QUESTION 13Nancy is employed by a large corporation as a sales representative. She is paid a salary of $70,000 in 2023.She is required to have a home office and she estimates that her work related use at 375 square feet of her1,500 square foot house. Total expenses for 2023 were as follows:Mortgage payments (40% principal, 60% interest)Home owner's insuranceUtilitiesRoof repairMunicipal property tax$24,0009001,5008005,000As Nancy's compensation does not include any commissions, she is unable to claim some of these expensesas an employment expense. If instead, her compensation of $70,000 was in the form of commissions, shewould be able to claim extra employment expenses of:$1,675.O $1,475.O $5,075.O $3,600.

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Answered: QUESTION 13 Nancy is employed by a…

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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Interview Notes • Carmen, age 61, is single. She owns her home and provided all the costs of keeping up her home for the entire year. Her only income for 2023 was $48,000 in W-2 wages. . . Abigail, age 24, and her daughter Andrea, age 4, moved in with Abigail's mother, Carmen, after she separated from her spouse in April of 2021. Abigail's only income for 2023 was $25,000 in wages. Abigail provided over half of her own support. Andrea did not provide more than half of her own support. Abigail will not file a joint return with her spouse. • All individuals in the household are U.S. citizens with valid Social Security numbers. No one has a disability. They lived in the United States all year. Advanced Scenario 4: Test Questions 9. For the purpose of determining dependency, Andrea could be the qualifying child of a. Only Carmen b. Only Abigail c. Either Carmen or Abigail d. Neither Carmen nor Abigail 10. Abigail is eligible to claim Andrea for the earned income credit. a. True b. False
Question 18 Sean was negotiating his salary and benefit package with South Beach Hospital. First, South Beach offered Sean a salary of $75,000. Sean and his wife, Rachelle, had a baby last year and were paying $2,000 per month for day care costs. Assume their daycare costs have no tax benefit, Knowing the hospital had an onsite daycare, Sean asked South Beach for a salary of $60,000 and fully paid daycare at their on-site daycare. If Sean and Rachelle are in the 25% tax bracket, what is their after-tax savings per year if South Beach agrees to Sean's request? C A) $6,750 C B) $24,000 C C) $12,75so C D) $18,750
Required information [The following information applies to the questions displayed below.] Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 2,000 6,500 2,000 1,400 2,500 14,500 During the year, Alexa rented out the condo for 100 days. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 100 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $30,000 of gross rental receipts, her itemized deductions exceed the standard deduction before considering expenses associated with the condo, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following…
Jennifer recently earned a degree in accounting and her first employment opportunity is an accountant at a major corporation. The 401(k) portion of her employment package has a personal investment cap at 20% of her salary and the employer contribution portion is 50% of her contribution. Her annual salary is $56,500 and she chose to invest 14% annually. FUTURE VALUE of $1 Periods 8 9 10 11 3% 1.267 1.305 1.344 1.384 4% 1.369 1.423 1.480 1.539 FUTURE VALUE of ANNUITY of $1 Periods 8 9 10 11 3% 8.892 10.159 11.464 12.808 4% 9.214 10.583 12.006 13.486 Required: Calculate the value of her 401(k) after 10 years at 4%, and then calculate the value of her 401(k) had she invested the maximum amount that her employer would match.
Problem 14-59 (LO 14-5) (Algo) Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance. Advertising expense Mortgage interest Property taxes $ 1,330 700 5,700 1,330 750 Repairs & maintenance. Utilities Depreciation 1,030 12,050 During the year, Tamar rented out the condo for 83 days, receiving $15,500 of gross income. She personally used the condo for 53 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes…
Larry purchased an annuity from an insurance company that promises to pay him $6,500 per month for the rest of his life. Larry paid $626,340 for the annuity. Larry is in good health and is 72 years old. Larry received the first annuity payment of $6,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. Problem 5-59 Part-c (Algo) c. What are the tax consequences if Larry dies just after he receives the 100th payment?
Required information Problem 8-64 (LO 8-3) (Static) [The following information applies to the questions displayed below.] Brooke, a single taxpayer, works for Company A for all of 2023, earning a salary of $50,000. Note: Round your intermediate and final answers to the nearest whole dollar amount. Problem 8-64 Part b (Static) b. Assume Brooke works for Company A for half of 2023, earning $75,000 in salary, and she works for Company B for the second half of 2023, earning $125,000 in salary. What is Brooke's FICA tax obligation for the year? FICA tax obligation
i need help please its due in 10 mins for federal tax accounting George works for a construction company that builds large commercial buildings. These projects often last 10 -18 months. George's work office is in Dallas, Texas. However, he often supervises building projects out of state. In 2023, George was assigned to work on a project in Tucson, Arizona. The project was expected to last for 16 months. The company will pay for George's travel to Arizona, his lodging while there, and his meals. Can the company deduct the expenses related to George's travel to Arizona? Be sure to fully explain your answer and the applicable rules.
Required information [The following information applies to the questions displayed below.] Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10 a. Julie paid $2,500 to the day care center and her AGI is $51,000 (all salary). Child and dependent care credit S 1.040 b. Julle paid $6,250 to the day care center and her AGI is $51,000 (all salary). Child and dependent care credit S 2,600 X c. Julle paid $6,500 to the day care center and her AGI IS $125,300 (all salary). Child and dependent care credit d. Julie paid $4,500 to the day care center and her AGI is $400,300 (all salary). Child and dependent care credit e. Julle paid $6,500 to the day care center and her AGI is $14,000 ($4,500 salary and $9,500 unearned Income). Child and dependent care credit
ACCOUNTING 308 TAX RETURN PROJECT #1 Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda owns her own business. They file a joint return. Personal items: Wages / Salaries $75,000 (Includes both Lance and Wanda) Interest Income 1,100 Child support payments to John Allen 7,200 Lottery winnings 630 Federal income tax withholding 5,800 State income tax withheld 2,500 Wanda was previously married to John Allen, they divorced several years ago (prior to 2018). Under the divorce decree, Wanda was obligated to pay alimony to John. She paid him $7,200 throughout the year. Wanda is the owner of her own business. Throughout the year she earned $20,000 of taxable income from this business (taxed as an S-Corp). Additionally, Lance and Wanda had: (1)Sale of LMN publically traded stock on 8/15/2020 for $8,000 (originally purchased for $7,000 on 1/15/2016) (2)Sale of QRS publically…
QUESTION E This is the first year a taxpayer has used a vehicle for business. They drive 6,000 business miles. They also drove 4,000 personal miles. They had the lowing expenses. Gas $1,400 Maintenance $200 Insurance $600 Parking Fees $100 The taxpayer olects the actual expense method for calculating transportation deductions. What is their transportation tax deduction? O $920 O $1,320 O $1,420 O $1,380
Question 2 of 40. Arlene lives in a 700-square-foot studio apartment. Her rent is $1,300 monthly. She runs her own catering business and cooks client meals in her kitchen. Arlene's kitchen is 300 square feet. She also cooks her personal meals in the kitchen. What percentage of her rent may Arlene deduct as a business-use-of-home expense? O 0% 43% 57% 100% Mark for follow up

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