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erastova [34]
2 years ago
9

Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has o

ne child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This year, the Johnsons received $262,000 of gross income.a. Expenses associated with Jeremyâs store include $42,250 insalary (and employment taxes) to employees, $47,700 of supplies,and $18,900 in rent and other administrative expenses.
b. As a salesperson, Alyssa incurred $2,090 in travel expensesrelated to her employment that were not reimbursed by heremployer.

c. The Johnsons own a piece of raw land held as an investment.They paid $590 of real property taxes on the property and theyincurred $245 of expenses in travel costs to see the property andto evaluate other similar potential investment properties.

d. The Johnsons own a rental home. They incurred $8,590 ofexpenses associated with the property.

e. Jeremy paid $4,590 for health insurance coverage for himself(not through an exchange). Alyssa was covered by health plansprovided by her employer, but Jeremy is not eligible for the planuntil next year.

f. Jeremy paid $2,590 in self-employment taxes ($1,295represents the employer portion of the self-employment taxes).

g. Jeremy paid $5,180 in alimony and $3,135 in child supportfrom his prior marriage (divorced in 2010).

h. The Johnsons donated $2,090 to their favorite charity.

Determine the Johnson's AGI given the above information:

Johnson's AGI=?
Business
1 answer:
patriot [66]2 years ago
8 0

Solution:

Gross income : 262000  

a) Ordinary and necessary business expenses

amount                                      explanation

108850                          Ordinary expenses associated with Jeremyâs                              

                                         business (42250+47700+18900)

b) Unreimbursed  employment expenses

amount                                      explanation

  -                        Un reimbursed employee business expenses

                                  are deductible from AGI not for AGI

c) Real property taxes and investment  expenses.

amount                                      explanation

   -                                 Taxes and investment expenses

                                      are deductible from AGI not for AGI

d) Rental expenses

amount                                      explanation

8590                       Rental expenses are deductible for

                        AGI even though they aretechnically investment or

                                  production of income expenses.

e) Self-employed  health insurance

amount                                      explanation

4590                       Jeremy may deduct all the costs of his

                                   health insurance because he is not eligible

                                          for health plan

f) Self- employment  taxes

amount                                      explanation

1295                         ½ of self-employment taxes allowed

                                                 as for AGI deduction

g) Alimony

amount                                      explanation

  5180                                Alimony is allowed for AGI deductions

h) Donations

amount                                      explanation

  -                                 Charitable contributions are from

                                              not for AGI deductions

Total for AGI  deductions Amount

                                                128505  

AGI                                          135495

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2 years ago
You want to start an organic garlic farm. The farm costs $230,000, to be paid in full immediately. Year 1 cash inflow will be $2
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Answer:

13.8%

Explanation:

IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow in year 0 =  $-230,000

Cash flow in year 1 =  $25,000

Cash flow in year 2 =  $25,000 x 1.05 = $26,250

Cash flow in year 3 =  $26,250 × 1.05 = $27,562.50

Cash flow in year 4 = $27,562.50 × 1.05 = $28,940.63

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To find the IRR using a financial calacutor:

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I hope my answer helps you

5 0
3 years ago
On January 1, 2017, Accounts Receivable and Allowance for Uncollectible Accounts for Darius Company carried balances of $20,000
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Answer:

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Ending account receivable balance = Beginning account receivable + credit sales - collections - written off amount

= $20,000 + $70,000 - $74,700 - $400

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8 0
3 years ago
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1-a. The total time available on the plastic injection molding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?

Answer:

We need to need to find the contribution margin for each product.

Contribution Margin per unit = Selling Price per unit - Variable cost per unit

Then we need to find contribution margin per unit of constrained resources with the following formula:

Contribution Margin per unit of constrained resource = \frac{Contribution margin per unit}{Resource needed per unit of product}

Constraint: Time available on plastic injection moulding machine

Ski Guard Golf guard Fishing guard

Selling Price per unit 200 300 255

Less: Variable Cost 60 140 55

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Contribution Margin unit of constraint 70 (140/2) 32 (160/5) 50

1-b. Which product would be the most profitable use of this constraint?

Manufacturing the <u>Ski Guard</u> would be the <u>most profitable use</u> of this constraint since it has <u>the maximum contribution margin per unit of constraint, ($70 per unit).</u>

1-c. Which product would be the least profitable use of this constraint?

The <u>Golf Guard</u> would be the least profitable use of this constraint since it has the <u>least contribution margin per unit of constraint, at $32 per unit</u>.

2a. A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?

We need to need to find the contribution margin for each product.

Contribution Margin per unit = Selling Price per unit - Variable cost per unit

Then we need to find contribution margin per unit of constrained resources with the following formula:

Contribution Margin per unit of constrained resource = \frac{Contribution margin per unit}{Resource needed per unit of product}

Constraint: Pounds of plastic pellets

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2-b. Which product would be the most profitable use of this constraint?

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2-c. Which product would be the least profitable use of this constraint?

The <u>SkiGuard</u>, with a contribution margin of <u>$20 per pound</u> of plastic would be the <u>least profitable</u> use of this constraint.

3. Which product has the largest unit contribution margin?

Answer : The <u>fishing guard</u> has the <u>largest per unit contribution margin </u>at <u>$200.</u>

6 0
3 years ago
Your portfolio is 310 shares of Callahan, Inc. The stock currently sells for $101 per share. The company has announced a dividen
Veseljchak [2.6K]

Answer:

$31,240

Explanation:

Calculation for what is your portfolio value as of April 19

Using this formula

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Let plug in the formula

Portfolio value = [(310 shares× ($101 -3.20))+ (310 shares × $3.20) ]

Portfolio value = [(310*97.80)+922)]

Portfolio value=$30,318+$922

Portfolio value=$31,240

Therefore your portfolio value as of April 19 will be $31,240

5 0
3 years ago
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