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kaheart [24]
3 years ago
13

Mr. Pine, a self-employed engineer in Boston, traveled to Chicago in order to attend a course on new engineering techniques. He

spent 2 weeks attending the course and remained in Chicago for an additional 6 weeks on personal matters. The air flight cost $200, hotel $600, meals $320, and the tuition for the course $500. How much of these expenses may Mr. Pine deduct on his return

Business
1 answer:
mezya [45]3 years ago
7 0

Answer:

$930

Explanation:

Kindly check attached picture for explanation

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g Jana just found out that she is going to receive an​ end-of-year bonus of ​$32,200. She is in the 35 percent marginal tax brac
maria [59]

Answer:

Jana just found out that she is going to receive an​ end-of-year bonus of ​$32,200. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus.

  • tax liability = $32,200 x 35%  = $11,270

Now assume that instead of receiving a​ bonus, Jana receives the ​$32,200 as a​ long-term capital gain. What will be her​ tax?

  • tax liability = $32,200 x 15% = $4,830

Which form of compensation offers Jana the best​ after-tax return?

  • if the bonus is taxed as a long term capital gain, she will páy less than half the taxes, so it is the best option for her

Would your calculation be different if the gain was​ short-term rather than​ long-term?

  • Short term capital gains are taxed at the same rate as ordinary income, so the difference between the bonus being a long vs short term capital gain is very significant to Jana.

8 0
3 years ago
With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also assume that the least-cost combinati
Taya2010 [7]

Answer:

A) Total revenue = 400 loaves of bread x $2 per loaf of bread = $800

B) Total economic costs = (5 units of labor x $40 per unit of labor) + (7 units of land x $60 per unit of land) + (2 units of capital x $60 per unit of capital) + (1 unit of entrepreneurial ability x $20 per unit) = $200 + $420 + $120 + $20 = $760

C) Economic profit or loss = total revenue - total economic costs = $800 - $760 = $40

8 0
3 years ago
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:
Butoxors [25]

Answer:

Part(A):

Total expenses in connection with condo:

                 = 2000 + 6500 + 2000 + 1400 + 2500 + 14500

                 = $28,900

Assuming Alexa receives $20,000 inn gross rental receipts, she will incur losses = 20000 -28,900 = (8,900)

As Alexa's AGI from all sources other than the rental property($200,000) is higher than $150,000, she will not be able to deduct any amount of loss against her active income.

Therefore the loss is not deductible and rental activity has no effect on her AGI.

Part(B):

Assuming that Alexa’s AGI from other sources is $90,000.

Since her AGI is less $100,000, she will be able to deduct loss of $8,900

Therefore, rental activity loss will reduce Alexa's AGI to = 90,000 - 8.900 = 81,100

The rental activity loss will reduce her AGI by $8,900 and her AGI would be  81,100.

5 0
3 years ago
Consider the owner of a local boutique. She is deciding if she should upgrade the storage and display containers. The total cost
miv72 [106K]

Answer:

a) $3077

b) The owner should make this investment because the marginal benefit is greater than the marginal cost

Explanation:

Given data :

Total cost = $2000

depreciation rate = 8% per year

expected increase in revenue (CF ) = $400

interest rate = 5%

a) Determine the present value of the stream of revenue due to the upgrades

= CF / ( 1 + r ) ^t      where ( 1 + r )^t = 13%

= 400 / 13%

= $3077

b) The owner should make this investment because the marginal benefit is greater than the marginal cost

8 0
3 years ago
The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhea
Aleks [24]

Answer:

The total factory overhead to be charged to the desk lamps is $235,000

Explanation:

solution attached below

8 0
3 years ago
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