You interviewed a new client and these were the facts provided. Provide them with a brief explanation of taxreason for each Jerry was injured playing football and his parents paid for the physical therapy that cost them $4000 above what the health insurance paid, braces for Julie for the final year cost $2200. The parents have 2health insurance plans, Stacy from her employer paid plan that covers her and the children. Charles has a self-emploved insurance plan that he pays $9000 a vear through his business.

Certainly, here's a breakdown of the potential tax reasons Jerry and Julie's medical expenses might…

Answered: You interviewed a new client and these…

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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After you determine the Amount Realized, Type and amount of Basis, and Gain or Loss of the following, explain what will be included in the Taxpayers income and why: Lois and Peter bought a home in Rhode Island when they got married in 1985 for 100,000. In December 2006 Peter got a job in Los Angeles to develop a cartoon sitcom. He and Lois moved out of their home and rented it out until 2009. From January 2009 through October 2009 there were no tenants, and Lois and Peter moved back in October 2009. April 2011 they listed their house for sale. They sold the house for 500,000.
Edward is attending school and had a financial emergency. He contacted his school's financial aid office and asked about a subsidized student loan, Edward's school facilitates these loans and determined that Edward qualifies for a $270 loan. Edward is able to repay the loan over the next 12 months while he is still in school. How much interest will Edward pay on this loan? O $0 because interest on subsidized loans does not accrue until Edward stops attending school. O $13.50 because the interest rate is 5%. O $6.75 because Edward has been making payments on the loan. None of the answer choices are correct.
Rekha, a 75 year old widowed retiree wants to apply for a Centrelink payment. Over the past year, she has gifted $50,000 of her savings to her family. She has an investment property, with a mortgage of $60,000 outstanding, and earns $15,000 per year in rental income. She also has a casual job, earning $36,000 per year. She has an account-based super fund balance of $240,000. She owns her residential home which is valued at $1.8 Million, and owns the following assets: Asset Managed Fund Investment property Share Portfolio Bank Savings Account Car Pre-paid Funeral Furniture Jewellery Total Asset Value $20,000 $350,000 $19,000 $8,000 $28,000 $25,000 $18,000 $4,000 a. Calculate assessable income, including deemed income.
Mr. Sweeney has a 12-year-old nephew, Todd, who is trying to save up for a $300 bike. Mr. Sweeney wishes to help Todd, but he also wants to teach him a lesson in hard work and the value of money. Mr. Sweeney and Todd strike the following bargain: each week, Todd will mow the lawn for Mr. Sweeney, and in return, Mr. Sweeney will deposit $25 in Todd's savings account, which pays an annual percentage interest rate of 5.2%. How many months will it take Todd to save up enough money to buy the bike? Assume there are 4 weeks in a month. a. 2.50 months O b. 2.15 months C. 3.02 months d. 3.53 months e. 4.08 months
Nancy is a widow with two teenage children. Nancy's gross income is 54200 per month, and taxes take about 22% of her income. Using the income method, Nancy calculates she will need to purchase about eight times her disposable income in life insurance to meet her needs. How much insurance should Nancy purchase?
i need the answer quickly
Gabriella is an IT consultant. Three years ago, she completely lost her sight as the result of an accident. Gabriella has returned to work on a part-time basis, but only earning $2,000 a month, instead of the $5,000 she made prior to her accident. She has an individual disability insurance policy that has both residual disability and presumptive disability clauses. The policy has a monthly benefit of $3500. What amount of monthly benefit should Gabriella be receiving presently, assuming that the benefit is payable for ten years? Question 37 options: $2,100 per month. $3,500 per month. $5,000 per month. $1,500 per month.
Deja owns a photo printing business and wants to purchase a new state-of-the-art photo printer that she found online for $9,275, plus sales tax of 5.5%. The supply company is offering cash terms of 2/15, n/30, with a 1.5% service charge on late payments, or 90 days same as cash financing if Deja is approved for a company line of credit. If she is unable to pay within 90 days under the second option, she would have to pay 22.9% annual simple interest for the first 90 days, plus 2% simple interest per month on the unpaid balance after 90 days. Deja has an excellent credit rating but is unsure of what to do. a) If Deja took the cash option and was able to pay off the printer within the 15-day discount period, how much would she save? How much would she owe? b) If Deja takes the 90 days same as cash option and purchases the printer on December 30 to get a current-year tax deduction, using exact time, what is her deadline for paying no interest in a non-leap year? In a leap year?
1. Alex owns a home with a replacement value of $320,000. The homeowners policy has an 80% coinsurance clause and a face value of $240,000. Damage caused by a fire costs $125,280 to repair. What compensation will the insurance company pay? 2. Using Table 19-5 and 19-6, find the annual premium for an automobile insurance policy for Sandra who has a good credit rating. She lives in Territory 1 and buys 50/100/50 coverage for her liability protection. Sandra's vehicle is Model Class 2 and is five years old. In addition to the liability coverage, she purchased comprehensive and collision insurance with a $250 deductible on comprehensive and a $500 deductible on collision. TABLE 19-5 Annual Automobile Liability Insurance Premiums Territory 1 Territory 2 Liability Limits BAD GOOD ОСС GOOD ОСС BAD 50/100/50 385 600 846 354 552 778 100/300/100 425 682 961 391 627 884 250/500/250 460 750 1036 423 690 953 500/1000/500 530 843 1208 488 776 1111 GOOD = good credit; OCC = occasional payments past…
Ned is a head of household with a dependent son, Todd, who is a full-time student. This year Ned made the following expenditures related to Todd's support: Auto insurance premiums $ 1,700 Room and board at Todd’s school 2,200 Health insurance premiums (not through an exchange) 600 Travel (to and from school) 350 What amount can Ned include in his itemized deductions?
Your mother's employer offers a tax-deferred retirement plan (a 401-b plan, which was authorized by Congress to encourage savings) which would permit her to invest, tax-free until she retires, up to 15 percent of her salary. Once you are out of school (one year from today), she figures she can save $1,000 every 6 months, or $2,000 per year. The insurance company which manages the retirement fund promises to pay a stated (or simple) rate of 12 percent per year, but with quarterly compounding. If your mother invests $1,000 each six months, starting six months after you graduate (or 18 months from today), how much will she have 5 years from now, assuming the last payment is made at the end of Year 5? (Hint: She will make a total of 8 payments.) Group of answer choices $9,929 $12,300 $12,462 $9,897 $10,000
Leslie graduated with her bachelor's degree in Accounting. She works for a CPA firm that pays her tuition ($8,150 per year) for her so that she can receive her MBA. How much of the $8,150 tuition benefit does Leslie need to include in her income?

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