9.72%

Explanation:

Maturity = 34

Par-value = -1000

Coupon rate = 6%

Coupon PMT = -60

Value of bond = 1152

Semi-annual Yield = Rate(34, -60, 1162, -1000, 0, 0)

Semi-annual Yield = 5.00%

Annual Yield = 10%

Tax rate = 40%

After tax cost of debt = 10*(1-0.4)= 6%: Add: Flotation cost (5%) = 11%

Cost of preferred stock = Dividend/Price = 12/120 = 10%

Cost of equity = Risk free rate + Beta*Market risk premium

Cost of equity = 3.72 + 0.94*6

Cost of equity = 9.36%

Particulars  Value per    No of        Market   Weight  Cost of     Product

                    security    securities     value                    security

Bonds             1162       100000     116200000   0.15784   11          1.736213

P. stock           120        1000000  120000000  0.16299   10         1.62999

Equity              100        5000000 <u>500000000</u> <u>0.6792</u>   9.36       <u>6.35697</u>

                                                       736200000     1                         <u>9.72317</u>

So, the WACC of the firm is 9.72%

3 0
2 years ago
Carlton runs an adventure excursion company in South America. He'd like to increase the number of people booking his tours. Whic
attashe74 [19]

Answer:

Researching South American holiday destinations online.

Explanation:

As Carlton runs an adventure excursion company in South America and he'd like to increase the number of people booking his tours, researching South American holiday destinations online can lead potential customers to Carlton's company through Google Search ads. In this way, Carlton can have a better idea abut the trends and insights about his potential prospects which definitely will help him in attracting, targeting and getting them in a better and effective way, theretofore, he can increase the number of people booking his tours.

8 0
2 years ago
is considering an investment with an initial cost of $236,000. In Year 4, the project will require an additional investment and
professor190 [17]

Answer:

18.54%

Explanation:

The computation of the project modified IRR is shown below:

Here we use the spreadsheet for determining the IRR

but before that we need to find out the cash inflows

Years       Amount (in dollars)

Year 0: = - $278,191.12

              ($236,000 - $48,000 ÷ 1.13^4 -$30,000 ÷ 1.13^7)

Year 1: 64000

Year 2: 87000

Year 3: 91000

Year 4: 0

Year 5: 122000

Year 6: 154000

Year 7: 0

Now we use the excel

=IRR({-$278,191.12,$64,000,$87,000,$91,000,$0,$122,000,$154,000,0})

= 18.54%

7 0
3 years ago
Safety is a key concern at most industries, but it is especially important at BigBoom Fireworks Factory. Employees must use care
Setler79 [48]

Answer: Bureaucratic control

Explanation: Bureaucratic control is a method of controlling employees behavior in an organization by setting laid down rules and operational behaviors to be observed by the workers of the firm.

The organization in the question set some standardized safety rules to be followed by its workers, therefore the control measure applied is bureaucratic.

7 0
2 years ago
Other questions:
  • A mixed economy is
    15·2 answers
  • Which of the following statements is correct?
    11·1 answer
  • Julie has a desk right next to her manager's office. whenever her manager is in the office, julie makes sure that she works hard
    12·1 answer
  • The IMF has: a. helped support some weaker European countries during the recent financial crisis. b. been very helpful in monito
    11·1 answer
  • The following investment opportunities are available to an investment center manager: Project Initial Investment Annual Earnings
    15·1 answer
  • Which of the following countries experienced a decline in total output from 2000 to 2005?
    9·1 answer
  • Why should investors know the difference between nominal and real interest rates?
    11·1 answer
  • A(n) ______ cost requires a future outlay of cash and is relevant for current and future decision making. Multiple choice questi
    6·1 answer
  • What unique things words separate you from other applicants Applying for this funding?
    12·1 answer
  • Situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variabil
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!