Question Content Area Exercise 9-12 (
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- Exercise 9-12 (Algorithmic) (LO. 2) Lara uses the standard mileage method for determining auto expenses. During 2023, she used her car as follows: 23,200 miles for business, 4,640 miles for personal use, 6,960 miles for a move to a new job, 2,320 miles for charitable purposes, and 1,160 miles for medical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara's deduction for: If required, round your answers to the nearest dollar. a. Business? $15,198 b. Charitable? 325 c. Medical? 255arrow_forwardProblem 3-37 (Algorithmic) (LO. 3, 7) Taylor, age 15, is claimed as a dependent by her parents. For 2021, she has the following income: $5,200 wages from a summer job, $1,430 interest from a money market account, and $2,100 interest from City of Chicago bonds. If required, round your answers to the nearest dollar. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Click here to access the 2021 tax rate schedule. a. Taylor's standard deduction for 2021 is $ Taylor's taxable income for 2021 is $ b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. Compute Taylor's tax liability. [Her parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).]arrow_forward6arrow_forward
- pare.8arrow_forwardProblem 9-28 (b) (LO. 2) Ricardo, who is self-employed, uses his automobile 85% for business and during 2020 drove a total of 32,200 business miles. Information regarding his car expenses is listed below. Business parking $345 Auto insurance 2,800 Auto club dues (includes towing service) 275 Toll road charges (business-related) 205 Oil changes and engine tune-ups 180 Repairs 1,890 Depreciation allowable 3,600 Fines for traffic violations (incurred during business use) 95 Gasoline purchases 4,125 What is Ricardo's deduction in 2020 for the use of his car if he uses: If required, round your final answers to the nearest dollar. a. The actual cost method? 11,407 x b. The automatic mileage method? 17,227 x $1arrow_forwardPlease don't give image formatarrow_forward
- Please Do not Give Image format Otherwise rejected my questionarrow_forwardQ3 - Medical Expenses (7 points) Ms. Hansika and her spouse, Mr. Kumar, have 2023 medical expenses totaling $4000 and $2000 respectively. Regarding their income, Ms. Hansika has 2023 net income of $100,000, and Kumar's net income is $2000. They have two children, Anna is 11, has 2023 medical expenses of $3,500, and no income. Bedir is 22, has 2023 medical expenses of $7,000, and net income of $9,500. Ms. Hansika pays all of the medical expenses. What is the medical expense tax credit for 2023. (NB. The threshold for 2023 is $2635)arrow_forwardExercise 13-25 (Algorithmic) (LO. 1) Sally owns real property for which the annual property taxes are $16,030. She sells the property to Kate on April 2, 2021, for $801,500. Kate pays the real property taxes for the entire year on October 1, 2021. Assume a 365-day year. Round any division to four decimal places. Round your final answers to the nearest dollar. a. How much of the property taxes can be deducted by Sally and how much by Kate? Sally can deduct $ 3,997 x and Kate can deduct s Feedback b. What effect does the property tax apportionment have on Kate's adjusted basis in the property? Kate's adjusted basis for the property is increased ✓by the s Feedback 12,033 X of the property taxes. c. What effect does the apportionment have on Sally's amount realized from the sale? Sally paid none of the real property taxes and is realized is increased ✔by this amount. Feedback she paid that is apportioned to Sally. ✔permitted to deduct the apportioned share of s d. How would the answers in…arrow_forward
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