How is income defined by the IRC? For example, suppose you decided to hold a garage sale one fine summer weekend. The proceeds of such came out to $40. Do you report this? Why or why not?
Q: A person works and earns $4440 dollars but on a pay stub pays 41% to tax. How much money is left…
A: Taxable income: It is the gross total income on which the taxes are imposed by the government for a…
Q: You earned last year 52,000, had interest income of 170, educator expenses of 800 dividend income of…
A: Gross income is total income earned including earnings and income from interest and income from…
Q: Required: Briefly explain whether the $7,000 and the $180,000 receipts constitutes ordinary income'…
A: The answer for the question on ordinary income is discussed hereunder: What is ordinary income?…
Q: If you fill up your car with $20 worth of gas in March and charge the purchase to your credit card…
A: We have to discuss the concept of Accrual for the given question. Accrual concept means expenses and…
Q: Home ownership has other expenses, including taxes, homeowner's insurance and utilities. The annual…
A: Amount borrowed = $145,000 a) Annual property tax = 1% of amount borrowed = $145,000×1%=$1,450…
Q: Income statement preparation Adam and Arin Adams have collected their personal income and expense…
A: Income and expenses statement in personal finance refers to the statement which comprises of all…
Q: ennifer Pontesso, from Lincoln, Nebraska, wants to better understand her financial situation. Use…
A: Net worth: Deduction of Total debts from the total assets called net worth. Net worth = Total assets…
Q: 1. From the above information what is Mr. Smith’s: Gross Income: Standard Deduction:…
A: Hi! Thank you for the question, as per the honor code, we are allowed to answer three subparts at a…
Q: Suppose that the local sales tax rate is 7% and you purchase a car for $14,600. a. How much tax is…
A: Tax: The amount of money that a government makes people pay based on their income, the value of…
Q: Your grandmother is visiting Guadalajara to start a new retirement life. She is interested in…
A: Cash Flow Statement and the Balance Sheet are financial statements; these statements are prepared to…
Q: Sara borrowed funds to buy furniture for her business. Her business paying $200 at the end of each…
A: Therefore, the cash price of the furniture is $8,192.38.
Q: Cameron Bly is a sales manager for an automobile dealership. He earns a bonus each year based on…
A: Cameron Bly works as a sales manager at a car dealership. He receives a bonus based on revenue…
Q: Using the accounting equation to analyze transactions Tiny Town Kennel earns service revenue by…
A: Indicate the effects of the business transactions;
Q: In your computations, round the per-month amount to the nearest dollar and use rounded amount in…
A: Requirement:-a Expense incurred for the investigation is considered as the investigation expenses…
Q: The Bainters want to estimate annual costs for purchasing the home so they can compare them with the…
A: Assumption:: Home loan of $482,000 for 30 years period at the rate of 3.99%p.a. Mortgage is paid…
Q: If you have a small business and you are earning Php 10,000 a month, should you pay any tax?
A: Taxation is defined as the financial charge imposed on an individual levied by the authority or…
Q: Lew started a business writing a popular syndicated Japanese gardening column in the current year…
A: The income statement is one of the essential parts of the financial statements used for reporting…
Q: Pick a discretionary expense that you incur on a regular basis, such as buying premium coffees…
A: Amount of the present cash flows when multiplied by the given interest rate (taking time value of…
Q: E. On May 30, 2012 a lady manufacturing engineer loaned $ 15,000 in the bank for the expansion of…
A: Simple interest: Simple interest is the interest payable on a certain amount based on the…
Q: ster has a small store. For the current month, she purchased merchandise costing 75000 for which she…
A: Part a: The cost of sales includes the purchasing cost of the goods which are sold by the company.…
Q: Ginny Fieg expanded her beauty salon by increasing her space by 20%. Ginny paid property taxes of…
A: Property tax is the tax liability which is imposed by the government on the property owned by an…
Q: Using the accounting equation to analyze transactions Tiny Town Kennel earns service revenue by…
A: Accounting equation: Accounting equation is an accounting tool expressed in the form of an equation,…
Q: Using the information below, determine Brian's Net Worth. Savings Account: $5,400, Checking Account:…
A: Net worth = Total assets - Total liabilities
Q: Elisha is starting a tuxedo rental business and plans to charge $80 for the first day plus an extra…
A: The equation for the tuxedo rental business I= $80+ $110 *D Where I= Total income D= number of extra…
Q: How much is the opportunity cost associated with starting the new business?
