Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the following revenues and expenses:Revenues$18,000ExpensesProperty taxes3,000Materials and supplies 4,500Utilities2,000Advertising5,000Insurance750Cost Recovery8,000Alex also pays mortgage interest during the year of $8000. Assume Congress passes no new tax laws between 2021 and 2026 and that there are norelevant inflation adjustments after 2021.1. Assuming the activity is a business, Alex' 2026 AGI is $ 36750and his taxable.income (ignoring the personal exemption) is $2. Assuming the activity is NOT a business, Alex' 2026 AGI is s 60000land his taxable Income (ignoring the personal exemption) is $35200

Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the following revenues and expenses: Revenues $18,000 Expenses Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Cost Recovery 8,000

Alex, single, earns wags of $42,000 in 2026. He also conducts an activity that produces the following revenues and expenses: Revenues $18,000 Expenses Property taxes 3,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 Cost Recovery 8,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Selma, an age 60 recipient of a Social Security Widow's benefit, earns $16,720 from her part-time job as a clerk in 2016. By how much will her Widow's benefit be reduced when the earnings limit is $15,720? 1. $0 2. $500 3. 4,000 4. $15720
Maria earned $250, $3,900, $8,940, $2,340, and $5,620 from her home buisiness during the last five months. What was her average monthly income during this period?
Brittany, who is an employee, drove her automobile a total of 20,000 business miles in 2022. She drove 10,000 miles in the first half of the year and 10,000 miles in the second half of the year. This represents about 75% of the auto's use. She has receipts as follows: parking(business only) $500 tolls (business only) 200 Repairs $1000 Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations, Brittany can deduct A) $0. B) $12,000. C) $11,825. D) $13,000.
Sandra earns $21,000 in employment income in 2020 and her spouse Susan earns$18,000. They have two children: Mike, who is 5 years old, and Eric, who is 9 yearsold. They spent $2,500 on after school care from 3:30 - 5:30 each day, since theywork until 5:30, and they also sent Eric to a 2-week biking training camp for $1,000where he stayed overnight in cabins.Calculate the maximum child care expense deduction the family can take.
Yolanda is a cash basis taxpayer with the following tranasctions during the year: Cash received from sales of products $70,000 Cash paid for expenses (except rent and interest) $40,000 Rent prepaid on a leased building for 18 monts beginning December 1 $48,600 Prepaid interest on a bank loan, paid on December 31 for the next 3 months 5,000 Calculate Yolanda's income from her business for this calendar year.
At the end of the first pay period of the year, Sofia earned $4,000 of salary. Withholdings from Sofia's salary include FICA Social Security taxes at the rate of 6.2%, FICA Medicare taxes at the rate of 1.45%, $500 of federal income taxes, $160 of medical insurance deductions, and $10 of life insurance deductions. Compute Sofia's net pay for this first pay period. Gross pay FICA Social Security FICA Medicare Federal income taxes Medical insurance deduction Life insurance deduction Total deductions Net pay
Bart Berman is an accrual basis taxpayer who provides marketing consulting services. His biggest client pays him $200,000 on July 1, 2015, for a two-year contract. Bart includes $200,000 in income in 2015 Bart may include $50,000 in income for 2015. $100,000 for 2016, and $50,000 in 2017 Bart may include $50,000 in income in 2015, and $150,000 in 2016 Bart includes $200,000 in income in 2016.
Tony and Lyly are married during the tax year. Tony is a botanist at Red Corporation. Tony earns a salary of $70,000 per year. Lyly owns an accounting practice as a sole proprietor (it qualifies as a full trade or business). Lyly generates $100,000 of revenues during the year. She has the following business payments associated with her firm: Utilities: $2,000 Office Rent: $15,000 Office Supplies: $1,700 Self-employed health insurance premiums: $5,000 Self-Employment Tax (hers): $10,000 Salary for her secretary: $25,000 Fines/Penalties: $2,500 State Income Tax (from business): $6,000 Payroll Taxes (secretary’s): $2,000 Meals: $1,200 (100% for 2021) Payment to officer to let her go from speeding while on her way to a client meeting $100 Lyly also contributed $6,000 into her Traditional IRA. They also have the following personal expenses during the year: Medical Expenses: $17,500 State & Local Taxes (personal): $11,000 Federal Income Tax Payments (personal): $7,000 Cash…
Jordan took a business trip from New York to Denver. She spent two days in travel, conducted business for nine days, and visited friends for five days. She incurred the following expenses: Airfare $ 440 Lodging 2,400 Meals 600 Entertainment of clients 480 Required: How much of these expenses can Jordan deduct? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar value.)
Jenny receives an annual salary of $51,000 plus a 10 percent commission on all sales during the year in excess of $200,000. Her sales for the year total $420,000. What do her total earnings amount to ?