Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 3, Problem 2MCQ
To determine
Introduction:
Taxable income refers to the income derived after specific deductions. A sole proprietor is a person who is the only of the business and is supposed file Schedule C for the earnings from business.
To choose: The correct option.
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Bailey Plyler has three employees in his carpet cleaning business. The payroll is semimonthly and the employees earn $710, $835, and $1100 per pay period. Based on the fact that the employer is required to pay the SUTA tax, calculate when and in what amounts FUTA tax payments are to be made for the year.
Breanna Vail is a self-employed accountant who has one less-than-half-time employee. During 2019, the following items existed for her business:
Accounting services revenue: $100,000
Payments to Breanna: $40,000
Wages to her employee: 25,000
Rent Expense: 12,000
Tax preparation software: 3,500
Office supplies and utilities: 3,000
Payroll tax expense for her employee: 1,800 (federal and state)
Business meals expenses: 1,000
Personal health insurance premiums: 3,600
Personal Social Security Tax: 7,560
What is the amount of Breanna's Schedule C earnings for 2019?
a) $46,316
b) $56,000
c) $14,000
d) $54,200
If you are able to please explain each step and bold the answers.
Chapter 3 Solutions
Income Tax Fundamentals 2020
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Which of the following formulas represents the...Ch. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Heather drives her minivan 953 miles for business...Ch. 3 - Prob. 8MCQCh. 3 - Prob. 9MCQCh. 3 - Under the high-low method, the federal per diem...
Ch. 3 - Prob. 11MCQCh. 3 - Prob. 12MCQCh. 3 - Prob. 13MCQCh. 3 - Prob. 14MCQCh. 3 - Prob. 15MCQCh. 3 - Prob. 16MCQCh. 3 - Prob. 17MCQCh. 3 - Prob. 18MCQCh. 3 - Prob. 19MCQCh. 3 - Prob. 20MCQCh. 3 - Prob. 21MCQCh. 3 - Prob. 22MCQCh. 3 - Prob. 23MCQCh. 3 - Stewie, a single taxpayer, operates an activity as...Ch. 3 - Prob. 2PCh. 3 - Lawrence owns a small candy store that sells one...Ch. 3 - Business with gross receipts of $25 million or...Ch. 3 - Teresa is a civil engineer who uses her automobile...Ch. 3 - Prob. 7PCh. 3 - Martha is a self-employed tax accountant who...Ch. 3 - Prob. 9PCh. 3 - Go to the U.S. General Services Administration...Ch. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Marty is a sales consultant. Marty incurs the...Ch. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Cooper and Brandy are married and file a joint...Ch. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Cindy operates a computerized engineering drawing...Ch. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Lew is a practicing CPA who decides to raise...
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