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Bogdan [553]
2 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]2 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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Which of the following definitions describes the term electroncution
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A reflex response to the passage of electric current through the human body and results when electric current enters the body at one point and leaves through another.
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2 years ago
Which of the following phrases describes money?
lakkis [162]
The phrases that describes money the best would be: Medium of exchange

Before money were made, in order to obtain a product that we don't own,  we need to exchange it with another product that we own. This system is commonly known as barter.

With money, we can obtain a product that we don't own without exchanging it with anything. This function is the reason why money is called medium of exchange
6 0
3 years ago
Read 2 more answers
three-fourths of the burden, and sellers bear one-fourth of the burden. b. one-half of the burden, and sellers bear one-half of
zubka84 [21]

The correct option is: For each unit of the good that is sold, buyers bear <u>one-half of the tax burden and sellers bear one-half of  the tax burden.</u>

<u>Explanation</u>:

Incidence of tax is a term referred in economics which deals with division of taxes. Tax incidence refers to division of tax among the buyer and seller for a product. The tax incidence is related to the price elasticity of supply and demand.

When a product is sold, the buyer of the product is charged with one-half of the tax burden and the seller of the product bears the other-half of the tax burden.

The incidence of tax can be observed in two ways:

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7 0
3 years ago
Louis owns an import business. After traveling to France on numerous occasions, he developed a taste for fine French wines. A ra
leva [86]

Answer:

B) French wines will become more expensive in the United States.

Explanation:

When rate of dollar falls to that of euro, the same number of dollars will purchase fewer French goods, so French goods become more expensive to American consumers. If one travels to Europe (including France), one will exchange one dollar for less than one euro

4 0
3 years ago
Rizzo Manufacturing produces two types of cameras: 35mm and digital. The cameras are produced using one continuous process. Four
tiny-mole [99]

Answer:

Total overhead assigned to each the 35mm camera $ 66,000

An Activity Rate for receiving   $8 per receiving order

Receiving costs for 35mm camera  $1600

An Activity Rate for packing $ 10 per packing order

Explanation:

Product Machine Hours Setups Receiving Orders Packing Orders

35mm         10,000             100           200                  400

Digital            10,000          250          800                  2000

Cost            $60,000        $40,000    $8,000           $24,000

Total Overhead Costs= $ 60,000 + $ 40,000 + $ 8000+ $ 24,000= $132,000

Total overhead assigned to each the 35mm camera=( Total Costs/Total Machine Hours) * 35mm camera machine hours

Total overhead assigned to each the 35mm camera= ($ 132,000/ 20,000)10,000= $ 66,000

An Activity Rate for receiving based on receiving orders= 8000/1000=  $8 per receiving order

Receiving costs for 35mm camera= 8 * 200= $1600

An Activity Rate for packing based on packing orders = 24000/ 2400= $ 10 per packing order

5 0
3 years ago
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