Don operates a tax business, and this year one of his taxis was damaged in a traffic accident. The tax was originally purchased for $23,000, and the adjusted basis was $1700 at the time of the accident. The tax was repaired at a cost of $2.650 and insurance reimbursed Don $718 of this cost. What is the amount of Don's casualty loss deduction? Mutiple Choice O O O $902 $2.650 $1,932 $1700 Don is not eligible for a casualty loss deduction

Don operates a tax business, and this year one of his taxis was damaged in a traffic accident. The tax was originally purchased for $23,000, and the adjusted basis was $1700 at the time of the accident. The tax was repaired at a cost of $2.650 and insurance reimbursed Don $718 of this cost. What is the amount of Don's casualty loss deduction? Mutiple Choice O O O $902 $2.650 $1,932 $1700 Don is not eligible for a casualty loss deduction

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

Barry Kline, age 45, is an unmarried taxpayer. During the current tax year he had received wages of $45,000. Barry also paid his ex-wife alimony from a 2021 divorce of $9,000. Barry has no dependents had itemized deductions of $7,500. Compute the amount of his taxable income. Adjusted Gross Income? Standard Deduction? Taxable Income?
On January 1, 2018, Logan’s wife, Irma, died while giving birth to a child, but the child survived. Logan took care of the child bringing him wherever he was assigned. If Logan is a resident citizen, how much personal and additional exemptions could Logan avail of when he files his Income tax return for 2018 income? P25,000 P50,000 none P75,000 A taxpayer engaged in manufacturing operations bought a machine with a salvage value of P50,000 and estimated useful life of 5 years for P650,000. What is the carrying value of the machine after 2 years of operation under the sum-of-the-Year-Digit Method? P290,000 P240,000 P190,000 P250,000 Assuming Ana is a VAT-registered taxpayer, how much is her total income tax expense assuming she opted to be taxed at 8% income tax rate? P321,500 P342,500 P351,500 P358,000
Alicia sold her personal residence to Rick for $300,000. Before the sale, Alicia paid the real estate tax of $4,380 for the calendar year. For income tax purposes, the deduction is apportioned as follows; $2,160 for Alicia and $2,220 for Rick. What is Ricks basis in the residence?
During the current year, Kristina, a single taxpayer with no dependents, has a salary of $130,000. She has the following income and (losses) from passive activities in 2021: Rental House ($28,850) Restaurant ( 3,900) Golf Course 7,800 Kristina has suspended loss carryforwards into 2021 of ($2,500) on the rental house and ($11,400) on the restaurant. She has a gain of $6,700 from selling the restaurant in 2021. She actively manages the rental house and is the sole owner. 1. What is Kristina's AGI in 2021? 2. What, if any, are Kristina's suspended loss carryforwards by activity? If she does not have any, explain why. 3. Assume Kristina has no deductions For AGI, no qualified business income, and takes the standard deduction; what is her federal income tax liability for 2021?
Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What amount of the airfare is deductible in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) b. On the trip, she spent eight days on personal activities and two day(s) on business activities. Deductible amount
Peter has total income of $54000. He has employment expenses of $18000, made a $5000 RRSP contribution and incurred $4000 in tuition expenses for his daughter, who did not work and is a freshman at a local community college. He has a basic personal basic amount of $12298 and his marginal tax rate is 26%. Compute Ralph's taxable income for the current year.
Mang Carlo is a balut vendor. For the taxable year year, he earned 180,000 from selling balut. Mang Carlo also operates a water refilling station. His income from this activity for the taxable year is 200,000. He also lends money to his neighbors and friends in which activity he earned 50,000 interest income for the taxable year. How much income is non-taxable? How much is the total income subject to regular income tax? How much income is subject to final tax?
During the tax year, Monica incurred one personal casualty loss due to a federally declared disaster. The amount of the loss after reimbursements is $8,025. Monica will not be replacing any of the damaged property. Monica's adjusted gross income is $50,000. What is the amount of the casualty loss deduction to report on Schedule A (Form 1040)? $2,925 $3,025 $7,925 $8,025
Kimberly is a self-employed taxpayer. She recently spent $3,300 for airfare to travel to Italy. What amount of the airfare is deductible in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) a. Her trip was entirely for personal purposes. Deductible amount
Which of the following taxpayers may report the sale of their property as an installment sale? (a) Franklin. He sold a tractor to Roberto for $9,000. Roberto made two payments, one payment of $3,500 on May 15 and one payment of $5,500 on September 15 of the tax year. Franklin paid $7,000 for the tractor when it was new; it had fully depreciated before he sold it. (b) Janet. She sold her entire inventory, valued at $8,000, to Marvin for $12,000. Marvin intends to pay Janet $4,000 per year, plus interest, for the next three years. (c) Juan. He sold a plot of land for $50,000. He purchased the land for $45,000 and paid $10,000 to improve it. His buyer intends to pay for the land over five years. (d) Sara. She sold a rental condominium for $125,000. She purchased it for $90,000 and had claimed $20,000 in depreciation. Her buyer intends to pay her $20,000 per year plus 6% interest for five years.
Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a.$7,000 gain b.$3,000 loss c.$13,000 loss d.$2,000 gain
Lauren’s Construction Company is a calendar year taxpayer. In 2010, a hurricane destroyed three of Lauren’s truck with a $1,250,000 aggregate adjusted tax basis. On October 12, Lauren received a $3,500,000 reimbursement check from its insurance company. On May 19, 2011, Lauren purchased new trucks for $4,250,000. Compute Laurens’s realized gain or loss on the involuntary conversion and its tax basis in the new trucks. a. $0 realized gain; $1,250,000 basis in the trucks. b. $2,250,000 realized gain; $4,250,000 basis in the trucks. c. $1,250,000 realized gain; $1,250,000 basis in the trucks. d. $2,250,000 realized gain; $2,000,000 basis in the trucks. e. None of the above