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Bogdan [553]
3 years ago
11

Priscella pursued a hobby of making bedspreads in her spare time. Her AGI before considering the hobby is $40,000. During 2019 s

he sold the bedspreads for $10,000. She incurred expenses as follows: Supplies, $4,000; Interest expense on loan to get business started, $500; Advertising expense, $6,500. Assuming that the activity is deemed a hobby, how should she report these items on her tax return
Business
1 answer:
daser333 [38]3 years ago
7 0

Answer:

  • Income = $10,000
  • Adjusted Gross Income (AGI) Deduction = $0
  • Claim $10,000 as itemized deduction due to expenses

Explanation:

The activity being a hubby does not exempt it from tax so the $10,000 will be included as income for tax purposes and there will be no deduction for this from the AGI.

She can however, claim her expenses as itemized deductions. There is no tax on interest payment so expenses deducted are:

= 4,000 + 6,500 - 500

= $10,000

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Sadie contracted with Sean, who agreed to replace the carpets in her house. Sean damaged some of the walls when he installed the
denpristay [2]

Answer:

Letter d is correct. A waiver of breach

Explanation:

In this situation Sadie filed a waiver of the violation. This occurs when the contractor waives his legal rights in respect of any breach of contract. As was the case with Sean, a contract to replace Sadie's carpeting, which consequently damaged some of its walls, resulting in poor contract performance.

7 0
4 years ago
Marsden Company has three departments occupying the following amount of floor space: Department 1 15,000 sq. ft. Department 2 10
PolarNik [594]

Answer:

the store rent that should be allocated in department 3 is $100000

Explanation:

if we assume that we charge the rent per square feet occupied, then we can say

department rent = charge per square feet* number of square feets

r = k*sf

also if

total rent = rent department 1 + rent department 2  + rent department 3

r total = r1 + r2 + r3 = k*sf1 + k*sf2 + k*sf3 = k*( sf1 + sf2 + sf3)

k= r total / ( sf1 + sf2 + sf3)

replacing values

k = $200000/(15000 sq.ft + 10000 sq.ft +25000 sq.ft ) = $ 4 per sq.ft

thus for department 3

r3 = k* sf3= $ 4 per sq.ft * 25000 sq.ft = $100000

rent department 3 = $100000

8 0
3 years ago
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation
Zolol [24]

Answer:

Tv = 1772

Remote = 144

Installation = 144

Explanation:

To calculate stand-alone selling price we need to calculate the percentage of Fair market value first and then allocate the Entire package price in the products according to the percentage of fair market value.

Percentage of the fair market value of each product

Product             Fair Value               Percentage

TV                         $1830                      86%    

Remote                 $140                        7%

Installation            $140                         7%

Total                      $2,110                      100%

Stand-alone selling price

Product            % of fair market value            Stand-alone selling price

TV                                    86%                                   1772

Remote                             7%                                     144

Installation                       7%                                      144

Total                               100%                                   2,060                              

7 0
3 years ago
Consider a bank balance​ sheet, with​ "Assets" on the left and​ "Liabilities" on the right side. Identify where the following it
Anvisha [2.4K]

Answer:

C. ​I: assets;​ II: liabilities.

Explanation:

Assets are the physical and intangible properties of business or individual. They are resources used in generating revenues or profits for a business. Assets add value or increase the capital of a company.  Examples of assets include cash, inventory, investments, office equipment, and plant and machinery.

Liabilities are debts or obligations that a firm or individual owe to other entities or individuals. Liabilities decrease the net value of a company. Examples of liabilities include Bank debt, money owed to suppliers (accounts payable), Wages owed,  and Mortgage debt.

Cash belonging to a bank but held in another bank account is, therefore, an asset, while money borrowed is a debt, hence a liability.

7 0
4 years ago
Which of the following factors has been shown to be a cause of HIGH levels of absenteeism in a firm?
hram777 [196]

Answer:

d. Work-life balance issues

Explanation:

When people have work-life balance issues then the chances are high that there will be more number of absenteeism in a firm. Work-life balance is one the important domain which needs to addressed in order to make workers productive and effective at the workplace. It is simply not possible that if one employees is having some issues at home and he will be productive at the workplace. How is this possible that if an employees wife is hospitalized and he is present at work and doing his work with motivation, devotion and focus, consequently, an organization should consider their employees family related issues as well in order to make them more effective and productive.

5 0
4 years ago
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