Jimmy took a business trip from Dallas to Brazll. He was there for a total of seven days, of which two were weekend days. Over the weekend, he spent his time sightseeing and relaxing. His expenseswere as follows:AirfareLodging (7 days x $300)Meals (7 days)Taxi fares ($600 to and from business meetings)How much is Jimmy allowed to deduct?Multiple ChoiceOO$3,404$3,496$4,598$4,895$1,4002,100595800 Problem 6-50 (LO 6-3, 6-4)In 2017, Jessica bought a new heavy truck for $45,000 to use 80% for her sole proprietorship. Total miles driven include 12,000 in2017, 14,500 in 2018, and 13,000 in 2019. (Use Table 6A-1)Required:a. If Jessica uses the standard mileage method, how much may she deduct on her 2019 tax return (miles were incurred ratablythroughout the year)?b. What is the deduction for 2019 assuming the actual method was used from the beginning? Calculate depreciation only; the truck isnot limited by the luxury auto rules. Also, assume §179 was not elected in the year of purchase.a.b.Deduction$$10,4006,912

For Jimmy's business trip expenses, let's calculate the deductible amount:Airfare: $1,400…

Answered: Jimmy took a business trip from Dallas…

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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Question 7. Mario, who is single and elects to itemize, rents his mountain house for 210 days and uses it for personal use for 25 days during the year, not a leap year. Income and expenses associated with the property are: Rental income Mortgage interest payments Property tax payments Depreciation Utility payments Maintenance payments $ 24,000 12,000 8,000 7,000 5,000 4,000 If Mario is allowed a choice, Mario would choose to use the court approach to allocating mortgage interest and property taxes. Determine the amount of expense that Mario would deduct from AGI on his current year tax return associated with the mountain house. a) $32,493 b) $8,493 c) $851 d) $24,000 e) $2,128
H1. during the tax year 2023 ji min purchased a electric heat pump at a cost of 7,000 for her main home. she purchased her home in 2018 located in the USA. her tax liability is 2,575 , what is the amount of ji min energy efficient home improvement credit
Problem 5: Tax Credits Ted and Julia Higgins are married for all of 2022 with an AGI of $175,000 which includes $25,000 of earned income for Ted and $100,000 of earned income for Sophia. Their taxable income is 145,000 and tax liability is $20,000. They have two children, Bryan and Sophia, who meet all of the requirements of a qualifying child for 2022. Bryan is 12 and attends high school full time. The Higgins spend $10,000 during 2022 on child care for Bryan. Sophia is a full-time student in her junior year at UCR. The Higgins spend $6,000 on tuition, books and other course materials for Sophia during 2022. Required: What is the total amount of tax credits that the Higgins’ can report on their tax return?
ha
Jenny owned a business and had a passenger vehicle that was used 100% for her business. What is the largest amount of depreciation that Jenny can claim for the vehicle on her 2022 California Income Tax Return? 1) $0 2) $3 3) 460 4) $19,200
5
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Barney is self-employed and drove his vehicle 15,000 miles in 2019. 10,000 miles were for business. He has the following expenses Gas & oil $1,800. Car insurance $600. Depreciation $2,700. Taxes $300. How much can he deduct using actual expenses? Group of answer choices A.$5,750 B.$3,618 C.$4,806 D.$5,400
Problem 3-39 (LO 3-2, LO 3-3) (Algo) Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $50,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $50,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 37 percent this year and next year, and that she can earn an after-tax rate of return of 10 percent on her investments Required: a. What is the after-tax cost if Isabel pays the $50,000 bill in December? b. What is the after-tax cost if Isabel pays the $50,000 bill in January? Use Exhibit 31. Note: Round your answer to the nearest whole dollar amount. c. Based on requirements a and b, should Isabel pay the $50,000 bill in December or January? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the after-tax cost if Isabel pays the $50,000 bill in December?…
Question 25. In tax year 2021, Max (a single taxpayer who is self-employed) used his car for 16,000 miles of business use and 4,000 miles of personal use. Max incurred the following expenses during 2021 (except for the parking and tolls, all expenses represent the total expense incurred during the year and are allocable between business and personal use): (1) $400 for parking and tolls related solely to business trips (2) $800 for gasoline (3) $1,000 for insurance (4) $10,200 for depreciation (5) $500 for fines relating to speeding tickets and parking violations Compute Max's deduction for transportation expenses in 2021 under both the actual expense method and the automatic (standard) mileage method. A. $12,000 actual expense method; $8,960 standard mileage method B. $12,500 actual expense method; $9,360 standard mileage method C. $9,600 actual expense method; $8,960 standard mileage method D. S10.000 actual expense method; $9,360 standard mileage method
Please answer all parts Michelle operates several food trucks. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction in each of the following situations. (Leave no answers blank. Enter zero if applicable.) b. Michelle paid $810 to reserve a parking place for her food truck for the fall football season outside the local football Stadium. Michelle also paid $155 for tickets to a game for her children. Deductible amount__ c. Michelle provided a candidate with free advertising painted on her truck during the candidate’s campaign for city council. Michelle paid $740 to have the ad prepared and an additional $440 to have the ad removed from the truck after the candidate lost the election Deductible amount__ d. Michelle realized a $1,260 loss when she sold one of her food trucks to her father, a related party Deductible amount__
Problem 7-19 (Algorithmic) Education Tax Credits (LO 7.5) Janie graduates from high school in 2020 and enrolls in college in the fall. Her parents (who file a joint return) pay $8,475 for her tuition and fees. If required, round your computations to the nearest whole value. a. Assuming Janie's parents have AGI of $162,000, what is the American Opportunity tax credit they can claim for Janie? b. Assuming Janie's parents have AGI of $64,800, what is the American Opportunity tax credit they can claim for Janie? $

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