David and Gary are students at Berkeley College. They share an apartment that is owned byGary. Gary is considering subscribing to an Internet provider that has the followingpackages available:PackageA. Internet accessB. Phone servicesC. Internet access + phone services(a) Stand-alone(b) IncrementalDavid primary userGary primary userPer Month(c) Shapley$851590Requirement 1. Allocate the $90 between David and Gary using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. (Roundyour answers to the nearest cent.)Costs allocated toDavidGaryCDavid spends most of his time on the Internet ("everything can be found online now").Gary prefers to spend his time talking on the phone rather than using the Internet ("goingonline is a waste of time"). They agree that the purchase of the $90 total package is a"win-win" situation.Requirements1. Allocate the $90 between David and Gary using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapleyvalue method.2. Which method would you recommend they use and why?

Finding, collecting, and assigning costs to cost items is the process of cost allocation. For the…

Answered: David and Gary are students at Berkeley…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 9MCQ

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Your supervisor has asked you to research the following situation concerning Scott and Heather Moore. Scott and Heather are married and file a joint return. Scott works full-time as a wildlife biologist, and Heather is a full-time student enrolled at Online University. Scott’s earned income for the year is $36,000. Heather does not have a job and concentrates solely on her schoolwork. The university she is enrolled in offers courses only through the Internet. Scott and Heather have one child, Elizabeth (age 8), and pay $3,000 for child care expenses during the year. Go to the IRS website (www.irs.gov). Locate and review Publication 503. Write a memorandum stating the amount of child and dependent care credit that Scott and Heather Moore can claim. (An example of a file memorandum is available at the website for this textbook located at www.cengagebrain.com.
Ben and Mike are students at Berkeley College. They share an apartment that is owned by Mike. Mike is considering subscribing to an Internet provider that has the following packages available: Package Per Month A. Internet access $60 B. Phone services 20 C. Internet access + phone services 75 Ben spends most of his time on the Internet ("everything can be found online now"). Mike prefers to spend his time talking on the phone rather than using the Internet ("going online is a waste of time"). They agree that the purchase of the $75 total package is a "win–win" situation. Requirements 1. Allocate the $75between Ben and Mike using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method. 2. Which method would you recommend they use and why? Requirement 1. Allocate the $75between Ben and Mike using (a) the stand-alone cost-allocation method, (b) the…
In 2020, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs.What is their earned income credit in the following alternative scenarios if they file jointly? Use Exhibit 8-10(https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/spilker_12e/exhibit_8_10_new.htm). a. Their AGI is $15,000, consisting of $5,000 of capital gains and $10,000 of wages. Q: what is earned income credit?
Marcus runs a business selling reclining chairs. He buys 540 chairs for $55 each (including GST) and sells for $85 each (inc GST). He is registered for GST credits. How much is he liable to remit to the ATO assuming all the chairs are sold? For all answers (unless otherwise indicated), please round your answer to the nearest dollar and use numerals only eg 9999
PPPeter operates a dental office in his home. The office occupies 250 square feet of his residence, which is a total of 1,500 square feet. During 2021, Peter pays rent for his home of $12,000, utilities of $4,800, and maintenance expenses of $1,200. What amount of the total expenses should be allocated to the home office? a.$3,000 b.$2,500 c.$2,000 d.$0 e.None of these choices are correct.
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