Tax Drill - Standard Mileage Method In 2020, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and $235 in tolls associated with the business mileage. Assuming Britt uses the standard mileage method, her deduction is $

Tax Drill - Standard Mileage Method In 2020, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and $235 in tolls associated with the business mileage. Assuming Britt uses the standard mileage method, her deduction is $

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
Problem 4-32 (LO. 2) Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of 2021, her accountant computes her accrual basis income that is used on her tax return. For 2021, Selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2020 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2021, she had $250,000 in accounts receivable from customers, all from 2021 sales. a. Compute Selma's accrual basis gross revenues for 2021. $4 b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2021 was $1,300,000. At the end of 2020, she had merchandise on hand with a cost of $150,000. At the end of 2021, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2021. The cost of goods sold for 2021 under the accrual method is $ Therefore, the gross profit from merchandise sales for 2021 under the…
1. Determine whether each statement is true or false. If the statement is false, make the necessary change(s) to produce a true statement A. You spent 1% of your $50,000-per-year salary on gifts, so you spent $5000 on gifts for the year. B. Federal income tax is a percentage of your gross income. C. Collision coverage pays for damage to another car if you cause an accident. D. Over the life of an installment loan, the interest portion increases and the portion applied to pay off the principal decreases with each successive payment. E. After depositing $1500 in an account at a rate of 4%, my balance at the end of the first year was $(1500)(0.04). 2. Under what circumstances should taxpayers itemize deductions? Explain. 3. Write the difference between debit cards and credit cards. 4. Describe the difference between simple and compound interest. 5. Define the terms: mortgage and down payment? 6. In what circumstance we use formula A = Pert to calculate the future value from compound…
Jerry and Ann paid the following amounts during the current year: Interest on automobile loan $1,500 Interest on bank loan (proceeds were used to purchase municipal bonds) $5,000 Qualified home mortgage interest $3,150 What is the maximum amount they can use as interest expense in calculating itemized deductions for the current year? a.$6,500 b.$3,150 c.$8,150 d.$4,650 e.None of these choices are correct.
On April 23, 2019, Bailey purchased an automobile for $25,000. The car is used 80% for business and 20% for personal use. What is the cost recovery deduction for 2019 and 2020 assuming the 100% bonus was taken? (Round answers to the nearest dollar)
QUESTION 9 Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss in January costing 1,127, another in May costing 2,209 and the last in December costing 1,043. If Faisal has a straight deductible of 324. How much will the insurer pay?
Ving purchased a previously-owned vehicle which met all the qualifications for the Clean Vehicle Credit. He spent $23,000 on the vehicle. What is his allowable credit? $0 $4,000 $6,900 $7,500
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…
Rita is keen to grow her business and provided some information on two transactlons that she undertook during the year. The first was the purchase of an individual asset for the business called a Techpager. wwym ww The initial cost of the machine itself was $32,000 with several extra required fees and charges. Rita also decided to include a number of optional extras in the purchase. Installation of Techpager $1500 Transportation and Shipping Costs $600 Extended Warranty/Service Program $300 per year. This is an optional service offered by the company that covers all maintenance and repairs costs and is paid annually in advance Sorting and Stapling Unit $1200 (required to allow Rita to produce the booklets for her business) Custom Painting $400 (Rita does not need to have this done but has decided she wants the machine to match her office décor) Insurance $500 per year payable in advance Prepare a general Journal entry to record the individual of the purchase business called Techpager.
From 1 March 2021 to 28 February 2022, employee A used her own vehicle for business purposes. She received a travelling allowance of R20 000 per month for this purpose. She travelled a total of 65 000 kilometers during the year of which 45 000 kilometers was for private travel. She kept an accurate logbook during the period she received the travel allowance. She purchased a motor vehicle for R660 000 (including VAT) on 28 February 2020. Finance charges for the current year was R105 000 and insurance was R3 500 a month, fuel was R7 000 a month and maintenance was R12 000 for the period. Do not use R, brackets, spaces, signs or decimals (unless specifically instructed) The deemed cost per kilometer is R?? (calculate to 3 decimals) Blank 1 Travel allowance for the year: Blank 2 Wear and tear: Blank 3 Finance charges: Blank 4 Insurance: Blank 5 Fuel: Blank 6 Maintenance: Blank 7 Actual cost per kilometer in Rand (calculate to 3 decimals): Blank 8 Possible deduction allowed for business…
Taxation Naga Tiddug applied and was hired as a cashier in Bagsakan Corporation. After saving enough money, he enrolled in the University of Saint Louis as an accountancy student. For 2021, he earned and incurred the following Salaries, net of: 162,000 SSS premium contribution -3600 Philhealth premium contribution -2400 Pag-ibig premium contribution- 3k Health and hospitalization premium contribution -2k Union dues- 3k Creditable withholding taxes-6k SSS loan- 10k Productivity bonus-12k Achievement award-cash -12k 13th month pay- 16k Christmas bonus- 16k Expense incurred: Tuition fee, board and lodging and other living expenses- 40k Medical expenses 10k Required A. How much is the non-taxable income of Naga? B. How much should be Naga's deductible expenses? C. How much is the taxable income of Naga? D. How much is the tax still payable (or refundable) of Naga?