Quinn is an employee of Caribbean Imports. His company car is a 2021 Toyota Prius LXE with a fair-market value of $30,000 and a lease valueof $8,250, according to Publication 15-b. During the year, Quinn drove 36,953 miles, of which 6,822 were for personal use. The car wasavailable for use on 250 of the days during the year. All gasoline was provided by the employer and is charged back to Quinn at $0.055 permile. What is the amount of the company-car fringe benefit that will appear on Quinn's W-2, using the lease-value rule? (Do not roundintermediate calculations, only round final answer to two decimal points.)Multiple Choice$375.21$1,043.19$1,418.40

Lets imderstand the basics.Lease Value Rule is a tax regulation used by the Internal Revenue Service…

Answered: Quinn is an employee of Caribbean…

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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In 2018, Ensley drove her automobile 28,500 miles. She incurred the following expenses during the year related to the automobile:Gas and oil, lubrication: $1,800 Insurance: $980Repairs: $360Licenses and registration fees: $50Business parking and tolls: $170She uses the automobile 80% for business. Based on the data, Ensley's automobile deduction under the actual cost method is
Jimmy took a business trip from Dallas to Brazll. He was there for a total of seven days, of which two were weekend days. Over the weekend, he spent his time sightseeing and relaxing. His expenses were as follows: Airfare Lodging (7 days x $300) Meals (7 days) Taxi fares ($600 to and from business meetings) How much is Jimmy allowed to deduct? Multiple Choice O O $3,404 $3,496 $4,598 $4,895 $1,400 2,100 595 800
Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2019: Gross receipts $ 203,000 Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2019 Van (over 6,000 lbs) placed in service 1/01/19, cost 27,000 Postage (500 ) Wages (26,000 ) Payroll taxes (1,950 ) Supplies (12,500 ) Phone (1,250 ) Internet service (600 ) Rent (2,400 ) Insurance (2,800 ) Van expenses (4,500 ) Business assets Date Purchased Cost Computer 1 5/18/19 $ 2,200 Computer 2 6/01/19 2,700 Printer 3/01/18 900 Copier 3/02/18 2,100 Furniture 3/01/18 6,000 Required: Determine Cassi’s self-employment income and QBI deduction. Prepare Schedule C and Schedule SE. § 179 expense is elected on all eligible assets (§ 179 was not taken on assets…
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2023. During that time, he earned $90,000 of self-employment income. On April 1, 2023, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $198,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Self-employment/FICA tax
Blackburn Corporation is a calendar year taxpayer. Every year on September 1, Blackburn enters into a contract with Smith Company for Smith to provide cleanup and winterization services for its grounds and buildings. The amount paid on September 1 when the contract is signed is $7,500 and the contract runs from December of the same year through March of the following year. When may Blackburn deduct the amount paid on September 1, 2020?
To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Daun purchased the stereo systems for $260,000 and sold them for $370,000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 2 percent of sales. During the year, she paid $4,020 cash to replace a defective tuner. Requireda. Prepare an income statement and statement of cash flows for Daun’s first year of operation. b. Based on the information given, what is Daun’s total warranties liability at the end of the accounting period?
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2022. During that time, he earned $44,000 of self-employment income. On April 1, 2022, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $178,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2022. During that time, he earned $54,000 of self-employment income. On April 1, 2022, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $200,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? Note: Round your intermediate calculations to the nearest whole dollar amount. Self Employment/FICA taxes= ???
Brittany, who is an employee, drove her automobile a total of 20,000 business miles in 2022. She drove 10,000 miles in the first half of the year and 10,000 miles in the second half of the year. This represents about 75% of the auto's use. She has receipts as follows: parking(business only) $500 tolls (business only) 200 Repairs $1000 Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations, Brittany can deduct A) $0. B) $12,000. C) $11,825. D) $13,000.
Erika has a mining operation. In 2021, she earned 175 coins with a fair market value (FMV) of $250 per coin at the time she received them. She received 11.25 coins at the same time for transaction verifications. She had no other income from the mining. She sold 120 of the coins for $265 per coin a month later. Her deductible expenses for the mining operation were $12,000. Finally, she earned ten coins for interest with an FMV of $2,300 total. How much net income does Erika show on her Schedule C?
Ken is a self-employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken full-time for the last four years. The office assistant earns $31,800 per year and each drafter earns $41,800. Ken’s net earnings from self-employment (after deducting all expenses and one-half of self-employment taxes) are $351,800. Ken is considering whether to establish a SEP plan and has a few questions. Assume that all the employees are at least 21 years old. If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? (Hint: Calculate the employee amounts first.) Ignore any changes in Ken’s self-employment tax.
Ryan is self employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,850 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 14,600 miles. Ryan estimates that he drove approximately 1,560 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,400 miles. What business expense amount can Ryan deduct (if any) for these trips?

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