Please solve this question general accounting Mr. King is employed as a plumber by MBV Services. Thisyear, Mr. King paid a $225 fee to renew his state-issuedplumber's license and $1,275 for supplies he uses on thejob. In the following case, compute Mr. King's after-taxcost of these employment-related expenses.Mr. King received no reimbursement from his employer.His AGI is $41,000, he itemizes deductions, and hismarginal tax rate is 15 percent.

Given:License fee = $225Supplies = $1,275Total expenses = $225 + $1,275 =…

Answered: Mr. King is employed as a plumber by…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 42P

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Mr. King is employed as a plumber by MBV Services. This year, Mr. King paid a $225 fee to renew his state-issued plumber's license and $1,275 for supplies he uses on the job. In the following case, compute Mr. King's after-tax cost of these employment-related expenses. Mr. King received no reimbursement from his employer. His AGI is $41,000, he itemizes deductions, and his marginal tax rate is 15 percent.(general account)[02]
None
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Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are taxable income to Jeremy this year if Jeremy is (1) a cash-method taxpayer and (2) an accrual-method taxpayer. (Leave no answers blank. Enter zero if applicable.) b. $860 from the Ladies' Club for leasing the trailer from December of this year through March of next year ($215 per month). Income under cash method Income under accrual method
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In January of year 0, Justin paid $9,400 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year 0 in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. a. The policy covers the business property from April 1 of year 0 through March 31 of year 1. b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. c. Justin pays $10,600 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2. Note: Do not round intermediate calculations. d. Instead of paying an insurance premium, Justin pays $9,400 to rent his business property from April 1 of year 0 through March 31 of year 1.

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