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Svet_ta [14]
3 years ago
9

Tom Lewis, an individual taxpayer, performs services for the Red Cross at an out-of-town location for three weekends during the

year. There was no significant element of personal pleasure for Tom on these weekend trips. He incurred the following expenses in relation to these trips: Special uniform worn while performing services $100 Meals and lodging while on weekend trips 300 How much of the expenses may Tom deduct as a charitable donation on his Schedule A (itemized deduction) form (assuming that he can fully itemize and deduct all such expenses)
Business
1 answer:
lawyer [7]3 years ago
5 0

Answer:

The amount of the expenses that Tom may deduct as a charitable donation on his Schedule A is $400.

Explanation:

Since Tom's weekend trips were devoid of any significant element of personal pleasure and assuming that he can fully itemize and deduct all expenses incurred, the total amount of the expenses incurred in relation to the trips may be deducted by Tom as a charitable donation.

Therefore, we have:

Amount deductible as a charitable donation = Special uniform worn while performing services + Meals and lodging while on weekend trips = $100 + $300 = $400

Therefore, the amount of the expenses that Tom may deduct as a charitable donation on his Schedule A is $400.

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Learning Activity 2 (pls post under Unit 2)
ICE Princess25 [194]

1. The nominal GDP for 2020 and 2021 is as follows:

2020 = $330

2021 = $592

2. The Real GDP for 2020 and 2021, using 2020 as the base year is as follows:

2020 = $330

2021 = $508 ($592/1.165)

3/ The Real GDP per capita for 2020 and 2021 using a population of 100 is as follows:

2020 = $3.30 per capita

2021 = $5/08 per capita

<h3>What is the difference between the Nominal GDP and the Real GDP?</h3>

The nominal GDP uses current prices while the Real GDP adjusts the current prices using the GDP deflator (thus accounting for inflation).

<h3>Data and Calculations:</h3>

                      Car                          Trucks

            Quantity    Price       Quantity    Price     Nominal GDP

2020      12              $10             15           $14     $330 (12 x $10 + 15 x $14)

2021      20              $12           22           $16     $592 (20 x $12 + 22 x $16)

2021 Real GDP:

              20            $10          22            $14      $508 (20 x $10 + 22 x $14)

GDP Deflator = Nominal GDP/Real GDP x 100

= $592/$508

= 1.165

Thus, while nominal GDP is based on current prices, the real GDP removes the effects of inflation.

Learn more about the GDP deflator at brainly.com/question/15041222

#SPJ1

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