Answer:
Please find the detailed answer as follows:
Explanation:
a) The cost of obtaining an MBA degree for someone who is employed in a business position normally is a deductible education expense. But if the reason for taking course is to qualify her for a new trade or business then the expense will not be deductible or disallowed.
Reasons Deductible or Nondeductible
- It is to maintain or improve existing skills required in her present job. Deductible
- It is to meet the minimum educational standards for qualification in her existing job. Deductible
- It is to qualify her for a new trade or business. Nondeductible
.
- It is to meet the express requirements of her employer or the requirements imposed by law to retain her employment status. Deductible.
b) $4,000 will be allowed as deduction for qualified tuition under § 222. Except for this amount of tuition portion, Jamie must itemize to claim the deduction and it will also be subject to the 2% of AGI limitation.
Answer:
intrinsic value of SCI’s shares is $33.28 per share
Explanation:
given data
dividend (D₀) = $1.92 per share
constant rate (g) = 4.00% per year
required return (rs ) = 10.00%
to find out
intrinsic value of SCI’s shares
solution
we know that intrinsic value is here express as
intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate ) .............................1
put here value we get
intrinsic value = 
intrinsic value = 33.28
so intrinsic value of SCI’s shares is $33.28 per share
Answer:
2015 - $24,000
2016 - $0
Explanation:
The computation of profit for each year is shown below:
For 2015:
The profit = Service revenue - expenses incurred
= $72,000 - $48,000
= $24,000
For 2016:
There is no transaction to record under the accrual basis of accounting. So, the profit is zero
As in accrual basis of accounting, whether cash is received or not the transaction should be reported in the books of accounts
$175 is Amy's tax basis in the stock received in the exchange
Solution:
The principle of taxes of the owner is equal in the exchanged land,
when the company assumes responsibility.
If Amy is to sell the stock at $630,
the loss is (630-455) $175,
equivalent to $175, which is the amount of a late loss.
