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
o-na [289]
2 years ago
9

QUIZLET Kim raises and sells horses as a hobby. She also has income from riding lessons that are part of the hobby activity. Inc

ome from horse sales $10,000 Income from riding lessons $5,000 Feeding expense $8,000 Boarding expenses $6,000 Veterinary expenses $2,000 What is the tax impact of this activity? Question 36 options: Include no income; deduct no expenses. Include all income; deduct all expenses. Include all income; deduct expenses up to income Include all income; deduct no expenses
Business
1 answer:
Juli2301 [7.4K]2 years ago
6 0

Answer:

Include all income; deduct no expenses

Explanation:

The Tax Cuts and Jobs Act changed the way hobby expenses and income is taxed. Since 2019, any income generated by a hobby is taxed as ordinary income (not subject to self employment taxes) but any expenses related to your hobbies are not deductible any more. Until 2018, you could deduct hobby expenses as long as they were above 2% of your gross income and they didn't hobby income.

You might be interested in
Theresa leased a one-bedroom apartment from Landlady for one year at $500 per month. After three months, she vacated the apartme
LenaWriter [7]

Answer:

She owes 4500 because she leased the apartment for 1 year and her yearly total would be 6,000 but since she left after three months the amount she paid was 1,500 and 6,000 - 1,500 is 4,500 that is how much she owes.

Explanation:

I hope this helped have a great day!

5 0
3 years ago
​Tom's Taxidermy has a monthly target operating income of $29,000. Variable expenses are 65​% of sales and monthly fixed expense
HACTEHA [7]

Answer:

Leverage factor will be 1.344

Explanation:

We have given operating income = $29000

And variable expenses is 65 5 of the sales

And fixed expenses = $10000

So contribution margin = $29000+$10000 = $39000

We have to find the leverage factor

Leverage factor is given by

Leverage factor =\frac{contribution\ margin}{operating\ income }=\frac{39000}{29000}=1.344

So leverage factor will be 1.344

5 0
3 years ago
During 2019, its first year of operations, Bento Steel Corporation reported a net operating loss of $500,000 for financial repor
erastovalidia [21]

Answer:

The amount of net income reported in 2020 income statement would be $75,000.

Explanation:

Pretax accounting income for 2020 = $100,000

Income tax expense for 2020 = Current tax + Reversal of Deferred tax assets

= ($100,000 - $100,000)*25% + ($100,000*25%)

= $25,000

Amount of net income reported in 2020 income statement = Pretax accounting income - Income tax expense

= $100,000 - $25,000

= $75,000

Therefore, The amount of net income reported in 2020 income statement would be $75,000.

8 0
3 years ago
Moira Company has just finished its first year of operations and must decide which method to use for adjusting inventory account
Scrat [10]

Answer:

The Cost of good sold will decrease by 10,000

The other accounts balance will be the same.

<em>Missing Information:</em>

Ending balances in the relevant accounts were:

Work-in-Process            40,000

Finished Goods             80,000

Cost of Goods Sold     680,000

Explanation:

The company applied overhead for the amount of 435,000

This was charged into finished good which latter become cost of goods sold.

Then, as the actual overhead was 425,000 we have to adjust for the over-applied overehad. We applied more than it cost so we have to reduce it.

435,000 - 425,000 = 10,000

<u>We will decrease our COGS against the factory overhead account.</u>

COGS 10,000 debit

  factory overhead 10,000 credit

8 0
3 years ago
Real GDPa.is the current dollar value of all goods produced by the citizens of an economy within a given time. b.measures econom
Gre4nikov [31]

Answer:all of the above are Correct (D)

Explanation:

Real GDP is a macro economic statistics that measure the value of the goods and services produced by an economy in a specific period , adjusted for inflation. Government use both minimal and real GDP as metrics for analyzing economic growth and purchasing power over time.

3 0
2 years ago
Other questions:
  • A Cajun trinity, used in many Louisiana Creole and Cajun dishes such as gumbo, contains A. onion, celery, and parsnip. B. onion,
    6·1 answer
  • Why is good customer service particularly important in the Internet age?
    15·1 answer
  • Brittany sold her stock (the basis of $60,000) to her brother, Ridge, for $35,000, the fair market value. Her brother subsequent
    13·1 answer
  • While Influx Electronics Inc. incurs $350 to manufacture a laptop, its competitor, Hearthstone Electronics Inc., incurs $300. Ho
    10·1 answer
  • A laptop computer that you want to purchase was originally priced at $1225. You will receive a 20% student discount, and the sal
    13·1 answer
  • The current rates are: (1) Spot exchange rate: $2.00/£; (2) 90-day USD denominated bonds: 2% (8% annual); (3) 90-day UK pound de
    12·1 answer
  • Beloved Baby Company manufactures and sells children's strollers. Each stroller requires eight screws. For September, Beloved Ba
    11·1 answer
  • Which of the following statements about taxation is TRUE?
    12·1 answer
  • "Modern technology is developed from local / traditional technology." Justify this statement
    6·1 answer
  • 1.4. Explain the role of financial markets in the economy.​
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!