Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionelborrowed $36,500 from County Bank and paid interest of $2.190. Lionel used the loan proceeds to pay his law schooltuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loansunder the following circumstances: (Leave no answer blank. Enter zero if opplicable.)b. Llonel's AGI before deducting interest on higher-education loans is $79.000.Higher oducation expensesInterest deductionc. Lionel's AGI before deducting interest on higher-education loans is $90,000.Higher education expensesInterest deduction

Income earned through the year and then adjusted can be called as Adjusted Gross Income (AGI).

Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Liohe borrowed $36,500 from County Bank and pald interest of $2,190. Lionel used the loan proceeds to pay his law scho tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loa under the following circumstances: (Leave no answer blank. Enter zero if applicable.) Llonel's AGI before deducting interest on higher-education loans is $70.000. Higher education expenses Interest deduction c. Llonel's AGI before deducting Interest on higher-education loans is $90,000.

Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Liohe borrowed $36,500 from County Bank and pald interest of $2,190. Lionel used the loan proceeds to pay his law scho tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loa under the following circumstances: (Leave no answer blank. Enter zero if applicable.) Llonel's AGI before deducting interest on higher-education loans is $70.000. Higher education expenses Interest deduction c. Llonel's AGI before deducting Interest on higher-education loans is $90,000.

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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Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $31,000 from County Bank and paid interest of $1,860. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for interest on higher-education loans under the following circumstances: Note: Leave no answer blank. Enter zero if applicable. a. Lionel's AGI before deducting interest on higher-education loans is $50,000. b. Lionel's AGI before deducting interest on higher-education loans is $79,000. c. Lionel's AGI before deducting interest on higher-education loans is $90,000.
In 2022, Elaine paid $2,800 of tuition and $600 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. Required: a. Elaine's AGI is $80,000. b. Elaine's AGI is $168,000. c. Elaine's AGI is $184,000.
Dale and Eleanor are married taxpayers. In 2021, they will file a joint return and will take the $25,100 standard deduction. Dale is the owner of Just Delicious, a boutique candy store in Last Resort, Florida. Just Delicious, which Dale operates as sole proprietorship, had qualified business income of $500,000 in 2021. He paid $50,000 in w-2 wages (note: these wages are included in the $50,000 of qualified business income). In addition, the unadjusted basis in assets was $1,000,000 (this amount includes candy making equipment as well as retail fixtures). Eleanor is director of human resources for a large corporation. Dale and Eleanor’s gross income excluding the $500,000 from Just Delicious was $300,000 Determine Dale and Eleanor’s taxable income in 2021. Assume that instead of owning and operating Just Delicious, Dale was a CPA earning $500,000. He paid w-2 wages of $50,000 and the unadjusted basis of his computers and office furnishings was $600,000. They continue to take…
Adan and Eva are both under age 65 and bona fide residents of Puerto Rico who file a joint return. Adan had self-employed gross income of $30,000 from his business in Puerto Rico. Eva works for the federal government and her salary was $45,000. Before calculating the allowable portion, they had the following eligible itemized deductions: ●Home mortgage interest: $8,500 ●Real estate taxes: $1,400 ●Charitable contributions: $750 2.2 Calculate the allowable standard deduction for Adan and Eva. Based on these calculations, the allowable standard deduction is higher than the allowable itemized deductions. Yes or No
Jordan owns and operates Jordan's Exotic Journeys (JEJ), a sole proprietorship. JEJ sponsors a profit- sharing plan. Jordan had net income of $150,000 and paid self-employment taxes of $20,000 (assumed) during the year. Jordan has decided to make a 15% contribution for her employees for the year. Assuming Jordan is over the age of 50, what amount will she contribute for herself to the plan for 2019? a. $16,957. b. $18,261. c. $28,000. d. $56,000.
Review the following scenario. Use the information provided to answer questions about the taxpayers’ 2020 return.Jake (27) and Nicole (26) Graham are married and filing a joint return. Jake was employed full-time during the year. Nicole worked part-time, and she was also a full-time student at State University. During the year, she paid $3,800 in tuition and fees, substantiated with Form 1098-T. She did not receive any scholarships during the year. Nicole meets all the requirements to qualify for the American Opportunity Tax Credit.The couple’s adjusted gross income is $47,000. Their tax on line 16 and on line 18 of their Form 1040 is $2,272. They had no additional taxes.To assist you in answering questions about the couple’s tax benefits for education, you may refer to the partially completed Credit Limit Worksheet, which is shown below.2020 Form 8863 Credit Limit Worksheet – Line 191. Enter the amount from Form 8863, line 18. _________2. Enter the amount from Form 8863, line 9.…
6. Leslie who is single, finished graduate school this year and began repaying her student loan. The proceeds of the loan were used to pay her qualified higher education expenses. She has not received any type of educational assistance or scholarships. The amount of interest paid during the year amounted to $3,800. What is the amount and classification of her student loan interest education deduction if her modified AGI is $20,000.
Required information [The following information applies to the questions displayed below.] In 2021, Elaine paid $2,800 of tuition and $600 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? (Leave no answer blank. Enter zero if applicable.) b. Elaine's AGI is $168,000. American opportunity tax credit
Use the information below for this page of questions. Julie is single with no dependent. She receives a salary of $15,000 per month from Big Corporation. Julie earned interest of $35,000 on City of Charlotte Bonds. Julie paid alimony of $40,000 to her former husband (divorce was finalized in 2015). Julie paid mortgage interest of $12,000 and made deductible charitable contributions of $5,000. Salary $180,000 Interest earned on City of Charlotte Bonds $35,000 Charitable contribution made by Julie (in cash) $5,000 Mortgage interest expense for his home $12,000 Alimony paid to Julie's former husband $40,000 What is Julie's adjusted gross income for 2020?
Wally (Married Filing Jointly) has a Traditional IRA with a balance of $150,000. Some of the contributions to the IRA over the years have been non-deductible, resulting in Wally accruing a certain amount of basis in his account. Wally has correctly filed his form 8606 each year with the IRS. Wally is 40 years old and wishes to make an early withdrawal of $10,000 from the account. The withdrawal is not qualified for an exemption from early withdrawal penalties. According to the IRS, Wally can claim a basis of 20% of the amount of the withdrawal. Wally is in the 22% marginal tax bracket. After taxes and penalties, how much of the $10,000 early withdrawal will Wally actually receive? Group of answer choices $7,440 $5,440 $8,000 $10,000