Required information[The following information applies to the questions displayed below.]Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $95.5million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods soldof $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million ofdepreciation, and $2 million deduction for a net operating loss carryover.a. What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense?Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 1 decimal place.Answer is complete but not entirely correct.$ 26.1 millionAdjusted Taxable Income

To calculate Renee's adjusted taxable income for purposes of calculating the limitation on business…

Answered: Renee operates a proprietorship selling…

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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Dan's business has accounting income after tax expense of $10,000. Tax expense recorded for accounting totaled $1,000. Dan has also expected Meals and entertainment of $500 and property taxes of $2,000. Calculate Dan's taxable income. 11,250 11,500 13,250 10,250
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Xinran, who is married and files a joint return, owns a grocery store. In 2022, his gross sales were $276,000 and his operating expenses were $320,000. Other items on his 2022 return were as follows: Nonbusiness capital gains (short-term) $20,000 Nonbusiness capital losses (long-term) 9,000 Itemized deductions 18,000 Ordinary nonbusiness income 8,000 Salary from part-time job (spouse) 10,000 In 2023, Xinran provides the following information: Net business income $60,000 Salary (spouse) 25,000 Interest income 2,000 Adjusted gross income $87,000 Less: Itemized deductions* Charitable contributions (cash) $35,000 Medical expenses of $6,925 [limited to the amount inexcess of 7.5% of AGI ($6,925 – $6,525)] 400 Total itemized deductions $35,400 * The 2022 married filing jointly standard deduction is $25,900; Xinran's itemized deductions will exceed the 2023 standard deduction (after adjustment for inflation). Enter…
I'm 2015, mary invested 200,000 in a business that is not a passive activity. During 2016, her share of the business loss is 140,000. In 2017, her share of the business los 100,000. How much can mary deduct in 2016 and 2017?
At the start of the year, Josh has assets worth $500,000. He has debts worth $350,000. Over the year, he earns $200,000 of which he pays $50,000 in tax. He spends $50,000 on goods and services. He pays interest on his debt at 10% of $350,000. He pays off $30,000 of his debts.His assets go up in value by $25,000. What is his net worth at the end of year.
1. Jim paid his brother to provide computer services for Jim's business. Jim paid him $14,000. Other firms provide the same services for $5,000. How much of this expenditure is deductible? 2. XYZ landscaping sold a truck during 2021 for $15,000 recognizing a gain of $2,000. What is the adjusted basis of the truck? 3. Bill earned $50,000 from self employment during 2021. How much must he pay in self employment tax? 4. Ed commutes to work every day during 2021. He spent $3,000 in transportation. How much can he deduct for 2021?
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Rocky repairs TV sets in the basement of his personal residence. Rocky uses 450 square feet (20%) of his residence exclusively for the repair business. Business profit is $4,000 before any office-in-home expenses are deducted. Expenses relating to the residence are as follows: Real property taxes $5,500 Interest on home mortgage 7,000 Operating expenses of residence 3,000 Depreciation (100% amount) 5,000 The maximum home office expense deduction he can take in 2020 using the regular (actual expense) method is _____. The amount of expenses Rocky would carryover to 2021 if he uses the regular method is _____. The amount of home office expense deduction he can take in 2021 using the simplified method is _____. The amount of expenses Rocky would carryover to 2021 if he uses the simplified method is ____. Rocky should use the regular method or the simplified method? _____
The Roths bought a house for $433,900. They paid the sellers a 20% down payment and obtained a simple interest amortized loan for the balance from their bank for the remainder, at 4 7/8% for thirty years. The bank in turn paid the sellers the loan amount, less a 6% sales commission paid to the sellers' and buyers' real estate agents. The bank charged them 2 points plus fees totaling $8,459.46; of these fees, $6,251.28 were included in the finance charge. (a) Find the loan amount. (b) Find the "legal loan amount" –the amount borrowed, according to the Truth in Lending Act. (Round your answer to the nearest cent.)(c) Find the Roth's monthly payment. (Round your answer to the nearest cent.)(d) Find the APR (round to the nearest hundredth of 1%).(e) Find the total interest paid. (Round your answer to the nearest cent.)(f) Find the total finance charge. (Round your answer to the nearest cent.)(g) Find the amount that the sellers are paid for their house.
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