Problem 9-25 (Algorithmic) (LO. 1, 3, 5) Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $1,800 Lodging (8 nights) 2,340 Meals at local restaurants (8 days) 2,160 Airport transportation 130 Assume lodging/meals are the same amount for the business and personal portion of the trip ($293 per day for lodging and $270 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare 1,800 Lodging 1,465 Meals 1,350 Transportation 130 Total 4,743 What amount may she deduct on her tax return? 4,743 b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $ 4,743 and the expenses would be classified as an itemized deduction

Problem 9-25 (Algorithmic) (LO. 1, 3, 5) Kim works for a clothing manufacturer as a dress designer. During 2021, she travels to New York City to attend five days of fashion shows and then spends three days sightseeing. Her expenses are as follows: Airfare $1,800 Lodging (8 nights) 2,340 Meals at local restaurants (8 days) 2,160 Airport transportation 130 Assume lodging/meals are the same amount for the business and personal portion of the trip ($293 per day for lodging and $270 per day for meals). If an amount is zero, enter "0". If required, round all interim calculations to nearest dollar. a. Determine Kim's business expenses, presuming no reimbursement. Airfare 1,800 Lodging 1,465 Meals 1,350 Transportation 130 Total 4,743 What amount may she deduct on her tax return? 4,743 b. Would the tax treatment of Kim's deduction differ if she was an independent contractor? The deductible expenses would be $ 4,743 and the expenses would be classified as an itemized deduction

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Explain the items not allowed to be deducted
nagative externality can be internalized by a. taxation b. reqard c. subsidy d. none of the above
You make widgets, which is a subassembly for you main product of whatsup. An outside vendor has provided you with a quote to supply the widget part for $ 72.00 per unit Your cost records show the following: Your projected production for the widget is 12,500 units Item of Cost Per Unit Cost Direct Material $18.75 Direct Labor $38.00 Variable manufacturing overhead $9.25 Lease on manufacturing facility $36,000.00 per year Depreciation of equipment $2.50 Allocated Corporate Expenses $1.25 If this offer is accepted, you can sublease the manufacturing facility for $15,000 per year All direct and variable costs can be avoided. The equipment has no salvage value How much would net operating income be changed if the outside supplier offer was accepted? Show all calculations for full credit
Which one of the following is a revenue expenditure?
Define each of the following terms:a. Lessee; lessor
Why is it important to know about the levied to choose between RCIT and MCIT and whichever is higher?
What is the portion to interest and portion to principal? That should have been answered.
Actuarial (Remeasurement) gains and losses are reported as OCI as they occur using a. U.S. GAAP. b. IFRS. c. Both U.S. GAAP and IFRS. d. Neither U.S. GAAP nor IFRS.
What is the major difference between the unadjusted trial balance and the adjusted trial balance?
**Please provide in details How is the Accumulated Benefit Obligation (ABO) different from the Projected Benefit Obligation (PBO)? What events may cause the balance of the PBO to change?
Under what circumstances should a loss contingency be accrued?