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a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150? (Answer for both the actual expense method and the simplified method.) c. Given the original facts, what is Rita's AGI for the year? d. Given the original facts, what types and amounts of expenses will she carry over to next year? Answer is not complete. Complete this question by entering your answers in the tabs below. Required a Required b Required c Given the original facts, what types and amounts of expenses will stie carry over to next year? Tier 1 expenses carried over to next year Tier 2 expenses carried over to next year Tier 3 expenses carried over to next year Required d < Required c Required 3

a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150? (Answer for both the actual expense method and the simplified method.) c. Given the original facts, what is Rita's AGI for the year? d. Given the original facts, what types and amounts of expenses will she carry over to next year? Answer is not complete. Complete this question by entering your answers in the tabs below. Required a Required b Required c Given the original facts, what types and amounts of expenses will stie carry over to next year? Tier 1 expenses carried over to next year Tier 2 expenses carried over to next year Tier 3 expenses carried over to next year Required d < Required c Required 3

FINANCIAL ACCOUNTING
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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a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150? (Answer for both the actual expense method and the simplified method.) c. Given the original facts, what is Rita's AGI for the year? d. Given the original facts, what types and amounts of expenses will she carry over to next year? Answer is not complete. Complete this question by entering your answers in the tabs below. Required a Required b Required c Given the original facts, what types and amounts of expenses will stie carry over to next year? Tier 1 expenses carried over to next year Tier 2 expenses carried over to next year Tier 3 expenses carried over to next year Required d < Required c Required 3
Transcribed Image Text:a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150? (Answer for both the actual expense method and the simplified method.) c. Given the original facts, what is Rita's AGI for the year? d. Given the original facts, what types and amounts of expenses will she carry over to next year? Answer is not complete. Complete this question by entering your answers in the tabs below. Required a Required b Required c Given the original facts, what types and amounts of expenses will stie carry over to next year? Tier 1 expenses carried over to next year Tier 2 expenses carried over to next year Tier 3 expenses carried over to next year Required d < Required c Required 3
it waw HIL Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $6,060. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes Interest on home mortgage Operating expenses of home Depreciation Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita's consulting business generated $16,150 in gross income. Note: Leave no answer blank. Enter zero if applicable. $ 1,830 5,445 915 1,738 Required: a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150? (Answer for both the actual expense method and the simplified method.) c. Given the original facts, what is Rita's AGI for the year? d. Given the original facts, what types and amounts of expenses will she carry over to next year? Answer is not complete. Complete this question by entering your answers in the tabs below. Required a Required b Required c Required d Can the rainal farte what tune and aminte nf avnaneor will cha raru ar to navt unar < Prev 5 of 5 ⠀ Next >
Transcribed Image Text:it waw HIL Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $6,060. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes Interest on home mortgage Operating expenses of home Depreciation Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita's consulting business generated $16,150 in gross income. Note: Leave no answer blank. Enter zero if applicable. $ 1,830 5,445 915 1,738 Required: a. What is Rita's home office deduction for the current year? b. What would Rita's home office deduction be if her business generated $11,150 of gross income instead of $16,150? (Answer for both the actual expense method and the simplified method.) c. Given the original facts, what is Rita's AGI for the year? d. Given the original facts, what types and amounts of expenses will she carry over to next year? Answer is not complete. Complete this question by entering your answers in the tabs below. Required a Required b Required c Required d Can the rainal farte what tune and aminte nf avnaneor will cha raru ar to navt unar < Prev 5 of 5 ⠀ Next >
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