hello teacher please solve questions Tighe won a new automobile from his employer for being the topsalesperson in the entire firm. The auto cost the employeronly $34,000 because he purchased a fleet of cars from the dealer;it had a retail price of $37,000. In addition, Tighe's employer gavehim $5,000 with which to pay the taxes on the prize. How much mustTighe include in his gross income?a. $42,000.b. $37,000.c. $35,000.d. $32,000.

Step 1: Definition of Gross IncomeGross income includes all income received from any source unless…

Answered: Tighe won a new automobile from his…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter11: Individuals As Employees And Proprietors

Section: Chapter Questions

Problem 4CE

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Similar questions

Roberto invested 18,000 in a chicken production operation. Using nonrecourse notes, the business purchases 120,000 worth of grain to feed the chickens. If Robertos share of the expense is 26,000, how much can he deduct?
Fred, a self-employed taxpayer, travels from Denver to Miami primarily on business. He spends five days conducting business and two days sightseeing. His expenses are 400 (airfare), 150 per day (meals), and 300 per night (lodging). What are Freds deductible expenses?
How much must thomas include in his gross income?
Jill is self-employed in the commercial plant care business. The business earned $120,000 in revenue and has $36,000 in business expenses. How much does Jill owe in FICA taxes? Select answer from the options below $11,868.82. $16,955.46. $12,852.00. $18,360.00.
How much must Johnson include in her gross income??
Kensley enjoys playing blackjack at the casino every Thursday night after work. This year, she has won $3,850, which she included in gross income. She lost $9,540. Her adjusted gross income is $150,000. How much of the losses can Kensley deduct? (Do not use commas or dollar signs. Round to the nearest dollar.)
K2.
1.Link wants to make $100,000 after tax on his new venture into selling pizza-on-a-stick, using a "push along" cart at the beach. For each pizza-on-a-stick, he incurs raw material costs of $5 and sells them for $10. He pays a salary to his friend Zelda, who operates the cart for $50,000. If he buys the cart himself, he will incur fixed expenses of $20,000. Or, he can rent the cart and pay $1 to the cart supplier each time he sells a pizza stick. What is his point of indifference? That is, at what volume of pizza sticks is he indifferent about renting or buying the cart? (Insert a number ONLY) 2. Like Link, Chrom sells pizza-on-a-stick at the beach. But Chrom also sells dogs-in-a-pocket, which are hot dogs you can carry with you that have enough preservatives to survive in your pocket for years. For each pizza-on-a-stick, Chrom incurs raw material costs of $5 and sells them for $10. He incurs material costs of $3 for the dogs and sells them for $5. He sells 3 times as many dogs as he…
Dennis is a self-employed hair stylist who operates a salon in his home. The property taxes and interest allocated to the business amount to $5,000, maintenance and utilities allocated to the business total $2,100, and depreciation allocated to the business use of the home equals $3,100 for the current tax year. a. If Dennis' gross revenue after deducting supplies for his business is $5,900 for the current tax year, calculate his allowable deductions for the home office. b. If Dennis' gross revenue after deducting supplies for his business is $13,800, calculate his allowable deductions for the home office.
Rhett made his annual gambling trip to Uwin Casino. On this trip Rhett won $430 at the slots and $1,380 at poker. Also this year, Rhett made several trips to the racetrack, but he lost $790 on his various wagers. What amount must Rhett include in his gross income?
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?
Ken is a self-employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken full-time for the last four years. The office assistant earns $30,000 annually, and each drafter earns $40,000. After deducting all expenses and one-half of self-employment taxes, Ken's net earnings are $310,000. Ken is considering whether to establish a SEP plan and has a few questions: Is he required to cover his employees under the plan? Why? Or Why not? If his employees must be covered, what is the maximum amount Ken can contribute on their behalf? What is the maximum amount Ken can contribute for himself if the employees are not covered? If Ken is required to contribute to his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? (Hint, calculate the employees' amount first), Ignore any changes in Ken’s self-employment tax.

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