Module 4: Chapter 10 HomeworkExercise 10-15 (Algorithmic) (LO. 2)Barbara incurred the following expenses during 2022: $2,290 dues at a health club she joined at the suggestion of her physician to improveher general physical condition, $460 for multiple vitamins and antioxidant vitamins, $5,050 for a smoking cessation program, $545 fornonprescription nicotine gum, $2,260 for insulin, and $8,365 for funeral expenses for her mother who passed away in June. Barbara's AGIfor 2022 is $37,500.Which of these expenses may be included in computing the medical expense deduction? Select "May be included" or "May not be included",whichever is applicable.a. $2,290 dues at a health club she joined at the suggestion ofher physician to improve her general physical conditionb. $460 for multiple vitamins and antioxidant vitamins$5,050 for a smoking cessation program$545 for nonprescription nicotine gum$2,260 for insulinf. $8,365 for funeral expensesC.d.e.What is Barbara's medical expense deduction for 2022?If required, round your computations to the nearest dollar.4,497.50 XMay not be includedMay not be includedMay be includedMay not be includedMay be includedMay not be included

All taxpayers are to deduct their qualified unreimbursed medical care expenses that exceed 7.5% of…

Answered: Exercise 10-15 (Algorithmic) (LO. 2)…

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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Problem 10-24 (LO. 2) Paul, suffers from emphysema and severe allergies and, upon the recommendation of his physician, has a dust elimination system installed in his personal residence. In connection with the system, Paul incurs and pays the following amounts during 2020: Doctor and hospital bills $4,500 Dust elimination system 10,000 Increase in utility bills due to the system 450 Cost of certified appraisal 300 In addition, Paul pays $750 for prescribed medicines. The system has an estimated useful life of 20 years. The appraisal was to determine the value of Paul's residence with and without the system. The appraisal states that his residence was worth $350,000 before the system was installed and $356,000 after the installation. Paul's AGI for the year was $50,000. a. What is the total of Paul's qualifying medical expenses for 2020?$fill in the blank 1 b. What is his medical expense deduction for 2020?$fill in the blank 2
Dave Collins and Christie Collins have two children, Ben, age 14, and Cody, age 20. The medical expenses and net income for each member of the family for 2022 is as follows: Medical expenses Net income Aras $ 2,000 $100,000 Kelly 3,000 40,000 Ben 600 500 Cody 12,000 9,000 All of the medical expenses were paid by Aras in the 12-month period ending December 31. Determine the maximum medical expense credit for 2022.
Aaron, age 55, has an adjusted gross income in 2014 of $30,000. His expenses are as follows: Non-prescription medicine $100 Prescription medicine $500 Doctor visits $500 Weekly meal preparation for a diet plan $2,000 Removal of a benign facial mole $400 Contact lenses $500 Eyeglasses $200 Dental services $300 What is Aaron's itemized deduction for medical expenses? a. $2,000 b. $4,500 c. $1,500 d. $0 During 2015, John, a self-employed individual, paid the following amounts: Real estate tax on Michigan residence $3,800 State income tax 1,800 Real estate taxes on land in Puerto Rico (held as an investment) 1,100 Gift tax paid on gift to daughter 1,200 State sales taxes 1,750 State occupational license fee 300 Property tax on value of his automobile (used 100% for business) 500 What is the maximum amount John can claim as taxes in itemizing deductions from AGI? a. $6,650 b. $7,850 c. $6,700 d. $8,625
Rebecca is a doctor with an AGI of $128,000 before consideration of income or loss from her dog breeding business. Her home is on 15 acres, 10 of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the following related income and expenses for the current year: Income from fees and sales $ 2,650 Expenses: Dog food $ 4,150 Veterinary bills 3,650 Supplies 1,260 Publications and dues 380 Required: How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby? (Leave no cells blank. Enter "0" wherever required.) How would your answer differ if the operation were held to be a business? (Leave no cells blank. Enter "0" wherever required. Enter all losses with a minus sign.)
! Required information [The following information applies to the questions displayed below.] Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $50,000 and has incurred the following medical expenses: Dentist charges Physician charges Optical charges Cost of eyeglasses Hospital charges Prescription drugs Over-the-counter drugs Medical insurance premiums (not through an exchange) $ 900 1,800 500 300 2,100 250 450 775 b. Suppose that Simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations. Medical expenses
[The following information applies to the questions displayed below.] Calvin reviewed his canceled checks and receipts this year (2023) for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Hobbs Medical Center State Museum A needy family United Way c. Calvin's AGI is $169,000. Item Charitable contribution deduction Carryover IBM stock Antique painting Food and clothes Cash Cost $ 9,800 7,400 880 56,000 FMV $70,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. Note: Leave no answer blank. Enter zero if applicable. 4,440 530 56,000
10-15. Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2019, the organization had the following account balances: [See attached image] The following took place during 2020: 1. Additional supplies were purchased on account in the amount of $16,050.2. Unconditional (and unrestricted) pledges of support were received totaling $95,000. In light of a declining economy, 4 percent is expected to be uncollectible. The remainder is expected to be collected in the current year.3. Supplies used for animal care amounted to $17,200.4. Payments made on accounts payable amounted to $17,100.5. Cash collected from pledges totaled $90,500.6. Salaries were paid in the amount $47,500. Included in this amount is the accrued wages payable at the end of 2019. (The portion of wages expense attributable to administrative expense is $15,000 and fund-raising expense is $2,000. The remainder is for animal care.)7.…
1.
Transportation (LO 3.3) Teresa is a self-employed civil engineer who uses her automobile for business. Teresa drove her automobile a total of 12,000 miles during 2022, of which 5,600 were business miles before July 1 and 4,000 were business miles after June 30. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,400. Teresa is eligible to use the actual or standard method. If required, round your answers to the nearest dollar. a. How much is Teresa's transportation deduction based on the standard mileage method? $ 5,756 X
Medical Expenses (LO 5.6) In 2019, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGl of $26,100. During the year they incurred the following expenses: Medical insurance premiums $1,300 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized 400 Medical care lodging (two people, one night) 65 Hospital bills 2,100 Doctor bills 850 Dentist bills 200 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 80 miles for medical transportation, and their insurance company reimbursed them $800 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers.
Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $132,500. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $290 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar. How much of Christina’s direct medical expenses was paid by her insurance policy? $ What did Christina have to pay for her nursing home care? $ How much income did Christina lose? $
Glenda is 71 years old and lives in a retirement home. She paid a total of $9,000 in attendant care fees, which she decided to claim as a medical expense. Form T2201 is certified by the CRA. How much can Glenda claim on Line 31600? gha $0 $130 $8,870 $9,000

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