Complete Question:
Jon is a cash-basis taxpayer and has adjusted gross income of $40,000 in 2018. During the year he incurred and paid the following medical expenses.
Drugs and medicines prescribed by doctors $300
Health insurance premiums $750
Doctors' fees $2,250
Eyeglasses $75
How much medical expense can he deduct as itemized deduction?
Answer:
Jon
Medical expense that Jon can deduct as itemized deduction:
= $375
Explanation:
a) Data and Calculations:
Adjusted gross income = $40,000
Incurred medical expenses:
Drugs and medicines prescribed by doctors $300
Health insurance premiums $750
Doctors' fees $2,250
Eyeglasses $75
Total = $3,375
Under Tax Cuts and Jobs Act (TCJA), the medical expenses which can be deducted as an itemized deduction on the federal income tax return are only to the extent that they exceed 7.5% of adjusted gross income (AGI).
7.5% of $40,000 = $3,000
Therefore, Jon can itemize deduction of $375 in medical expense.
Answer:
Option (E) is correct.
Explanation:
Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.
Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.
$250
COVERAGE LIMIT-DEDUCTIBLE = $4000-$1500 = 2500
$2500/10 = $250
Answer:
6.78%
Explanation:
Data provided in the question:
Total return i.e nominal rate = 15% = 0.15
Real return = 7.7% = 0.077
Now,
Inflation rate = 
- 1
on substituting the respective values, we get
Inflation rate = 
- 1
or
Inflation rate = [ 1.15 ÷ 1.077 ] - 1
or
Inflation rate = 0.0678
or
Inflation rate = 0.0678 × 100% = 6.78%
Answer:
Overhead budget:
Variable overhead= 274,400
Fixed overhead= 180,000
Total overhead= $454,400
Explanation:
Giving the following information:
Production= 4,900 units
Each unit requires 5 hours of direct labor at a rate of $16 per hour.
Variable factory overhead is budgeted to be 70% of direct labor cost
Fixed factory overhead is $180,000 per month.
First, we need to determine the direct labor cost:
Direct labor cost= (4,900*5)*16= $392,000
Now, we can calculate the overhead budget:
Overhead budget:
Variable overhead= (0.7*392,000)= 274,400
Fixed overhead= 180,000
Total overhead= $454,400
