ap 3 please help..... deductions Calvin should report for 2021 with respect to the rabbit raising activities?More infoXItemAmountSale of rabbits for breeding stock$700Prizes and awards330Property taxes on rabbit hutches(190)Feed(620)Veterinary fees(540)Depreciation on rabbit hutches(380)Done Calvin, a dentist, raises prize rabbits for breeding and showing purposes. Assume that the activity is determined to be a hobby. During 2021, the activity generatesthe following items of income and expense:(Click the icon to view the data.)Read the requirements.1 Requirement a. What is the total amount of income and deductions Calvin should report for 2021 with respect to the rabbit raising activities?BCalvin's total income is9 Calvin's total deduction is455esti1)94/1D/1)

Calvin's Income Sale of rabbits for breeding stock$700Prizes and awards$330Total Income: $700 +…

Answered: deductions Calvin should report for…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 6P: Teresa is a civil engineer who uses her automobile for business. Teresa drove her automobile a total...

See similar textbooks

Similar questions

ANA operates a pet shop and at the same time offers interior design services to her clients. The following data were provided by ANA for 2020 taxable year: Pet Shop Gross sales, P1,800,000 Cost of sales, P600,000 Operating expenses, P200,000 Interior design services Gross receipts, P1,150,000 Cost of direct services, P120,000 Operating expenses, P80,000 Required: How much is her taxable income for 2020 ? How much is her income tax payable for the year ? Assuming ANA signifies her intention to be taxed at 8% income tax rate on her initial quarterly income tax return, how much is her income tax liability for the year ?
During 2021, Garth has a job as a civil engineer where he earns a salary of $120,000. He also has done some tree cutting work on his own, where he has earned a net income of $70,000. What are Garth's total employment (aka FICA) taxes for the year? And, what is the amount and description of the for AGI deduction associated with this calculation? In the text box that follows, please bold your answer at the top and include supporting work afterwards so that I can award partial credit. Edit View Insert Format Tools Table 12pt v Paragraph v |BIU A 2 Tv:
Professor Terrence, from the English department at BMCC, incurred $350 dollars in educational expenses during 2019. He purchased supplies that were used by his students during the academic year. Please advice Prof. Terrence if his educational expenses qualifies as a deduction for Adjusted Gross Income (AGI) ? Guiding Hints/Questions: who qualifies for educational expenses deductions? - what is the limitations, if any?
2. Fauzana owns a business that makes and sells pets clay. During the financial year ended 31 July 2020, she incurred the following items of expenditure. State whether each of the below is Capital Expenditure or Revenue Expenditure. a. Clay for making the pets toys. b. Wages of sales staff Purchase of potters wheel for use in the business C. d. Installation costs for the potters wheel e. Wages of staff operating the potters wheel Redecoration of store room Payment of extra wages to own staff for f. g. fitting the alarm and cctv Payment of architect fees for designing the proposed new shop Purchase of new telephone system for the business
For tax year 2023Cindy has work-related dependent care expenses of $3,200 for the care of one qualifying person, and work-related dependent care expenses of $3,800 for another qualifying person. What amount of these work-related expenses may Cindy use when figuring the Child and Dependent Care Credit? A) $2,800 B) $3.000 C) $7,000 D) $6,000
Required: Discuss the following, including showing workings where appropriate (citing authority): Sonia's deductions regarding the laptop for the current 2023-24 tax year; and Tania's deduction for the lounge for the current 2023-24 tax year For both Sonia and Tania, where there is a choice of methods in calculating the deductions, use the method that will give the highest deductions for the tax year. Sonia is an employee accountant who buys a laptop for $1000 on 1 March 2024. She uses it 70% for work purposes, 10% for playing games and 20% for her studies (she is currently studying for her CPA qualifications). A month after owning this laptop Sonia accidentally dropped it and cracked its screen. Subsequently, on 1 April 2024 she pays $500 to have the screen replaced with a new screen that is of much higher resolution than the original one of the laptop. The effective life of the laptop is 3 years. Sonia’s friend Tania runs a small business (as a sole trader) with an aggregated…
. Paul is a self-employed investment adviser who uses his automobile for business. Paul drove his automobile a total of 20,000 miles during 2019; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,200. a. How much is Paul's transportation deduction based on the standard mileage method? b. How much is Paul's transportation deduction based on the actual cost method? c. Which method should Paul use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? d. Where should he deduct the transportation expense on his current year tax return?
Veronica mows lawns during the summer. In 2021 she was paid directly by homeowners for her work, in some case on the basis of the completed job, in other cases at an hourly rate. Her friend Jonathan does the same work. However, he is paid at an hourly rate by a lawn maintenance company. Which of the following statements is correct? Veronica earns business income and Jonathan earns employment income. Veronica will be able to deduct more expenses than Jonathan Veronica and Jonathan both earn employment income Veronica earns business income and Jonathan earns employment income. Their deductible expenses will be the same Veronica and Jonathan both earn business income
Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10 b. Julie paid $5,650 to the day care center and her AGI is $52,600 (all salary). Child and dependent care credit
Compute Mary’s income or deductions for 2020 using (1) the cash basis and (2) the accrual basis for each of the following. In May 2020, Mary paid a license fee of $1,200 for the period June 1, 2020, through May 31, 2021. In December 2020, Mary collected $10,000 for January 2021 rents. In January 2020, Mary collected $2,000 for December 2020 rents. In June 2020, Mary paid $7,200 for an office equipment service contract for the period July 1, 2020, through December 31, 2021. In June 2020, Mary purchased office furniture for $273,000. She paid $131,000 in cash and gave a $142,000 interest-bearing note for the balance. The office furniture has a MACRS cost recovery period of seven years. Mary did not make the § 179 election and elected not to take additional first-year depreciation.
Kenen Wiseman is an employee of Dimenionworks Designs in New Mexico. She received the following achievement awards from her employer during 2019: Best safety plan: Santa Fe County: $1,460 To emergency plan layout, New Mexico: $1,925 Ten-year employee award: $815 The achievement awards are eligible under qualified plan. Required: How much of her achievement award income is taxable?
LSG Company is a calendar year, cash basis taxpayer. On November 1, 2021, LSG paid $9,450 to the janitorial service that cleans their offices. How much of this expenditure can LSG deduct in 2021 assuming that: The expenditure is a prepayment for 6 months of cleaning services from November 2021 through April 2022? _____________________________________________________________________________________ _____________________________________________________________________________________ The expenditure is a prepayment for 18 months of cleaning services from November 2021 through April 2023? _________

SEE MORE QUESTIONS

Recommended textbooks for you

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SEE MORE TEXTBOOKS