Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Question
Chapter 10, Problem 2AP
a.
To determine
Compute Person R’s home office deduction, if her net profit before the deduction was $300,000.
b.
To determine
Compute Person R’s home office deduction, if her net profit before the deduction was $4,000.
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Rhea Xu is a self-employed professional singer. She resides in a rented apartment and uses one room exclusively as a business office.
This room includes 405 of the 2,700 square feet of living space in the apartment. Ms. Xu performs in recording studios and concert
halls, but she conducts all of the administrative duties with respect to the business in her home office. This year, Ms. Xu's apartment
rent was $60,000. She paid $6,400 to a housekeeping service that cleaned the entire apartment once a week and $3,200 for renter's
insurance on the apartment furnishings.
Required:
a. Compute Ms. Xu's home office deduction assuming that her net profit before the deduction was $420,000.
b. Compute Ms. Xu's home office deduction assuming that her net profit before the deduction was $5,200.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute Ms. Xu's home office deduction assuming that her net profit before the deduction was $420,000.
Home office…
Rhea Xu is a self-employed professional singer. She resides in a rented apartment and uses one room exclusively as a business
office. This room includes 390 of the 2,600 square feet of living space in the apartment. Ms. Xu performs in recording studios and
concert halls, but she conducts all of the administrative duties with respect to the business in her home office. This year, Ms. Xu's
apartment rent was $59,000. She paid $6,300 to a housekeeping service that cleaned the entire apartment once a week and
$3,100 for renter's insurance on the apartment furnishings.
Required:
1. Compute Ms. Xu's home office deduction assuming that her net profit before the deduction was $410,000.
2. Compute Ms. Xu's home office deduction assuming that her net profit before the deduction was $5,100.
Ann is a self-employed restaurant critic who does her work exclusively from a home office. Ann's income is $25,000 before the home office deduction
this year. Her office takes up 200 square feet of her 1,000-square-foot apartment. The total expenses for her apartment are $6,000 for rent, $1,000 for
utilities, $200 for renter's insurance, and $800 for pest control and other maintenance.
What is Ann's home office deduction?
Chapter 10 Solutions
Principles Of Taxation For Business And Investment Planning 2020 Edition
Ch. 10 - Can a sole proprietorship be described as a...Ch. 10 - Mrs. Liu owns a business as a sole proprietor....Ch. 10 - This year, Mr. Pitts sole proprietorship generated...Ch. 10 - This year, Firm Q, a cash basis taxpayer, remitted...Ch. 10 - Prob. 5QPDCh. 10 - Define the tax base for the self-employment tax....Ch. 10 - Prob. 7QPDCh. 10 - Prob. 8QPDCh. 10 - Prob. 9QPDCh. 10 - Prob. 10QPD
Ch. 10 - Prob. 11QPDCh. 10 - Prob. 12QPDCh. 10 - Prob. 13QPDCh. 10 - Prob. 14QPDCh. 10 - Prob. 2APCh. 10 - Prob. 3APCh. 10 - Prob. 4APCh. 10 - Colin, a self-employed consultant, uses a room of...Ch. 10 - Prob. 6APCh. 10 - Prob. 7APCh. 10 - For 2019, Ms. Deming earned wages totaling...Ch. 10 - Calculate the total Social Security and Medicare...Ch. 10 - Prob. 11APCh. 10 - Prob. 12APCh. 10 - Jane is a self-employed attorney. This year, her...Ch. 10 - Prob. 14APCh. 10 - Prob. 15APCh. 10 - Amit is a limited partner in Reynolds Partnership....Ch. 10 - Kari is a limited partner in Lizard Partnership....Ch. 10 - Rochelle is a limited partner in Megawatt...Ch. 10 - Prob. 19APCh. 10 - Prob. 20APCh. 10 - Prob. 21APCh. 10 - Prob. 23APCh. 10 - AV Inc. is a member of an LLC. This year, AV...Ch. 10 - Prob. 25APCh. 10 - Prob. 26APCh. 10 - Prob. 27APCh. 10 - Prob. 28APCh. 10 - Prob. 29APCh. 10 - Refer to the facts in the preceding problem. BLS...Ch. 10 - Refer to the facts in part (c) of the preceding...Ch. 10 - For each of the following situations, indicate...Ch. 10 - a. If Video Associates is a partnership, and her...Ch. 10 - Prob. 34APCh. 10 - Prob. 1IRPCh. 10 - Javier is a full-time employee of B Inc. and...Ch. 10 - Mr. and Mrs. Chou file a joint income tax return....Ch. 10 - Travis is a professional writer who maintains his...Ch. 10 - Prob. 5IRPCh. 10 - Prob. 6IRPCh. 10 - Prob. 7IRPCh. 10 - Prob. 8IRPCh. 10 - Prob. 9IRPCh. 10 - Paulas Schedule K-1 from an LLC reported a 12,000...Ch. 10 - Marcus, a cash basis individual, is a general...Ch. 10 - Prob. 12IRPCh. 10 - Mr. and Mrs. West are the only shareholders in WW,...Ch. 10 - Prob. 14IRPCh. 10 - Prob. 15IRPCh. 10 - Prob. 16IRPCh. 10 - Prob. 17IRPCh. 10 - Prob. 1RPCh. 10 - Prob. 2RPCh. 10 - Herold had been a calendar year S corporation...Ch. 10 - Prob. 4RPCh. 10 - Mr. and Mrs. Janus operate a restaurant business...Ch. 10 - Prob. 2TPCCh. 10 - Prob. 3TPCCh. 10 - Marla recently inherited 50,000 and is considering...
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