Thisyear (2023), Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $79,700 and hereceived $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows:Cost of moving his possessions to the city (125 miles away)Interest paid on accumulated student loans.Cost of purchasing a delivery uniformContribution to State University deliveryman program$ 1,2002,9601,5601,380Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's studentloans this year.Evan's AGITaxable income

AGI is a key figure on your tax return that represents your total income from all sources, minus…

Answered: This year (2023), 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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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.
Sandra Ohm travels extensively for her employer. Her employer provides an allowance of $200 per day to cover hotel costs. In addition, she is paid $0.41 per kilometre when she is required to use her automobile for travel. For her work, during the current year, she traveled a total of 82 days and drove 9,400 kilometres. Her employer paid her $16,400 for lodging [(82)($200)], as well as $3,854 dollars for mileage [(9,400)($0.41)]. Her actual lodging costs were $18,300, while her total automobile costs were $7,200, including monthly lease payments. Her total mileage on the car during the year was 23,500 kilometres. What amounts should Ms. Ohm include and deduct in determining net employment income for the current year?
Calvin reviewed his canceled checks and receipts this year (2021) for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Item Cost FMV Hobbs Medical Center IBM stock $ 5,600 $ 28,000 State Museum Antique painting 5,300 3,180 A needy family Food and clothes 460 280 United Way Cash 14,000 14,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. (Leave no answer blank. Enter zero if applicable.) c. Calvin’s AGI is $64,000. d. Calvin’s AGI is $130,000 and Hobbs is a private nonoperating foundation. e. Calvin’s AGI is $130,000, but the painting is worth $28,000.
Required information [The following information applies to the questions displayed below.] Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start- up company. What amount of child and dependent care credit can Julie claim in 2021 in each of the following alternative scenarios? Use Exhibit 8-10 a. Julie paid $2,500 to the day care center and her AGI is $51,000 (all salary). Child and dependent care credit S 1.040 b. Julle paid $6,250 to the day care center and her AGI is $51,000 (all salary). Child and dependent care credit S 2,600 X c. Julle paid $6,500 to the day care center and her AGI IS $125,300 (all salary). Child and dependent care credit d. Julie paid $4,500 to the day care center and her AGI is $400,300 (all salary). Child and dependent care credit e. Julle paid $6,500 to the day care center and her AGI is $14,000 ($4,500 salary and $9,500 unearned Income). Child and dependent care credit
In 2019, Jose paid the following amounts for his son to attend Big State University: Tuition $9,000 Room and board 6,300 Books 900 A car to use at school 4,950 Student football tickets 285 Spending money 4,960 How much of the above is a qualified higher education expense for purposes of his Qualified Tuition Program?
Calvin reviewed his canceled checks and receipts this year (2022) for charitable contributions, which included an antique painting and IBM stock. He has owned the IBM stock and the painting since 2005. Donee Item Cost FMV Hobbs Medical Center IBM stock $ 7,800 $ 50,000 State Museum Antique painting 6,400 3,840 A needy family Food and clothes 680 410 United Way Cash 36,000 36,000 Calculate Calvin's charitable contribution deduction and carryover (if any) under the following circumstances. Calvin's AGI is $240,000.
John and Sandy ferguson got married 8 years a go and have a 7 year old duaghter, Samantha. In 2019, john workes as a computer technician at a local university, earning a salary of $152,000 and Sandy worked part-time as a receptiolist for a law firm, earnig $29,000.John also does some web design work on the side and reported a revenue of $4,000 and associated expenses of $750.Ferguson received $800 in qualified dividends and a $200 refund of their state income taxes. They always itemized their deductions, and thier itemized deductions were well over standard deductions amount last year. They had a qulified insurance for purposes of affordable care Act. The Ferguson reported making the following payments during the year. .State income taxes $4,000 .federal tax witholding of $21,000 .Alimony payment to Johns former wife of $10,000 (divorced 2014) .$4,000 for child support payment .$12,200 of real property taxes. $3,600 to kid care day care centre. $14,000 interest on their home mortgage…
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? Deduct the fertilizer and lime expense in the year the expense was paid. Capitalize the fertilizer and lime expense, and depreciate over a five-year recovery period. Deduct the expense only in the year the fertilizer and lime are applied to the soil. Deduct $900 [$2,100 expense – $1,200 USDA payment for fertilizer] in the year paid Please provide detailed explanation.
Marcus Gravey, an Executive Manager at Bank oF America receives a salary of $6,500,000.00 per annum and his employer provides him with a 2019 Toyota RAV4 which was purchased for $7.5million. It is estimated that Mr. Gravey’s private use of the vehicle is 45%. Mr. Gravey contributes 10% of his annual salary to an approved pension scheme. For the year of assessment 2021 calculate the following for Mr. Gravey: Statutory Income Social Security Tax, Housing Tax, Education Tax Taxable Income PAYE Net Pay
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university earning a salary of $152,100, and John worked part time as a receptionist for a law firm earning a salary of $29,100. Sandy also does some Web design work on the side and reported revenues of $4,100 and associated expenses of $800. The Fergusons received $820 in qualified dividends and a $205 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2022 AMT exemption for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,425. Federal tax withholding of $21,000. Alimony payments to Sandy's former spouse of $10,050 (divorced 12/31/2014). Child support payments for Sandy's child with…
Audrey volunteer at the homeless shelter, she worked 279 days during the year, she was required to have a uniform that cost $ 275.00 and shoes for $ 65, she traveled 5 miles each way to get to the homeless shelter her AGI $ 200,000, how much will be her charitable contribution deduction for the tax year?
Marigold's AGI was $85,000 in 2022. She incurred the following expenses: Property taxes on primary residence Unreimbursed tooth extraction Mortgage interest on primary residence Homeowner's association dues Acupuncture treatments for chronic migraines Political contribution to the Independent ABC Party Interest on credit card Gym membership $5,000 $1,200 $9,275 $1,000 $1,000 $100 $275 $475 Based on the information provided, what is the amount of expenses Marigold can deduct as an itemized deduction on Schedule A?

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