THIS QUESTION REQUIRES AN ESSAY STYLE ANSWERMaddy and Maxie are running a coffee shop.. They agree thatMaddy will receive a wage for operating the shop whilst Maxie willcontribute $50,000 to finance the start up and the balance of theprofits and losses thereafter is to be split 40% to Maddy and 60% toMaxie. The accounts for the year ended 30 June 2020 were asfollows:Sale of Food and drinks received$250,000Cost of consumables$80,000Cost of rent$50,000Wages to Maddy$40,000There are no other relevant transactions.What is the net income of the partnership?What is the distribution from the partnership to Maddy?What is the taxable income of Maddy?Your Answer Should Reference Relevant Legislation

A partnership is a type of business organization where two or more persons come together to achieve…

Answered: THIS QUESTION REQUIRES AN ESSAY STYLE…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 45P

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Andrea is buying a house for $190,000. She plans to make a 18% down payment. Closing costs include $750 for 66 months of homeowners insurance, $1150$ for 66 months of property tax, $100 for the title fee, and $450 in transaction fees. Andrea also agreed to pay two points in exchange for a 0.5% reduction in interest rate. Determine the amount of money Andrea needs to cover closing costs. Round your answer to the nearest cent.
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[The following information applies to the questions displayed below.] 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable. 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 the total costs can Melissa deduct as business expenses? c. Suppose that Melissa made the trip to San…
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