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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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Which of the following would not be included in operating assets in return on investment calculations? A) Cash. B) Accounts Rece
maxonik [38]

Answer: Which of the following would not be included in operating assets in return on investment calculations? D) Factory building rented to (and occupied by) another company

Explanation: Operating assets are assets that are used to conduct ongoing business operations. However, if they are going to yield a return on investment, it would not be counted in their operating assets due to renting the building to another company.

7 0
3 years ago
Going public offers a company the following advantages, except:
Tresset [83]

Answer: d. The ability to borrow at a lower interest rate

Explanation:

Going public, in form of initial public offering (IPO) which is the first sale of stock by a company have varieties of advantages such as growth by generating more capital, publicity by generating more public awareness, also giving them access to broader market. But IPO does not give them ability to borrow at a lower interest rate it rather provides more funds from stocks to pay up existing debts.

5 0
3 years ago
For lunch, Wendy eats only salads or fruit & yogurt smoothies. Her weekly food budget is $48. Each salad costs $6 and each s
Julli [10]

Answer:

The answer is: four salads and eight smoothies

Explanation:

If Wendy buys 2 salads and 4 smoothies for $24 she gets 8 units of utility. So every unit of utility costs Wendy $3 (=$24 / 8). Her total budget is $48, the maximum utility she can get for that budget is 16 units (=$48 / 3). Wendy can maximize he utility by buying four salads and eight smoothies that will cost her $48.

5 0
4 years ago
Jamison Company reports depreciation expense of $50,000 for Year 2. Also, equipment costing $170,000 was sold for a $6,000 gain
asambeis [7]

Answer:

$44,000

Explanation:

According to the scenario, computation of the given data are as follow:-

Depreciation on Sold Equipment

Particular                                                 Amount($)

Year 1-Accumulated depreciation         550,000

Year 2-Depreciation                                  50,000

Year 2 –Total accumulated depreciation  600,000

Less-Year 2-Reported depreciation         468,000

Depreciation on sold equipment          132,000

 

Received Cash from the Sale of Equipment

Particular                                                Amount($)

Cost of equipment                                        170,000

Less-Depreciation on sold equipment        132,000

Written down value of equipment        38,000

Add-Profit on sale of equipment                 6,000

Sale price of equipment                         44,000

8 0
4 years ago
Fair value option; bond investment; effective interest [LO12-1, 12-2, 12-3, 12-4, 12-8] Fuzzy Monkey Technologies, Inc., purchas
Scorpion4ik [409]

Answer:

debt securities investment 80,000,000 debit

            discount on debt securities    14,000,000 credit

              cash                                       66,000,000 credit

--to record the purchase of the bonds--

cash                                 3,200,000 debit

discount on debt securities 100,000 debit

                   interest revenue        3,300,000 credit

--to record first interest collection--

cash                                 3,200,000 debit

discount on debt securities 105,000 debit

                   interest revenue        3,305,000 credit

--to record secod interest collection--

<em><u>Cash flow:</u></em>

-66,000,000 purchase

+ 6,400,000 interest

net -59,400,000

<em><u>Balance sheet</u></em>

debt securities investment   80,000,000

discount on debt securities  (13,795,000)

net amount for the investment 66,205‬,000

Explanation:

As we pay the bonds lower than face value we recognize a discount.

Then, interest reveneu will be carrying value times market rate:

66,000,000  x 10% / 2 = 3,300,000 interest revenue

cash proceeds: 80,000,000 x 8% / 2 = 3,200,000

the difference will amortize the discount.

Then we do it again for the second one:

66,100,000 x 10% / 2 = 3,305,000

difference amortize the discount

We did not adjust for the fair value as we are using another method.

5 0
4 years ago
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