Michele owns and operates her own business as a sole proprietorship. During the current year, she gave the following gifts to business clients. None of theemployees of the receiving companies were to receive more than one gift.50 desk sets imprinted with her company's namevalued at $4 each to Company A20 bottles of wine valued at $20 each to Company B20 floral arrangements at a cost of $30 each toCompany C$ 20040060050 watches at a cost of $25 each to Company DEngraving the sole proprietorship's name on watchesto Company D1,250100What is the amount of business gifts Michele can deduct for the current year?O A. $2,350O B. $2,750O C. $2,450O D. $2,650

A tax deduction is the entire amount that a person can use to lower their tax obligation. It is a…

Answered: Michele owns and operates her own…

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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For the current year, Gina Hestopolis had adjusted gross income of $100,000. During the year, she contributed a total of $6,000 in cash to her church evenly throughout the year and an additional $3,000 in cash to qualified charities. She also contributed religious artwork with a fair market value of $60,000 and a basis of $20,000 to her church. The church intends to display the religious artwork in the church foyer. If Gina chooses to itemize her deductions, what is the amount of her deductible charitable contribution in the current year?Group of answer choices$9,000. $20,000. $35,400.$60,000.
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Bob Terwilliger received $18,351 for his services as financial consultant to the mayor's office of his hometown of Springfield. Bob says that his consulting work was his civic duty and that he should not receive any compensation. So, he has invested his paycheck into an account paying 4.22 percent annual interest and left the account in his will to the city of Springfield on the condition that the city could not collect any money from the account for 180 years. How much money will the city receive in 180 years from Bob's generosity?
Please help solve
Transaction: On April 2, Count-On-Us Pty Ltd paid $4,000 for rent of an office building for the months of May and June. The payment of rent was recorded as an asset. Instructions: Record the transaction in the general journal by selecting the correct accounts that are debited and credited.
Cummings and Stickel Construction Company, a partnership, is operating a general contracting business. Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Hewson, and Patricia Weber. Profits and losses are shared equally. The books are kept on the calendar-year basis. On August 10, after the business had been in operation for several years, Patricia Weber passed away. Mr. Weber wished to sell his wife’s interest for $30,000. After the books were closed, the partners’ capital accounts had credit balances as follows: Katie Cummings $90,000 Julie Stickel 60,000 Roy Hewson 50,000 Patricia Weber 40,000 Required: 1. Prepare the general journal entry required to enter the check issued to Mr. Weber in payment of his deceased wife’s interest in the partnership. According to the partnership agreement, the difference between the amount paid to Mr. Weber and the book value of Patricia Weber’s capital account is allocated to the remaining…
Marvin had the following transactions: Salary $50,000 Compensation of body injury due to car accident 15200 Bank loan (proceeds used to buy personal auto) 10,000 Alimony payment to ex-wife (divorce settled in 2018) 6,000 Child support payment 12,000 Gift from aunt Gain from sale of city of Bloomington bonds 5,000 20,000 Interest from City of Bloomington Bonds 500 Interest received on the U.S. Government bonds 1,500 Interest received on corporate (GE company) bonds 350 Lottery winnings 500 Life insurance proceed after her grandmother died 150,000 Calculate Marvin’s AGI:
Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be included in Darlene's gross income in the table provided. a. Donald's employer paid Darlene an amount equal to Donald's three months' salary ($15,000), which is what the employer does for all widows and widowers of deceased employees. b. Donald had $6,800 in accrued salary that was paid to Darlene. c. Donald's employer had provided Donald with group term life insurance of $255,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $13,200 had been included in Donald's gross income under § 79. d. Donald had purchased a life insurance policy (premiums totaled $162,000) that paid $427,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $31,000 each year for a 22-year period. She…
Kathleen, age 56, works for MH Incorporated in Dallas, Texas. Kathleen contributes to a Roth 401(k), and MH contributes to a traditional 401(k) on her behalf. Kathleen has contributed $30,000 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $50,000 and the balance in her traditional 401(k) is $40,000. Kathleen needs cash because she is taking a month of vacation to travel the world. Answer the following questions relating to distributions from Kathleen's retirement accounts assuming her marginal tax rate for ordinary income is 24 percent. a. If Kathleen receives a $10,000 distribution from her traditional 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? (answer is not 6200)
Amy earns an income of 50,000 this year as an employee of rooster enterprises. She pays the following amounts during the year: Contribution to Traditional IRA : 5000 PreTax Cuts and Jobs Act Alimony she paid to her ex husband: 10,000 Medical expenses: 6000 What is Amy's Adjusted Gross Income? (AGI) a. 29000 b. 34000 c. 35000 d. 39000
Your client, a carpenter, donated one of his handcrafted wooden desks to his church, a qualified public charity. The church sold the desk at an auction for $3,500, which is comparable to the standard price for the client's other woodwork. He calculated his costs as follows: Wood $1,000 Other materials $300 Rent for workshop $500 Time and services $1,700 This is his only charitable contribution. He itemizes deductions and has an adjusted gross income of $80,000. What is the maximum current year income tax deduction allowable for the client's charitable contribution? A)$3,500 B)$1,800 C)$500 D)$1,300
Ralph made the following business gifts during the year To Robert (a key client) at Christmas: $50 To Angel (Robert’s 8-year old daughter) on her birthday: $20 To Art (Ralph’s secretary) on his birthday ($3 was for gift wrapping): $30 To Paige (Ralph’s boss) at Christmas: $40 Presuming proper substantiation, Ralph’s deduction is: A. $0 B. $53 C. $73 D. $78

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