Need help with this accounting questions Peters won a new home theater system from his employer for exceeding sales targets. Thesystem cost the employer $3,200 through a wholesale distributor; it had a retail price of$4,500. In addition, Peters' employer gave him $900 to pay the taxes on the prize. Howmuch must Peters include in his gross income?a. $5,400b. $4,100c. $3,200d. $4,500

Step 1: Definition of Gross IncomeGross income includes all income received in the form of money,…

Answered: Peters won a new home theater system…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 10MCQ: Which of the following will result in the recognition of gross income? Gail's employer allows her to...

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Jordan took a business trip from New York to Denver. She spent two days in travel, conducted business for nine days, and visited friends for five days. She incurred the following expenses: Airfare $ 580 Lodging 3,800 Meals 950 Entertainment of clients 760 Required: How much of these expenses can Jordan deduct? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar value. Deduction
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Katie operates a ceramics studio from her garage. She incurs the following expenses: Clay and paint supplies $3,500 Painting technique seminars 400 Pottery wheel 75 Utilities for the ceramic studio 375 Advertising 50 Katie’s gross receipts from her business were $2,000.a. If the studio is deemed to be a hobby, then calculate the amount of expenses Katie may deduct, and describe how she may report the income and expenses on her tax return. b. If the studio is not a hobby, then calculate the amount of expenses Katie may deduct, and describe how she may report the income and expenses on her tax return.
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Jordan took a business trip from New York to Denver. She spent two days in travel, conducted business for nine days, and visited friends for five days. She incurred the following expenses: Airfare $ 440 Lodging 2,400 Meals 600 Entertainment of clients 480 Required: How much of these expenses can Jordan deduct? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar value.)

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