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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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Answer:

b. decrease Amazon sales

Explanation:

Note: <em>"</em><em>Options the question is attached as picture below"</em>

In 2016, Amazon began charging a 5.75% sales tax on products it sells in the District of Columbia. If we hold all else equal, the effect of this tax would be <u>to decrease Amazon Sales</u> In the District of Columbia.

This action will consequentially increase the sales in local Market and then discourage online shopping along with it In Columbia district; it will decrease sales overall.

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3 years ago
Blue Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $156,000 to manuf
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Answer:

See the journal entries below.

Lease receivable = $235,757.58

Explanation:

Before the journal entries are prepared, the present value of the annual rentals or lease receivable is first calculated using the formula for calculating the present value of an ordinary annuity due since the annual rentals is payable each December 31, beginning December 31, 2019 as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) …………………………………. (1)

Where;

PV = Present value annual rentals or lease receivable = ?

P = Annual rentals = $52,800

r = Interest rate = 6%, or 0.06

n = number of years the lease agreement covered = 5

Substitute the values into equation (1), we have:

PV = $52,800 * ((1 - (1 / (1 + 0.06))^5) / 0.06) * (1 + 0.06)

PV = $235,757.58

The journal entries will now look as follows:

<u>Date            Account Tittle                             Debit ($)            Credit ($)     </u>

31-Dec-19    Lease Receivable                   235,757.58

                   Cost of Goods Sold                156,000.00

                   Sales Revenue                                                       235,757.58

                   Inventory                                                                156,000.00

<u><em>                    (To record the lease.)                                                                  </em></u>

31-Dec-19   Cash                                            52,800.00

                  Lease Receivable                                                   52,800.00

<em><u>                   (To record the receipt of lease payment.)                                  </u></em>

7 0
3 years ago
Martin Services Company provides their employees vacation benefits and a defined contribution pension plan. Employees earned vac
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Answer:

Explanation:

a. Provide the journal entry for the vacation pay

Employees earned vacation pay of $39,500 for the period.

                                                       Debit                   Credit

Vacation pay expense A/C          $39,500

Vacation payable A/C                                                $39,500

<em>(Being vacation pay accrued for periods) </em>

b. Provide the journal entry for the pension benefit.

9% of employee salaries and the salaries were $750,000

=> The pension plan requires a contribution to the plan administrator:  $750,000*9% = $67,500

                                                        Debit                   Credit

Pension expense                          $750,000

To cash A/C                                                                   $67,500

To unfunded pension liabilities                                   $683,500          

Hope it will find you well.        

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Answer:

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Answer:D

Explanation: Can not always. A fact is evidence.

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