• Q : Current year attributable to expenditures....
    Accounting Basics :

    Toby, owner of a cupcake shop in New York, is considering opening a similar business (i.e., a cupcake shop) in Phoenix. After spending $4,200 investigating such possibilities in Phoenix, Toby decide

  • Q : Recognized loss and basis in the newly purchased shares....
    Accounting Basics :

    On January 4 of the following year, Ashley purchases 300 shares of Yale Corporation stock for $800. Ashley's recognized loss and her basis in the newly purchased 300 shares of Yale Corporation stock

  • Q : Recognize a gain on the subsequent sale....
    Accounting Basics :

    Donald sells stock with an adjusted basis of $38,000 to his son, Kiefer, for its fair market value of $30,000. Kiefer sells the stock three years later for $32,000. Kiefer will recognize a gain on t

  • Q : Limitations based on agi....
    Accounting Basics :

    A professional appraiser tells Alan that the whirlpool has increased the value of his home by $1,000. Alan's deductible medical expenses (before considering limitations based on AGI) will be

  • Q : Deductible medical expenses....
    Accounting Basics :

    Caleb's AGI for the year is $50,000. Caleb also receives a reimbursement for medical expenses of $1,000. Caleb's deductible medical expenses that will be added to the other itemized deduction will b

  • Q : Reimbursement for the expenditures....
    Accounting Basics :

    Mr. and Mrs. Gere received no reimbursement for the above expenditures. What is the amount of their deductible itemized medical expenses?

  • Q : Statement claiming an itemized deduction....
    Accounting Basics :

    They had purchased their home on May 1 last year. What amount of property tax on this statement may they claim as an itemized deduction this year?

  • Q : Interest expense on loan....
    Accounting Basics :

    Later in the month, the business supplies bill arrives and Riva writes a check for $10,000 from the personal account. With respect to the interest expense on the $10,000 loan,

  • Q : Current year deduction related to home....
    Accounting Basics :

    Charging points is a customary business practice in the area. In addition, they pay $4,400 of interest during the year. What is their current year deduction related to their home?

  • Q : Amount of charitable contribution deduction problem....
    Accounting Basics :

    Erin's adjusted gross income for this year was $50,000. What is the amount of her charitable contribution deduction for the year?

  • Q : Amount of charitable contribution deduction....
    Accounting Basics :

    Carl purchased a machine for use in his trade or business two years ago for $30,000. During the current year, Carl donates the machine to the local community college. At the time of the contribution

  • Q : Investment property after receiving an insurance settlement....
    Accounting Basics :

    Juan has a casualty loss of $32,500 on investment property after receiving an insurance settlement. This is Juan's only casualty transaction this year. Juan's loss is:

  • Q : Single individual and sole shareholder....
    Accounting Basics :

    Amy, a single individual and sole shareholder of Brown Corporation, sold all of the Brown stock for $30,000. The stock basis was $150,000. Amy had owned the stock for 3 years. Brown Corporation meet

  • Q : Net impact on agi due to passive activity....
    Accounting Basics :

    Jeff owned one passive activity. Jeff sold the activity and realized a $2,000 gain on the sale. Prior to the sale, he realized a current year loss from the activity of $6,000. In addition, he has su

  • Q : Considering a passive activity....
    Accounting Basics :

    Charlie owns activity B which was considered a passive activity and generated a $17,000 suspended loss. Charlie increases his involvement with activity B so that this year activity B is not consider

  • Q : Nicole casualty loss amount....
    Accounting Basics :

    An appraisal placed the value of the home at $140,000 after the hurricane. Because of its prohibitive cost, Nicole had no hurricane insurance. Before any reductions or limitations, Nicole's casualty

  • Q : Casualty gains and losses on personal-use property....
    Accounting Basics :

    In the current year, Marcus reports the following casualty gains and losses on personal-use property. Assets X and Y are destroyed in the first casualty while Z is destroyed in a second casualty.

  • Q : Insurance company reimbursement....
    Accounting Basics :

    Her casualty loss is $3,000; she has other itemized deductions of $1,200. In 2013, Constance's insurance company reimburses her $2,800. Constance's 2013 AGI is $28,000. As a result, Constance must:

  • Q : Personal bankruptcy and loan....
    Accounting Basics :

    In 2012 Paula declared personal bankruptcy and Grace was unable to collect any of her loan. Grace had no other gains or losses last year or this year.

  • Q : Allowable deductions from agi....
    Accounting Basics :

    Allison, who is single, incurred $4,000 for unreimbursed employee expenses, $10,000 for mortgage interest and real estate taxes on her home, and $500 for investment counseling fees. Allison's AGI is

  • Q : Vincent deductible travel expenses....
    Accounting Basics :

    Ron has AGI for the year of $100,000. Vincent's deductible travel expenses, after application of any relevant limitations, are:

  • Q : Business trip for employer....
    Accounting Basics :

    Gwen traveled to New York City on a business trip for her employer. Gwen spent 4 days in business meetings and conferences and then spent 2 days sightseeing in the area.

  • Q : Standard mileage rate method....
    Accounting Basics :

    Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations,

  • Q : Application of all relevant limitations....
    Accounting Basics :

    Jordan submitted appropriate reports to his employer, and the employer paid a reimbursement of $ .50 per mile. Jordan has used the actual cost method in the past. Jordan's AGI is $50,000. What is Jo

  • Q : Miscellaneous itemized deductions....
    Accounting Basics :

    What amount of the gifts is deductible before application of the 2% of AGI floor for miscellaneous itemized deductions?

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