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Inga [223]
3 years ago
7

Simon lost $5,000 gambling this year on a trip to Las Vegas. In addition, he paid $2,000 to his broker for managing his $200,000

portfolio and $1,500 to his accountant for preparing his tax return. In addition, Simon incurred $2,500 in transportation costs commuting back and forth from his home to his employer's office, which were not reimbursed. Calculate the amount of these expenses that Simon is able to deduct, assuming he itemizes his deductions, in each of the following situations: a. Simon's AGI is $40,000. b. Simon’s AGI is $200,000.
Business
1 answer:
garik1379 [7]3 years ago
3 0

Answer:

a. $2,700

b. $0

Explanation:

a. $2,700

The $5,000 gambling losses will not be deducted.

The transportation costs will not be deducted because it is his personal expenses.

Deductibles will include his investment fees  of $2,000 and tax return fees of $1,500 and the total  sum of fees must fall below 2% of his Adjusted Gross Income before any deduction can be computed.

=(2% x $40,000) = $800

=$2,000 + $1,500 – $800 = $2,700

b. $0

The $5,000 gambling losses will not be deducted.

The transportation costs will not be deducted because it is his personal expenses.

Deductibles will include his investment fees  of $2,000 and tax return fees of $1,500 and the total  sum of fees must fall below 2% of his  Adjusted Gross Income.

=(2% x $200,000) = $4,000

=$2,000 + $1,500 = $3,500

Note - The However, because the 2% AGI (2% x $200,000 AGI = $4,000) exceeds the sum of the broker management fees ($2,000) and the tax return fees ($1,500). He won't deduct anything

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Norma Smith is the controller of Bramble Corporation and is responsible for the preparation of the year-end financial statements
melisa1 [442]

Answer:

Current liability refers to the short term obligations of the firm which need to be settled down within a period of one year or within a normal operating cycle.

(a) $0 would be reported as current liability, as it is not a current liability. It is a contingent liability.

(b) The amount of current liability is $192,900 because it is a liability of a firm to pay bonuses to the employees.

(c) The amount of current liability is as follows:

= $900,000 × 0.08 × (1/12)

= $6,000

Payment of interest on loan is a liability of the firm.

(d) $0 would be indicated in current liability, because provision for doubtful accounts is subtracted from the total accounts receivable to determine the net account receivables.

(e) Proposed dividend is a part of current liability and the amount of dividend to be shown as current liability is as follows:

= Dividend per share × No. of shares outstanding

= $3.50 per share × 41,810

= $146,335

(f) Customer advances is a current liability and the amount of customer advances to be reported in current liability is calculated as follows:

= Customer advances - Amount earned this year

= $193,100 - $57,900

= $135,200

6 0
3 years ago
6. Please list and describe your current involvement in the community. Do you volunteer for any local agencies, participate in a
Gwar [14]

there are 5 ways to participate in your community

1 volunteer your time

2 donate your resources

3 shop locally

4 join a class or group

5 support your local sports teams

6 organise your own event

Hope it is helpful

7 0
2 years ago
Inventory 12/31/17 $59,030 Cost of Goods Sold $224,679 Common Stock 76,110 Selling Expenses 16,230 Retained Earnings 45,580 Admi
Pavlova-9 [17]

Answer:

Prepare closing entries for Wildhorse Co. on December 31, 2017

Explanation:

Sales revenue         417.650  

Sales discount                  15.020

Cost of goods                224.679

Selling expense                    16.320

Administrative expense   38.719

Income tax expense          30.480

sales return and allowance 11.914  

retained earnings                  104.346

5 0
3 years ago
Woodruff Inc. offers you a project that will pay you $17,000/year. If the cost of this project is $100,000, and the discount rat
otez555 [7]

Answer:

The length of time = 12 years

Explanation:

<em>The number of years the case would be determines the length time it takes the present value of  annuity of 17,000 to equate the initial cost </em>

Initial cost = A× (1- (1+r)^(-n)/r =

A- 17,000, r- 13%, n - ?

So we will need to work out the value of " n"

100,000 = 17,000 × 1- 1.13^(-n)/0.133

100,000/17,000 =1- 1.13^(-n)/0.13

5.88235 ×0.13 = 1- 1.13^(-n)

n = 12

The number of years is approximately 12 years

The length of time = 12 years

3 0
3 years ago
A student who just graduated from college but has not found a job would most likely be:.
marshall27 [118]
Living in his/hers mom’s basement because he can’t make money.
6 0
1 year ago
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