LO.3 On Thursday, Justin flies from Baltimore (where the office for his sole proprietorship is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino. a. For tax purposes, what portion of Justin's trip is regarded as being for business? b. Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain. c. Under either part (a) or (b), how much of Justin's airfare qualifies as a deductible business expense?

LO.3 On Thursday, Justin flies from Baltimore (where the office for his sole proprietorship is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino. a. For tax purposes, what portion of Justin's trip is regarded as being for business? b. Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain. c. Under either part (a) or (b), how much of Justin's airfare qualifies as a deductible business expense?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 28P

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On Thursday, Justin flies from Baltimore (where his sole proprietorship office is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino. a. For tax purposes, what portion of Justins trip is regarded as being for business? b. Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain. c. Under either part (a) or (b), how much of Justins airfare qualifies as a deductible business expense?
LO.3 On Thursday, Justin flies from Baltimore (where the office for his sole proprietorship is located) to Cadiz (Spain). He conducts business on Friday and Tuesday; vacations on Saturday, Sunday, and Monday (a legal holiday in Spain); and returns to Baltimore on Thursday. Justin was scheduled to return home on Wednesday, but all flights were canceled due to bad weather. As a result, he spent Wednesday watching floor shows at a local casino. For tax purposes, what portion of Justin’s trip is regarded as being for business? Suppose Monday was not a legal holiday. Would this change your answer to part (a)? Explain. Under either part (a) or (b), how much of Justin’s airfare qualifies as a deductible business expense?
Give typing answer with explanation and conclusion Prisha worked in accounting for a large, publicly traded manufacturing company. Last year, she disclosed to the Securities and Exchange Commission (SEC) that the company had issued fraudulent financial statements in order to secure a loan. Prisha is fired from her job and sues the firm. Which of the following is true under the Sarbanes–Oxley Act? a) Prisha must be rehired into her old position. b) Prisha must be rehired and given back pay and attorney’s fees. c) Prisha is entitled to attorney’s fees but nothing else. d) Prisha is entitled to share in any settlement monies the firm paid to the SEC.
Week 4 Explain the operation of the contra proferentem rule. Is such a rule defensible in today's business environment? (, maximum explanation are required) Week 5 In September, Amina hired Bryan as a delivery man. Bryan was to commence work on 1 November. On 1 October, Amina wrote to Bryan telling him that, despite their agreement, economic circumstances were such that she no longer required his services. Can Bryan sue Amina? Explain your answers in light of the principles learned on breach of contract.(detail explanation)
Explain the outcome of each of the following transactions. a. On March 20, Andy Small became seventeen years old, but he appeared to be at least twenty-one. On April 1, he moved into a rooming house in Chicago where he orally agreed to pay the landlady $300 a month for room and board, payable at the end of each month. On April 30, he refused to pay his landlady for his room and board for the month of April. b. On April 4, he went to Honest Hal’s Carfeteria and signed a contract to buy a used car on credit with a small down payment. He made no representation as to his age, but Honest Hal represented the car to be in A-1 condition, which it subsequently turned out not to be. On April 25, he returned the car to Honest Hal and demanded a refund of his down payment. c. On April 7, Andy sold and conveyed to Adam Smith a parcel of real estate that he owned. On April 28, he demanded that Adam Smith reconvey the land although the purchase price, which Andy received in cash, had been spent in…
J is a self-employed interior decorator. Her business location is in New Brunswick NJ. In the current year, j traveled to Chicago to attend a business trade show and to meet with clients and prospective clients. The purpose of the trip was business related. Details of the trip are as follows: Transportation to and from Chicago $ 1,200Meals while in Chicago $ 130 per dayLodging while in Chicago $ 225 per nightIf j trip was for 10 days, and she spent 7 days conducting business, and 3 days conducting personal activity with hew old college friends, how much will j claim as a business deduction for this trip? a. $ 2,870b. $ 3,230c. $ 3,325d. $ 4,100e. $ 4,750
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the following expenses: Airfare to and from San Diego $ 478 Hotel charges while on business 340 Meals while on business 260 Car rental while on business (she drove 240 miles) 110 Hotel charges while on vacation 460 Meals while on vacation 290 Car rental while on vacation 180 Total $2,118 Calculate Joan's travel expense deduction for the trip, assuming the trip was made in 2019.$
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the following expenses: Airfare to and from San Diego $ 480 Hotel charges while on business 440 Restaurant meals while on business 260 Car rental while on business (she drove 240 miles) 110 Hotel charges while on vacation 460 Restaurant meals while on vacation 290 Car rental while on vacation 180 Total $2,220 Calculate Joan's travel expense deduction for the trip, assuming the trip was made in 2022.
Hopper works as an independent contractor (self-employed sole proprietor) for local businesses on weekends, and he often provides services in exchange for property. All of the following happened during 2019: Hopper provided security services in exchange for $1,375 of car repair services, $2,500 of groceries, and cash of $5,250. The cash was mailed to Hopper in the form of a check on December 15, 2019. Hopper, however, was out of town for the entire month of December. When he checked his mail on January 1, 2020, the check was there. Hopper also received a gift card in exchange for services he provided that could only be used for $1,000 work of clothing at a local mall shop. During 2019, Hopper only redeemed $250 worth of clothing at a local mall shop. Hopper has a total of $6,300 worth of legitimate business expenses during 2019, none of which were considered Cost of Goods Sold. Determine Hopper’s gross income for 2019 assuming that he uses the cash basis of accounting.
Basil, after finishing his graduation joined his father’s small business of buying and selling cloths. His father agreed to pay him salary every month. Basil job was to handle sales and marketing. In this case, Basil can be rightly called as a. Employee b. Entrepreneur c. Employer d. Businessman
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the following expenses: Airfare to and from San Diego $ 825 Hotel charges while on business 300 Meals while on business 180 Car rental while on business 90 Hotel charges while on vacation 420 Meals while on vacation 198 Car rental while on vacation 180 Total $2,193 Calculate Joan's travel expense deduction for the trip, assuming the trip was made in 2019. Why is $1395 not the correct answer?
E 4 One and Joel are partners in an accounting firm. Joel traveled abroad for medical reasons for a year, leaving One in charge of their business. While Joel was away, One hired Nonsikelelo to be office administrator at a salary of P48,000 per annum. Upon returning, Joel discovered that Nonsikelelo’ssalary had not been paid regularly and she was owed P20,000. Joel told Nonsikelelo that One had no authority to hire her and that her contract was rendered void. He mentioned that he was not liable under the contract. a. Explain whether One had authority to hire Nonsikelelo in Joel’s absence. b. Discuss the term liability and state whether Joel is liable to Nonsikelelo in terms of the outstanding salary.