PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Chapter 2, Problem 4FPE
Summary Introduction
To prepare: The income and expenses statement of person R and person M for the year ending December 31, 2020.
A personal
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Pedro is about to prepare and file his annual income tax return for the year ending December 21, 2020. Pedro is an emloyed engineering manager and he practice his profession and as a consultant.
What BIR Form will be used?
Determine all items that will be included and excluded from gross income on Form 1040 based on the TCJA of 2018. List all included and excluded items in column A. In column B, explain why the item is either included or excluded.
Form 1040, Schedule C, Schedule D, Schedule E, Form 8949
Jenny Walters is a marketing assistant and earned $38,000 in 2018. She is 42 years old and has been divorced for five years. Jenny will claim head of household for 2018. She has a daughter, Julia, who is 20 years old. Julia is a full-time student. Here are some more tax facts:
Jenny's SSN is 123-34-4567 and Julia's is 654-32-1234.
Jenny's address is 100 N. Main St., Atlanta, GA 30301.
Jenny receives $1,200 per month in alimony from her ex-husband.
Jenny owns a rental property with the following financial data:
Rental Revenue - $50,000
Expenses:
Insurance - $5,000
Repairs - $10,500
Depreciation - $4,000
Jenny has interest income from corporate bonds of $2,200 and interest from municipal bonds…
Hugo Garcia is preparing his balance sheet and income and expense statementfor the year ending December 31, 2020. He is having difficulty classifying six items and sks for your help. Which,if any, of the following transactions are assets, liabilities, income, or expense items?a. Hugo rents a house for $1,350 a month.b. On June 21, 2020 Hugo bought diamond earrings for his wife and charged them using his Visa card. The earringscost $900, but he hasn’t yet received the bill.c. Hugo borrowed $3,500 from his parents last fall, but so far, he has made no payments to them.d. Hugo makes monthly payments of $225 on an installment loan; about half of it is interest, and the balance isrepayment of principal. He has 20 payments left, totaling $4,500.e. Hugo paid $3,800 in taxes during the year and is due a tax refund of $650, which he hasn’t yet received.f. Hugo invested $2,300 in a mutual fund.g. Hugo’s Aunt Lydia gave him a birthday gift of $300.
Chapter 2 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
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