[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 $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. Required: b-1. What is the maximum amount of business interest expense that Renee can deduct this year? b-2. How is the disallowed interest expense (if any) treated? Interest disallowed would be:

[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 $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover. Required: b-1. What is the maximum amount of business interest expense that Renee can deduct this year? b-2. How is the disallowed interest expense (if any) treated? Interest disallowed would be:

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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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 $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, 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 million Adjusted Taxable Income
XYZ Corporation sells clothing and accessories for the modern man. The corporation had revenues of $355,000 in the year 2021. During the normal course of its operations it incurred the following expenses. games Initial inventory utilities wages paid Rent Telecommunications service Insurance premium Advertising Shopping Final inventory Amount $25,000 11,500 35,000 12,000 1,344 8,112 500 45,000 15,000 Instructions: Determine the company's normal, additional, and total tax.
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Marco Travels reports a gross profit of $35,000, interest expense of $4,000, a tax rate of 30% and earning after taxes of $8,610. What is the depreciation expenses?
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Gretchen’s sales, current assets and current liabilities (all in thousands of pesos) have been reported as follows over the last four years (Year 4 is the most recent year): Year 4 Year 3 Year 2 Year 1 Sales P5,400 P4,950 P4,725 P4,500 Current assets 1,448 1,332 1,368 1,280 Current liabilities 318 324 330 300 Express all of the assets, liabilities and sales data in trend percentages (show percentages in each item). Use year 1 as the base year and carry computations to one decimal place.
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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?
Rourke Enterprises is owned by Dallas. For the year, Rourke had net income per books of $450,000. This included the following items: Federal income tax expense $125,000 Bad Debt Expense1 $80,000 Rent $50,000 Meals $45,000 Depreciation expense2 $105,000 Dividends3 $50,000 1 This was calculated using the allowance method. Using specific write-off, this would have been $50,000. 2 Sum-of-the-years-digits method was used for book purposes. Had MACRS been used, depreciation expense would have been $125,000. Had straight-line been used, depreciation would have been $95,000. 3 These dividends were from Mavis, Inc. Jiminy owns 75% of Jepeto. During the year, Rourke pays Dallas distribution of $500,000. Dallas has a basis of $600,000 in her stock. What are the tax consequences of the distribution to Dallas? What basis will…
A business was worth $ 130,000 on July 1 1996. It was worth \$26 on July 1.2007. The owner pays a income tax of 1.8% of the value of the businessAssuming a constant annual rate of increase in value, how much did the owner pay when she paid the income tax on July 12001?
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Flip's Pizzeria Inc. has the following financial items for the current year: Advertising Expenses $95,00O Cost of Goods Sold $620,000 Other Operating Expenses $390,000 Sales $2,030,000 Wages and Salaries $420,000 Capital Gain $45,000 Calculate Flip's taxable income for the current year. A B D E 1 2 Taxable Income (Net Operating Loss)= 3 4 7 8 9 10 6.