A: Opportunity Cost: Opportunity cost means the cost of missed opportunity. It refers to the…
Q: Would a person with the following income and expenses qualify for a home based on the front end…
A: The front-end affordability ratio is an accounting method that represents the proportion of gross…
Q: Mr. Smith has had a very good year. It is early November, and he wants to ensure he sets enough…
A: Itemized deduction: These deductions are subtractions from a taxpayer’s adjusted gross income (AGI)…
Q: Financial update as of June 15 • Your existing business generates $111,000 in EBIT. • The corporate…
A: Free Cash Flow = EBIT - Tax + Depreciation - Working capital changes Working capital changes =…
Q: Word has gotten around that you know accounting and can explain it well. Jim, another of your…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The Smith familly had an income after income taxes a Spending in 2019 was food $7.000, clothing…
A: Particular…
Q: Lori Ramos operates a small retail kiosk in a mall located in Vancouver, British Columbia. She has…
A: Quick Method :— Under the Quick method, you still charge the standard HST rate 5% on any taxable…
Q: Ernie Bilko has a business idea. He wants to rent an abandoned gas station for just the months of…
A: In the finance area, the term time value of money states that a sum of money available may have…
Q: Calculating the Cost of ATM Fees. If a person has ATM fees each month of $16 for 7 years, what…
A: ATM fees per month = $ 16 Period = 7 Years Number of months = 16*7 = 112
Q: answer the following questions and show your steps for your calculations (you must show the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: You decide to earn some money during the summer by running a lawn mowing service called Blade for…
A: In the context of the given question, we compute the accounts receivable balance reported on the…
Q: You were hired as the accountant of XYZ Trading, a sole proprietorship business owned by Mr.…
A: Sole proprietorship is a form of business in which a single person owns and runs the business and is…
Q: Ryan bought $ 15,000 from a bank to buy a car at 10% simple Interest. If he paid $ 9,000 as…
A: Given: Total amount P borrowed by “R” was $ 15,000, the amount repaid by “R” at the rate of 10% was…
Q: Do the task with the excel or manually if possible,thx If a family who owns a food stall is planning…
A: N = 36 months (3 years) Future Value Required = 13920.89 Income every month = 1392.09 Interest Rate…
Q: Ian bought some goods in May for $600 and sold them in the following August for $950.For the…
A: The goods which are bought during a year and if they are unsold by the end of the year then they…
Q: Below is a chart of the monthly expenses for a person who spends $1,000 a month. Category…
A: The monthly income is divided here under various heads of expenditure.
Q: If you use your car for both business and pleasure, the Canada Revenue Agency will usually allow you…
A: Portion of cost of operating vehicle = distance travelled on business / total distance travelled in…
Q: Consider the following income statement for the first year of operations for Anna's Sandwich Shop.…
A: Implicit cost = Opportunity cost Which is Annual salary foregone and interest income foregone in…
Q: Show calculations - You work as a sales representative for a company and earn $10,000 in commissions…
A: Sales commission refers to a fee paid to an individual or an employee as pre decided with the…
Q: Construct a personal income statement for the Humperdinck family usingthe following information:…
A: Income statement is one of the financial statement prepared periodically by the company depicting…
Q: Your client wants to transfer $500 from their chequing account into a savings account to cover tax…
A: To assist you in performing business accounting duties, online accounting makes use of internet…
Q: Marina has a small store. Last month, she purchased merchandise costing ₱75, 000 for which she…
A: Cost of sales means actual cost of goods that is being sold to the customers. It only includes cost…
How is income defined by the IRC? For example, suppose you decided to hold a garage sale one fine summer weekend. The proceeds of such came out to $40. Do you report this? Why or why not?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Ester has a small store. For the current month, she purchased merchandise costing 75000 for which she paid for 7500. She sold 60% of the merchandise for 68000, after spending for various expenses totaling 13000. She also paid 2000 for the interest on a money she borrowed for her store. a. How musch was her cost of sales?b. How much gross profit did she make?c. How much operating profit did she make?Home ownership has other expenses, including taxes, homeowner's insurance and utilities. The annual property tax can be estimated as 1% of the amount borrowed and the annual homeowner's insurance can be estimated as 2% of the amount borrowed. For a moratage of 145,000 find the following a). What is the monthly ampount of property tax?. b). what is the monthly amount of homeowner's insurance?Marina has a small store. Last month, she purchased merchandise costing ₱75, 000 for which she gained 10% of the cost price. She also paid ₱2,000 for interest onmoney she borrowed for her store. a. How much was her cost of sales? b. How much profit did she make?
- Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $111,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $21,143. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $16,650 of additional cash. • You also need to purchase $8,880 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $5,550. Based on your evaluation you have…Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $123,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $23,429. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $18,450 of additional cash. • You also need to purchase $9,840 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages…During the year, Sandy went from Detroit, MI to Chicago on business. She flew to Chicago on Sunday, worked on Monday and Tuesday, did some sightseeing on Wednesday and Thursday, and flew home on Friday. Her expenses are as follows: Air fare $400 Total Meal Expenses $600 ($100 per day) Assuming no reimbursement, calculate Sandy’s total allowable deduction for her travel expenses.
- For each of the following scenarios, determine if the event is included or excluded from gross income. In addition, you must also explain the reason for your decision. A father gives his son $10,000 so that he can purchase a car. A family member receives $3,000 from a friend after your house was destroyed by fire. A client gives her attorney an extra $500 because he did an excellent job preparing her will. An employer gave an employee an iPad because he has not been absent from work for three weeks. A spouse died three weeks ago, and her employer gave the spouse’s children $2,000. An uncle died and left his neighbor $40,000 in cash and a car worth $22,000.Melissa recently paid $400 for round-trip airfare to San Francisco to attend a business conference for three days. Melissa also paid the following expenses: $250 fee to register for the conference, $300 per night for three nights' lodging, $200 for meals in restaurants, and $150 for cab fare. a) What amount of these costs can Melissa deduct as business expenses? b) Suppose that while Melissa was on the coast, she also spent two days sightseeing the national parks in the area. To do the sightseeing, she paid $1,000 for transportation, $800 for lodging, and $450 for meals during this part of her trip, which she considers personal in nature. What amount of these costs can Melissa deduct as business expenses? c) Suppose that Melissa made the trip to San Francisco primarily to visit the national parks and only attended the business conference as an incidental benefit of being present on the coast at that time. What amount of the airfare can Melissa deduct as a business expense? d) Suppose…See the attached image for question: The manager of the ice cream shop noticed that 90% of all club members brought along a family member who spent an average of $18 in the shop. The tax on their bill was 5.5%. A, What was the total amount spent by the family members in one year?B, What would each family member have to spend, on average, to generate $5,000 in income before sales tax?C, What would each family member's average bill be with sales tax?
- Sebastian sells cars for a living. Each month, he earns $1,400.00$1,400.00 of base pay, plus 11.3%11.3% of commission from his sales. One month, Sebastian made $44,400.00$44,400.00 in sales. How much income did he earn in total in that month?Steps forAshley Warren earned $ 68, 500 last year while paying $ 22,000 in housing expenses, $ 4, 400 on utilities, $4,000 on food, $30,000 in miscellaneous expenses, and $14, 663 in taxes. What cash surplus or deficit did Ashley earn last year?Suppose you have a business where you house-sit for people while they are away on vacation. Some of your customers pay you immediately after you finish a job. Some customers ask you to send them a bill. It is now 30th June and you have collected $900 from cash-paying customers. Your remaining customers owe you $1,300. How much service revenue would you have under accrual accounting?
