This year (2022), Evan graduated from college and took a job as a deliveryman in the city. Evanwas paid a salary of $74,400 and he received $700 in hourly pay for part-time work over theweekends. Evan summarized his expenses as follows: Cost of moving his possessions to thecity (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,940 Cost ofpurchasing a delivery uniform 1,540 Cash contribution to State University deliverymanprogram 1,370 Calculate Evan's AGI and taxable income if he files single. Assume that interestpayments were initially required on Evan's student loans this year.

Taxable income:Taxable income is the money we earn that the government considers eligible for…

Answered: This year (2022), Evan graduated from…

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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Sue is a college student. Look at the screenshot below to answer the question.
LaMont works for a company in downtown Chicago. The firm encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $270 per month. a. If LaMont receives one pass (worth $270) each month, how much of this benefit must he include in his gross income each year? b. If the company provides each employee with $270 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
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Review the following scenario. Use the information provided to answer questions about the taxpayers’ 2020 return.Chris (45) and Allison (46) Castillo are married, and they will file a joint return. During the year, they earned $82,500 in wages. They also had investment income consisting of: $200 interest income from a savings account with their local bank, reported on Form 1099-INT. $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT. $250 interest income from a U.S. Treasury note, reported on Form 1099-INT. $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT. $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV. They had no other income. Question 1 What amount will Chris and Allison report for taxable interest on their Form 1040? The couple's partially completed Form 1040, page 1, is shown below. You may use the form to assist you in answering this…
Jordan took a business trip from New York to Denver. She spent two days in travel, conducted business for nine days, and visited friends for five days. She incurred the following expenses: Airfare $ 550 Lodging 3,000 Meals 900 Entertainment of clients 750 Required: How much of these expenses can Jordan deduct?
Mang Carding is a minimum wage earner. To augment his earnings, he put up a mini store under his name and managed by his wife. Records show the following relating to his compensation and store operations for the taxable year: Basic salary P85,000 Overtime and holiday pay 10,000 13th month pay 8,000 14th month pay 8,000 Allowances 25,000 De minimis – limit 20,000 De minimis – excess over limit 10,000 Store gross income 100,000 Compute the taxable income of Mang Carding.
Ernest works for a clothing manufacturer as a dress designer. During 2022, he travels to New York City to attend five days of fashion shows and then spends three days sightseeing. His expenses are as follows: Airfare $1,800 Lodging (8 nights) 2,000 Meals at local restaurants (8 days) 1,440 Airport Uber ride 100 Assume lodging/meals are the same amounts for the business and personal portion of the trip ($250 per day for lodging and $180 per day for meals). He has proper substantiation for each item. As an employee and assuming no reimbursement, what amount is deductible on his personal return in 2022? Show detail for each item. If he was an independent contractor, what amount would be deductible on his personal return in 2022? Show detail for each item. For item b: is this amount FOR or FROM AGI?
Florence is employed by Sparkling Drinks Limited and earns a salary of $40,000 per month. Her taxable benefits are: housing accommodation $30,000 per month; company car $65,000 (cost $750,000 six years ago, 60% private use). During the year of assessment 2013 on her building society savings account, Florence earned $1,500 interest gross from which $375 withholding tax was deducted. She also earned $3,000 interest gross on a bank fixed deposit (withholding tax $750). For the period January to December 2013 Florence paid $83,172 by PAYE. Note NIS is 2.5% of total emoluments Income tax threshold is $507,312 Calculate the balance of tax due from Florence to the Inland Revenue Department for the year of assessment 2013
Jim Jaffers, a cash-basis farmer, paid $2,100 for fertilizer and lime expenses, the effects of which will last about three years. He received $1,200 for fertilizer from the USDA. His total expense for fertilizer, feed, seed, and similar items for the current year and each of the past three years has been 40% of his total farming expense. Which of the following is correct with respect to actions Jim may take? (a) Deduct the fertilizer and lime expense in the year the expense was paid. (b) Capitalize the fertilizer and lime expense, and depreciate it over a five-year recovery period. (c) Deduct the expense only in the year the fertilizer and lime are applied to the soil. (d) Deduct $900 [$2,100 expense – $1,200 USDA payment for fertilizer] in the year paid.
Toshiomi works as a sales representative and travels extensively for his employer's business. This year Toshiomi was paid $75,000 in salary and made the following expenditures: State income taxes withheld $6,300 Employee business expenses (unreimbursed portion) 1,450 Charitable cash contributions 200 Investment counseling fees 780 Tax preparation fee 310 Toshiomi also made a number of trips to Las Vegas for gambling. This year Toshiomi won $12,000 in a poker tournament and this amount was almost enough to offset his other gambling losses ($13,420). Calculate Toshiomi's taxable income if he files single.
a mother earned $15000.00 from royalties on her cookbook. She set aside 20% of this for a down payment for a new home. The balance will be used for her son's future education. She invested a portion of the money in a bank certificate of a deposit (cd account) that earns 4% and the remainder in a savings bond that earns 7%. IF the total interest earned after one year is $720.00, how much money was invested at each rate?
A mother earned $18750.00 from royalties on her cookbook. She set aside 20% of this for a down payment on a new home. The balance will be used for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) that earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $900.00, how much money was invested at each rate? How much money was invested in the CD account? (Round to the nearest cent.) GILB

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