Akiko, a single taxpayer, incurred higher-than-expected expenses in her active business in 2020. In addition, the economy moved into a mild recession, so her revenues were lower than in last year. Her deductible expenses totaled $2,400,000, and her taxable revenues totaled only $2,000,000. She materially participates in this business, but she also receives $320,000 in interest on a portfolio of long-term bonds. Akiko predicts that her business will break even next year and that her interest income will not change. What will be Akiko's adjusted gross income in 2020 and 20217 In 2020, Akiko's AGI is and in 2021, Akiko's AGI is

Akiko, a single taxpayer, incurred higher-than-expected expenses in her active business in 2020. In addition, the economy moved into a mild recession, so her revenues were lower than in last year. Her deductible expenses totaled $2,400,000, and her taxable revenues totaled only $2,000,000. She materially participates in this business, but she also receives $320,000 in interest on a portfolio of long-term bonds. Akiko predicts that her business will break even next year and that her interest income will not change. What will be Akiko's adjusted gross income in 2020 and 20217 In 2020, Akiko's AGI is and in 2021, Akiko's AGI is

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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Richard Hartman, age 29, single with no dependents, received a salary of $62,670 in 2020. During the year, he received $1,300 interest income from a savings account and a $1,500 gift from his grandmother. At the advice of his father, Richard sold stock he had held as an investment for five years, for a $3,000 gain. He also sustained a loss of $1,000 from the sale of land held as an investment and owned for four months. Richard had itemized deductions of $15,000. For 2020 compute the following for Richard: d. Income tax before credits and prepayments Please answer this D part. Thank you!
Christina had a $12,000 gain on the sale of stock purchased three years ago, a $4,000 loss on selling stock she had only owned for 3 months, a $5,000 loss on the sale of her personal use auto, and a $5,000 loss from the sale of land used in her business (owned for six years). Chris had no other property transactions this year. What will be the net effect of these transactions on Chris' tax return, in terms of gains and/or losses?
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