(b) Chichi is unsure whether she should use her own car or rent a car to go on an extended cross-country trip for two (2) weeks during the mid-term break. Explain and identify which of the above costs are relevant and which are irrelevant in her decision.
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- es Kristen Lu purchased a used automobile for $28,600 at the beginning of last year and incurred the following operating costs: Depreciation ($28,600 + 5 years) Insurance Garage rent Automobile tax and license Variable operating cost Relevain ry The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the annual straight-line depreciation is $5,720. The car is kept in a garage for a monthly fee. Average fixed cost per mile Variable operating cost per mile Average cost per mile $ 5,720 $ 3,000 $ 1,500 $780 $ 0.11 per mile Required: 1. Kristen drove the car 22,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.)Allowing for the cutback adjustment, which of the following trips, if any, will qualify for the travel expense deduction: Group of answer choices a. Myrna went on a two-week vacation in Boston. While there, she visited her employer's home office to have lunch with former co-workers. b. Paul, a romance language high school teacher, spends summer break in France, Portugal, and Spain improving his language skills. c. Dr. Brown, a surgeon, attends a two-day seminar on financial planning out of town. d. Dr. Jones, a general dentist, attends a two-day seminar on dental implants out of town. e. None of the above.Brandi holds two jobs and attends graduate school on weekends. The education improves her skills, but does not qualify her for a new trade of business. Before going to the second job, she returns home for dinner. Relevant mileage is as follows? Home to first job 10 miles First job to second job 15 miles Home to second job 18 miles Home to university 9 miles How much of the mileage qualifies for deduction purposes?
- Lennart is currently working as a kitchen hand. Which of the following expenses incurred by Rebel can be claimed as a deduction? Select one:None of theseThe cost of parking near the restaurant on the day of the seminar, as she needed to drive directly to the seminar after work.All of the above.A vocational course Lennart is undertaking in real estate.A food hygiene seminar she paid to attendBill has just returned from a duck hunting trip. He has brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John has presented him with the following cost estimate per duck: 1. Assuming that the duck hunting trip Bill has just completed is typical, what costs are relevant to a decision as to whether Bill should go duck hunting again this season?2. Suppose that Bill gets lucky on his next hunting trip and shoots 10 ducks in the amount of time it took him to shoot 8 ducks on his last trip. How much would it have cost him to shoot the last two ducks if costs are estimated per duck? Explain.3. Which costs are relevant in a decision of whether Bill should give up hunting? Explain.c. Ira recently moved to take a job. For the first month on the new job, Ira was searching for a home to purchase or rent. During this time, his employer permitted Ira to live in an apartment the company maintains for customers during the buying season. The month that Ira occupied the apartment was not during the buying season, and the apartment would not otherwise have been occupied. The use of the apartment should qualifies as and therefore is gross income.
- Courtney receives most of her income from wages from her job as a high school teacher. She also receives supplemental income from freelance tutoring part-time during the summer. Because her tutoring income is not subject to withholding, Courtney is concerned that she will have a balance due at the end of the year. Which of the following is an option you can recommend to Courtney to avoid a balance due?Which one of the following statements is false? Group of answer choices A.Bill drives 20 each way between his home to his office – 40 miles round trip each day. During the day he drives to a client site. He drives a total of 63 miles that day. He may deduct the cost of 43 miles. B.Commuting expenses may be deductible if you are transporting tools. C.A consultant works out of her home. She may deduct the cost of driving to a client’s place of business. D.The expenses of driving between your regular job and a second job are deductible.Upon Jena’s retirement, the couple plans to relocate their home close to the beach. For this purpose, they intend to buy a house near the beach and a rental property (to fund their retirement). They do not have the funds to make these purchases. Please explain to the couple the downsizing retirement strategy most appropriate to their circumstance.
- Regarding a self-employed individual, which statement is true? (a) A primary care physician who decided to train in plastic surgery would not be able to deduct the cost of doing so. (b) An engineer could deduct the cost of going to law school as long as she disavows ever taking the bar exam – she’s going to law school only to learn about patent law (“Helpful in my engineering career!”). (c) A CPA who was tired of doing audit work and went back to UTD to take or retake every graduate tax course in order to begin shifting her practice toward tax work could deduct the cost of doing so. (d) None of the above statements is true.Jordan was terminated from his employment without just cause and started looking for a new job immediately. Jordan was fuifiling his duty to: Select one O a. be productive in society. O b mitigate Oc. ad ethically Od not competeAmy is trying to decide whether or not it would be beneficial to employ the services of a real estate broker in order to facilitate the sale of her home. She has estimated that the marketing costs and opportunity cost associated with time spent dealing with prospective buyers amounts to $5,000. If Amy were to sell the house on her own for $200,000, but a broker would have been able to negotiate a higher price of $208,556, what commission rate should Amy have been willing to accept from a real estate broker to make her indifferent between selling the house on her own and hiring a real estate broker? 2.4% ● 3.1% 5.0% 6.5%