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Korolek [52]
3 years ago
14

Samantha, who is single and has MAGI of $28,000, was recently employed by an accounting firm. During the year, she spends $2,500

for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $4,200 for tuition and $450 for books (which are not a requirement for enrollment in the course).
Assuming no reimbursement, how much can Samantha deduct for the:

a. CPA exam review course? $X
b. Law school expenses? $X
Business
1 answer:
gregori [183]3 years ago
6 0

Answer:

a. CPA exam review course $0

b. Law school expenses $4,000

Explanation:

1a. CPA exam review course will be $0 because the IRS has disallowed any costs that will lead to qualifying for a different trade .

1b. The Law School expenses will be $4,000 . Based on section 222, Samantha is been limited to $4,000 of the tuition paid.

Therefore the balance of $650 is excess tuition $200 + $450 books which will not qualify under the regular education expense deduction due to the negative position of the IRS on law school costs.

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4 0
3 years ago
BPS reported the following data for its first year of operations: Sales Revenue $8,000 Cost of Goods Available for Sale 6,200 Op
Fittoniya [83]

Answer:

D. $952

Explanation:

The computation of the net income in the case when the LIFO is elected

Particulars AMount

Net sales    $7,232   ($8,000 - $640 - $128)

less : cost of goods sold ($6,200 - $820) $5,380

Gross Profit $1,852

Less: Operating Expenses   $900

Income before taxes $952

less: Income tax $0

Net income $952

Hence, the net income is $952

5 0
3 years ago
Sarah’s marketing team was beginning the process of developing a new product to expand their current product line and/or mix. At
vlada-n [284]

Answer: New-product strategy

Explanation:

Based on the information given in the question, Sarah and her team were at the new product strategy stage of the new product development process.

This is a strategy that is used to develop a new product. The strategy helps to answer questions such as who will benefit from the products, the goals of the company and other necessary details.

5 0
3 years ago
A(n) _____ is an agreement among two or more two companies to join forces to pursue specific opportunities without actually merg
aalyn [17]
The answer is Joint Venture. It is the agreement or the business arrangement of two or more companies that agrees to share resources for a specific purpose without loosing their identities. The companies will share expenses, looses and profit associated with the venture but their other business interest will remain separate.
8 0
3 years ago
On January 1, 2019, Marigold Corp. Had the following stockholders' equity accounts.
Temka [501]

a. The preparation of the stockholders' equity section of the balance sheet at December 31 foro Marigold Corp. is as follows:

<h3>Stockholders' Equity Section:</h3>

Marigold Corporation

<h3>Balance Sheet</h3>

At December 31, 2019

Common Stock ($5 par value)

186,560 shares issued and outstanding                       $932,800

Paid-in Capital in Excess of Par Value-Common Stock  268,880

Retained Earnings                                                             446,408

Total equity                                                                  $1,648,088

b. The payout ratio and return on common stockholders' equity are as follows:

Payout ratio = Cash Dividends/Net Income

= 94% ($206,912/$220,000 x 100)

Return on Common Stockholders' Equity = Net Income/Beginniing Outstanding Equity

= 13.5% ($220,000/$1,635,000 x 100)

<h3>Data and Analysis:</h3>

Common Stock ($10 par value)

84,800 shares issued and outstanding                       $848,000

Paid-in Capital in Excess of Par Value-Common Stock 218,000

Retained Earnings                                                           569,000

Total equity                                                                $1,635,000

Jan. 15 Retained Earnings $94,976 (84,800 x $1.12) Cash Dividends Payable $94,976

Feb. 15 Dividends Payable $94,976 Cash $94,976

Apr. 15 Retained Earnings $135,680 Stock Dividends Payable $135,680 ($16 x 84,800 x 10%)

May 15 Stock Dividends Payable $135,680 Common Stock $84,800 Paid-in Capital in Excess of Par Value $50,880

July 1 Common Stock increased to 186,560 at $5 each (84,800 + 8,480 x 2)

Dec. 1  Retained Earnings $111,936 (186,560 x $0.60) Cash Dividends Payable $111,936
Dec. 31 Net income for the year = $220,000

<h3>Retained Earnings:</h3>

Beginning balance         $569,000

Net Income                       220,000

Dividends:

Jan. 15 Cash Dividends    (94,976)

Apr. 15 Stock Dividends (135,680)

Dec. 1  Cash Dividends    (111,936)

Ending balance             $446,408

Learn more about the stockholders' equity section at brainly.com/question/13373888

#SPJ1

3 0
2 years ago
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