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frosja888 [35]
3 years ago
15

Luke is an ordained minister. Luke's salary from his employing church last year was $31,000. The church did not designate any of

his salary as housing allowance. Luke spent $10,000 to rent his home last year. How much of Luke's salary must be included when figuring net income for self-employment tax
Business
1 answer:
nirvana33 [79]3 years ago
7 0

Answer

$31,000

Explanation:

(c) $31,000

Explanation:

As per IRS for Earnings of Clergy, A licensed, commissioned, or ordained minister who performs ministerial services as an employee may be able to exclude from gross income the fair rental value of a home provided as part of compensation (a parsonage) or a housing allowance provided as compensation if it is used to rent or otherwise provide a home. In order to be able to exclude the housing allowance from income, the minister's employing organization must officially designate the housing allowance as such before paying it to the minister.The fair rental value of a parsonage or the housing allowance is excludable only for income tax purposes, and not for Self-employment tax purpose.

In the given case, the church did not designate any of Luke's salaries as a housing allowance. Hence it is not deductible from Gross Income for Income Tax Purposes and irrespective of designation or not, it is not deductible for self-employment tax.

Thus, Full salary of Luke i.e $31,000 must be included when figuring net income for self-employment tax.

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MAVERICK [17]

Answer:

$1,295.03

Explanation:

To find the answer, we will use the present value of an annuity formula:

PV = A ( 1 - (1 + i)^-n) / i

Where:

  • PV = Present Value of the investment (in this case, the value of the loan)
  • A = Value of the Annuity (which will be our incognita)
  • i = interest rate
  • n = number of compounding periods

Now, we convert the 7.9 APR to a monthly rate. The result is a 0.6% monthly rate.

Finally, we plug the amounts into the formula, and solve:

75,500 = A (1 - (1 + 0.006)^-72) / 0.006

75,500 = A (58.3)

75,500 / 58.3 = A

1,295.03 = A

Thus, the monthly payments of the car loan will be $1,295.03 each month.

8 0
3 years ago
While the personal computer industry is flooded and growing with laptops and tablets, Malik recently bought a desktop, his first
kolezko [41]

Answer:

A: Laggards.

Explanation:

  • Willingness of customers to try out new products.

There are 5 types of adapters, identified by Sociologist Evrett Roger in 1962:

  1. Laggards.
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  3. Early majority.
  4. Category captains.
  5. Late majority.

Laggards: These are those customers who adopt to new ways slowly, after those ways would have become normal for the world.

  • Such as malik realized the essential need for laptop lately, however the market was filled with the product.
6 0
3 years ago
James is in the process of purchasing a new home. he is going back and forth with the sellers over the one issue of the selling
uranmaximum [27]

The sellers and the buyer are engaging in a positional negotiation.

 

<span>A positional bargaining is a strategy in negotiating which involves insisting a fixed price and not bending it to the other. Both negotiators will argue for what they want and not anything else (in this case: the price), without considering the motives of both parties.</span>

7 0
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Cassandra is part of a team at ABC Products. In her team meetings, at times, she understands and follows the discussion and othe
disa [49]

Answer:

e. Interaction attentiveness

Explanation:

Since in the question it is mentioned that cassandra who is a part of the team. In her team meeting, she understands and takes the follow up. So here the interaction attentiveness should be considered as she have a close attention also at the same time she is alert

Therefore the option e is correct

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An article in the Wall Street Journal noted that the demand for video Internet advertising was increasing at the same time that
Nuetrik [128]

Answer:

Option C is correct

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