Paris operates a talent agency as a sole proprietorship, and this year she incurred the following expenses in operating her talent agency. What is the total deductible amount of theseexpenditures?$1,000 tickets to the super bowl with a film producer where no business was discussed$500 lunch with sister Nicky$700 business dinner with a client but Paris forgot to keep any records (oops!)$900 tickets to the opera with a client following a business meetingMultiple Choiceо$450$1,200$0$900$1,100

To determine the total deductible amount of the expenditures incurred by Paris in operating her…

Answered: Paris operates a talent agency as a…

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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Samantha, who is single and has MAGI of $41,400, was recently employed by an accounting firm. During the year, she spends $1,200 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $4,140 for tuition and $720 for books (which are not a requirement for enrollment in the course). Click here to access Concept Summary 9.2. If an amount is zero, enter "0". Assuming no reimbursement, how much of these expenses can Samantha deduct?
Rocky repairs TV sets in the basement of his personal residence. Rocky uses 450 square feet (20%) of his residence exclusively for the repair business. Business profit is $4,000 before any office-in-home expenses are deducted. Expenses relating to the residence are as follows: Real property taxes $5,500 Interest on home mortgage 7,000 Operating expenses of residence 3,000 Depreciation (100% amount) 5,000 The maximum home office expense deduction he can take in 2020 using the regular (actual expense) method is _____. The amount of expenses Rocky would carryover to 2021 if he uses the regular method is _____. The amount of home office expense deduction he can take in 2021 using the simplified method is _____. The amount of expenses Rocky would carryover to 2021 if he uses the simplified method is ____. Rocky should use the regular method or the simplified method? _____
A student decides to open her own business and earns $70,000 in accounting profit the first year. when deciding to open her own business she withdrew $20,000 from her savings, which earned 2.5 percent interest, took over a building that she owns and was renting to her friend for $12,500 a year. She also turned down three separate job offers with annual salaries of $30,000, $40,000 and $47,000. 1. determine the student’s total implicit cost. 2. What is the student’s economic profit from running her own business?
Jordan took a business trip from New York to Denver. She spent two days in travel, conducted business for nine days, and visited friends for five days. She incurred the following expenses: Airfare $ 500 Lodging 3,000 Meals 750 Entertainment of clients 600 Required: How much of these expenses can Jordan deduct? **wrong answers will get 10 dislikes,need a genuine and correct answer. do not copy from others.
Hannah is a teacher, single, had gross income of $50,000, and incurred the following expenses: Charitable contribution Taxes and interest on home Legal fees incurred in a tax dispute Medical expenses Supplies for her third grade class Her AGI is: X a. $49,700. b. $39,750. c. $39,700. d. $40,000. $2,000 7,000 1,000 3,000 350
A young engineer earned $85,000 in wages and other income in the last tax year. She is unmarried and from company records knows that $13,000 has been withheld for taxes. If she had $8000 in charitable donations last year, calculate if she will receive a refund or owe taxes.
Manji
Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a.$7,000 gain b.$3,000 loss c.$13,000 loss d.$2,000 gain
Audrey volunteer at the homeless shelter, she worked 279 days during the year, she was required to have a uniform that cost $ 275.00 and shoes for $ 65, she traveled 5 miles each way to get to the homeless shelter her AGI $ 200,000, how much will be her charitable contribution deduction for the tax year?

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