6. A and B, two individuals, purchased a house "H" as joint (50%) owners, for $500,000. A and B agreed they wouldrent the house and share income and losses 50/50. In 2022, they rented the house for 100 days and received rents of$20,000. In addition, in 2022, B used the house for personal use for 20 days. A did not use the house in 2022. In2022: (i) the real estate taxes on H were $6,000, the mortgage interest paid on H was $12,000, and (iii) maintenancecosts were $9,000.Assuming A is a single 35 year old, who earns a $110,000 salary, and had no other transactions,a. What is A's adjusted gross income ("AGI") in 2022?b. What is A's taxable income in 2022?

The objective of the question is to calculate A's adjusted gross income (AGI) and taxable income for…

Answered: 6. A and B, two individuals, purchased…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Taylor and Tanner formed a partnership. Taylor contributed $50,000 in cash. Tanner contributed land and buildings he purchased for $50,000 some time ago. His tax basis in the property is now $30,000, although it was recently appraised for $70,000. There is a $15,000 mortgage attached to the building that the partnership will assume. What is the amount of Tanner’s capital account after his contribution? a. $50,000 b. $30,000 c. $35,000 d. $55,000
Paco and Rabanne formed a partnership on January 1, 2019 with a profit and loss agreement of 4:2. Paco invested Cash of P500,000 and Equipment with cost of P200,000 while Rabanne invested Cash of P 650,000 and a parcel of land that had an original cost of P 1,580,000. The land had a market value of P 1,800,000 when Rabanne inherited it three years ago. Currently, the land is independently appraised at P 2,500,000. However, Rabanne insisted that the land be recorded at P 5,000,000. Under the full investment approach, how much will be the recorded capital of Rabanne?
On May 1, 2022, Carlo and Jamie formed a partnership by contributing P500,000 each. In addition to Carlo's cash contribution, he invested furniture and fixtures costing P150,000 but with an agreed value of P80,000. Moreover, Jamie invested land with a fair value of P1,200,000 but with professional appraiser's value of P1,110,000 subject to unpaid mortgage of P250,000. Profit or loss is to be shared equally between the partners. How much will be the total capitalization of the partnership after the investment of Carlo and Jamie?
Required information [The following information applies to the questions displayed below.] Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $104,000 and qualified business income of $11,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $205,000 and they sold it for $255,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,700 of itemized deductions, and they had $4,000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate…
Identifying Current Assets and Liabilities Dunn Sporting Goods sells athletic clothing and footwear 10 retailcustomers. Dunn's accountant indicates that the firm's operating cycleaverages 6 months. At December 31, 2019, Dunn has the following assetsand liabilities: a. Prepaid rent in the amount of 58,500. Dunn's rent is $500 permonth.b. A $9,700 account payable due in 45 days.c. Inventory in the amount of $46,230. Dunn expects to sell $38,000 ofthe inventory within 3 months. The remainder will be placed instorage until September 2020. The items placed in storage shouldbe sold by November 2020.d. An investment in marketable securities in the amount of $1,900.Dunn expects to sell $700 of the marketable securities in 6 months.The remainder are not expected to be sold until 2022. e. Cash in the amount of $1,050.f. An equipment loan in the amount of $60,000 due in March 2024.Interest of $4,500 is due in March 2020 ($3,750 of the interestrelates to 2019. with the remainder relating to the…
F25.
On January 1,2020, Carlo and Jamie formed a partnership with investments of P160,000 and P240,000 respectively. The partnership operations resulted to a net loss amounting to P80,000 at the end of year 2020. But the business was able to generate for the year 2021, its second year of business operation, a net profit after tax of P120,000. Profits and losses are to be shared equally. How much is the capital balance of Carlo as of December 31, 2021 as reflected in the statement of changes in partners' equity?
Mr. and Mrs. Zikalasa, both resident citizens, had the following data on the death of Mr. Sta Cruz in 2019: Exclusive property of husband, P2,720,000 Exclusive property of wife, P1,250,000 Conjugal property of couple, P4,800,000 Ordinary deduction on property of husband, P1,290,000 Ordinary deduction on property of wife, P560,000 Ordinary deduction on conjugal property of couple, P1,300,000 How much is the gross estate?
2. On January 1, 2022, C and D form an equal partnership to which C contributes machinery with a tax basis of (a) $2,000 and a fair market value of (b) $3,000. D contributes cash of (b) $3000 The machinery is being depreciated on a straight-line basis and has a remaining life of five years. The partnership also has ordinary income of (c) $280 A. Using the traditional method, determine the tax basis and Sec. 704(b) book basis depreciation for C and D for Year 1. Depreciation Depreciation Ordinary income Tax Tax C с Book B. Assume, instead, that the basis of the equipment contributed by C is only (d) $800 at the time of contribution. All the other facts are the same. Using the traditional method with curative allocations, determine the tax basis and Sec. 704(b) book basis depreciation for C and D for Year 1. Also, show the allocation of the ordinary income to C and D for the current year. Tax Book D Tax Book D Book
Please help me complete part B
In 2020, Fred invested $155,000 in a general partnership. Fred's interest is not considered to be a passive activity. If his share of the partnership losses is $108,500 in 2020 and $75,950 in 2021, how much can he deduct in each year? Fred can deduct $fill in the blank 1 in 2020 and $fill in the blank 2 in 2021.

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