Ali is a member of a family that consists of him, his father, his mother and his older brother. Each member of the family has his own mobile phone. Each mobile phone is on a post-paid plan, for which a monthly bill is received at the end of each month. The electricity, on the other hand, is provided to the entire house in general, with one bill is received at the end of each month. The father has recently received the electricity bill for the month. and wishes to do some analysis of electricity consumption. Assuming that the value of the electricity bill is calculated based on a constant monthly subscription fee. In the above information, the cost of electricity to Ali is: O a. A direct, variable cost O b. Anindirect mixed cost O c. Anindirect, variable cost O d. Adirect fixed cost O e. Anindirect fixed cost

Ali is a member of a family that consists of him, his father, his mother and his older brother. Each member of the family has his own mobile phone. Each mobile phone is on a post-paid plan, for which a monthly bill is received at the end of each month. The electricity, on the other hand, is provided to the entire house in general, with one bill is received at the end of each month. The father has recently received the electricity bill for the month. and wishes to do some analysis of electricity consumption. Assuming that the value of the electricity bill is calculated based on a constant monthly subscription fee. In the above information, the cost of electricity to Ali is: O a. A direct, variable cost O b. Anindirect mixed cost O c. Anindirect, variable cost O d. Adirect fixed cost O e. Anindirect fixed cost

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 10P

See similar textbooks

Similar questions

Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?
Ali is a member of a family that consists of him , his father , his mother and his older brother . Each member of the family has his own mobile phone . Each mobile phone is on a post -paid plan , for which a monthly bill is received at the end of each month . The electricity , on the other hand , is provided to the entire house in general , with one bill is received at the end of each month . The father has recently received the phone bill of Ali and wishes to do some analysis of the phone consumption . Assuming that the value of the phone bill is calculated based on the number of minutes consumed with no subscription fees . In the above information , the cost of the phone bill to Ali is : a. A direct variable cost b. An indirect variable cost A direct fixed cost d . An indirect fixed cost e .An indirect mixed cost
Bradley has two college-age children, Clint, a freshman (his first year in college) at State University, and Abigail, a junior at Northwest University (her third year of college). Both Clint and Abigail are full-time students. Bradley is in graduate school. Clint’s expenses for the year are as follows: $3,200 tuition and $500 books and course materials. Abigail’s expenses for the year are as follows: $7,200 tuition, $1,200 books and course materials, and $4,500 room and board. Bradley paid $5,000 of tuition for graduate school and $600 for books. Bradley is married, files a joint tax return, claims both children as dependents, and has a combined AGI with his wife of $139,000 for 2020. Bradley has determined that the available education credits are more beneficial than the available deductions. Determine the following: A. Clint: Which credit should he take? Total eligible expenses: Show calculation of maximum credit allowed: B. Abigail: Which credit should she take?…
Luis Barillas and his wife, Dora, have been married for two years and have a 1-year-old son. They live in Charlotte, North Carolina, where Luis works for Advanced Marketing Analytics. He earns $ 3,200 per month, of which he takes home $ 2,300. Luis and his family are entitled to receive the benefits provided by the company's group health insurance policy. In addition to major medical coverage, the policy provides a monthly disability income benefit amounting to 20 percent of the employee's average monthly take-home pay for the most recent 12 months prior to incurring the disability. ( Note: Luis' average monthly take-home pay for the most recent year is equal to his current monthly take-home pay.) In case of complete disability, Luis would also be eligible for Social Security payments of $ 600 per month. Dora is also employed. She earns $ 600 per month after taxes by working part-time at a nearby grocery store. As a part-time employee, the store gives her no benefits. Should Luis…
Mark Rosenberg and Trina Adams are to be married in two months. Both are employed full time and currently have their own apartments. Once married, they will move into Trina's apartment because it is larger. They plan to use Mark's rent money to begin saving for a down payment on a home to be purchased in four or five years. Mark has a checking account at a branch of a large regional commercial bank near his workplace where he deposits his paychecks. He also has three savings accounts-one at his bank and two small accounts at a savings and loan association near where he went to college. Mark pays about $30 per month in fees on his various accounts. In addition, he has a $10,000 certificate of deposit (CD) from an inheritance; this CD will mature in five months. Trina has her paycheck directly deposited into her share draft account at the credit union where she works. She has a savings account at the credit union as well as a money market account at a stock brokerage firm that was set up…
Edgar is a mental health counselor who uses a portion of his home as his office. His home is 2,500 square feet, and his office space occupies 1,500 square feet. Rent expense is $18,000 a year, utilities expense is $2,000 a year, and maintenance expenses are $3,000 a year. What amount of these expenses can be allocated to his home office?
Donald Jefferson and his wife, Maryanne, live in a modest house located in a Los Angeles suburb. Donald has a job at Pittsford Cast Iron that pays him $50,000 annually. In addition, he and Maryanne receive $2,500 interest from bonds that they purchased 10 years ago. To supplement his annual income, Donald bought rental property a few years ago. Every month he collects $3,500 in rent from all of the property he owns. Maryanne manages the rental property, and she is paid $15,000 annually for her work. During 2015, Donald had to have the plumbing fixed in the houses that he rents as well as the house in which he and Maryanne live. The plumbing bill was $1,250 for the rented houses and $550 for the Jeffersons’ personal residence. In 2015, Donald paid $18,000 for mortgage interest and property taxes—$12,650 was for the rental houses, and the remaining $5,350 was for the house occupied by him and his wife. The couple has three children who have graduated from medical school and now are…
Ralph has two accounts with South Trust National Bank. Over the summer, he mows lawns and deposits his earnings weekly into his savings account. Ralph also eats out every day and uses the money in his checking account to pay for his meals. Besides these two transactions, he does not deposit or withdraw funds from either of these accounts.The amount in his savings account over time is represented in the table below. He spends$50 on food each week, and after three weeks, he has $1,600 in his checking account. Ralph Saving Account Weeks Total Amount 0 2 700 6 1100 12 1700 Part A How much money was in his saving account initially (at week zero)? Show how you determine your answer. Part B Create an equation to model Ralph’s savings account and create another equation to model Ralph’s checking account. After how many weeks will he have more money in his saving account?
Jack paid $5,000 in daycare expenses for his five-year-old daughter so he could work. His AGI for the year was $37,500 (all earned income). What is the amount of his child and dependent care credit? Show your working!!
Carey and Pat were good friends and neighbors in an upscale neighborhood near several highly rated golf courses in Arizona. During the winter, both Carey and Pat decided to rent their homes (at a premium) to groups of golfers from the New York area who wanted to get out of the snow and enjoy sunshine and golf for a couple of weeks during the winter. While their homes were rented, Carey and Pat vacationed together in Cancun. In January 2020, Carey rented his home for 14 days and received $14,000 in rent. Pat also rented his home for the same 14 days and received $16,000 in rent. Near the end of the 14-day rental period, Pat got a call from the renters, who wanted to extend their stay for one day. Pat agreed to the extension and charged the group $2,000 for the extra day. When preparing his 2020 tax return, Pat discovered that taxpayers who rent their home for more than 14 days are required to report all of their rental income on their tax returns. Pat didn’t think it was fair that he…
Harry has worked at a medium-size interior design firm for five years and earns a salary of $4,080 per month. He also receives $3,000 in interest income once a year from a trust fund set up by his deceased father's estate. Belinda earns a salary of $6,400 per month, and she has many job-related benefits including flexible benefits program, life insurance, health insurance, a 401(k) retirement program, workplace financial education, and a credit union. The Johnsons live in an old apartment located approximately halfway between their places of employment. However, their rent will increase by $100 a month in July. Harry drives about ten minutes to his job, and Belinda travels about 15 minutes via public transportation to reach her downtown job. Harry and Belinda's apartment is very nice, but small, and it is furnished primarily with furniture given to them by some of his friends. Soon after getting married, Harry and Belinda decided to begin their financial planning. Fortunately each had…
Victor and Maria, both in their late 30s, have two children: Jacob, age 13, and Nicholas, age 15. Victor has had a long sales career with a retail appliance store in Fargo, North Dakota earning $53,000 annually. Maria works as a medical records assistant earning $32,000. (a) Victor and Maria regularly buy and sell a number of items on eBay, Craig’s List, and through the free community newspaper, from which they earn about $4,000 each year. What will the accumulated future value of this stream of investment contributions be in 20 years if the annual earnings were invested annually and provided a 5% return each year?