2. June uses her personal car for work as an employee. For the year, June drove 5,000 business miles and 30,000 total miles. Her car-related expenses include $4,000 for gas; $600 for insurance; $200 for registration fees; $3,000 depreciation, and $100 for business-related parking and tolls. June's employer does not reimburse her for the use of her car. Using the actual method, not mileage method, What is June's car expense deduction for the year?
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- Joy incurs the following expenses in her business. When can she deduct the expenses if she uses the accrual method of accounting? the cash method? a. Joy rents an office building for 750 a month. Because of a cash flow problem, she is unable to pay the rent for November and December 2019. On January 5, 2019, Joy pays the 2,250 rent due for November, December, and January. b. Joy borrows 60,000 on a 1-year note on October 1, 2019. To get the loan, she has to prepay 6,200 in interest. c. Joy owes employees accrued wages totaling 20,000 as of December 31, 2019. The accrued wages are paid in the regular payroll on January 5, 2020. d. Joy purchases 2,400 worth of supplies from a local vendor. The supplies are delivered on January 29, 2019. They are fully used up on December 30, 2019. Because of unusual circumstances, a bill for the supplies arrives from the vendor on January 10, 2020, and is promptly paid. e. While at a trade convention, Joy purchases some pens and paperweights to send out as holiday gifts to her clients. She charges the 700 cost to her credit card in December 2019. She pays the credit card bill in January 2020.June uses her personal car for work as an employee. For the year, June drove 5,000 business miles and 30,000 total miles. Her car-related expenses include $4,000 for gas; $600 for insurance; $200 for registration fees; $3,000 depreciation, and $100 for business-related parking and tolls. June's employer does not reimburse her for the use of her car. Using the actual method, not mileage method, What is June's car expense deduction for the year?2. Donald owns a car repair business. Hoodlums broke into his shop at night and stole his personal vehicle, which was there being repaired. His vehicle’s FMV before being stolen was 25,000 and FMV after was zero. The cost to replace his vehicle was 19,000, which is the amount he received in insurance proceeds. Donald’s AGI is $90,000. What deduction can Donald take on his 1040 due to the break-in? 0 6000 19000 25000
- Jonathan placed his new car in service on January 1 of the current year. He drove it 15,000 miles in the current year, 60 percent for business.He incurred expenses, including straight line deprication, interest on the car loan, registration fees and repairs after a minor fender bender, of $10,500. What should his business deduction for automobile expenses be?Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet of the total 2,000 square feet of her home. Randi's mortgage interest and property taxes in total are $1,600. Other deductions properly allocated to the home office total $300. In addition, Randi purchases and uses business supplies costing $200 during the year. Assume Randi earns income of $3,400 for the year before deducting any home office or supplies deduction. Assuming Randi uses the simplified (safe harbor) method, calculate the largest deduction Randi can take for her home office (ignore self-employment taxes). Overall home office deduction limitation: $ Home office deduction under simplified method: $Samantha, who is single and has MAGI of $42,300, was recently employed by an accounting firm. During the year, she spends $2,550 for a CPA exam review course and begins working on a law degree in night school. Her law school expenses were $5,895 for tuition and $555 for books (which are not a requirement for enrollment in the course). Assuming no reimbursement, how much of these expenses can Samantha deduct?$fill in the blank 1
- Peter Marwick, an accountant and accrual basis taxpayer, performed accounting services in Year One for Ellie Vader. Peter gave Ellie a bill for $30,000 in Year One. Ellie paid Peter $5,000 in Year One, but Ellie disputes that she owes the other $25,000 because she thinks his work is shoddy. Ellie agreed to put $25,000 in escrow until she and Peter could resolve their legal dispute over Peter's fees. In Year Three after litigation, the dispute is resolved in Peter's favor and he gets the money out of escrow. How much income does Peter have and when? Question 9 options: Peter has $30,000 income in Year 1 because he is on the accrual method. Peter has no income in Year 1 because there is a contested liability. Ellie has $25,000 in cancellation of indebtedness income in Year 1. Peter has $5,000 income in Year 1 and $25,000 in Year 3 under the Claim of Right Doctrine.Michelle operates several food trucks. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction in each of the following situations. Note: Leave no answers blank. Enter zero if applicable. a. Michelle moves her food truck between various locations on a daily rotation. Last week, Michelle was stopped for speeding. She paid a fine of $160 for speeding, including $115 for legal advice in connection with the ticket. b. Michelle paid $785 to reserve a parking place for her food truck for the fall football season outside the local football stadium. Michelle also paid $130 for tickets to a game for her children. c. Michelle provided a candidate with free advertising painted on her truck during the candidate's campaign for city council. Michelle paid $640 to have the ad prepared and an additional $340 to have the ad removed from the truck after the candidate lost the election. d. Michelle realized a $1,235 loss when she sold one of her food trucks to her…Andrew, a self-employed professional, used his personal vehicle for business trips this year. He paid $2,700 for gasoline. His car's depreciation for full business use would be $6, 200. Andrew drove a total of 18, 500 miles during the year, with 3,700 miles documented for business purposes. What business expense amount can Andrew deduct (if any) for these trips, considering that the IRS allows a standard mileage deduction of $0.56 per mile for business use? ***This question already posted and received correct answer. Kindly Don't answer this question again. If you answer i will give 10 dislikes. ****
- Ryan is self-employed. This year Ryan used his personal auto for several long business trips. He paid $1,850 for gasoline on these trips. Ryan estimates that he drove approximately 2,220 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,400 miles. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 18,500 miles (a combination of business and personal travel). What business expense amount can Ryan deduct (if any) for these trips? (Do not found intermediate calculations. Round your final answers to the nearest whole dollar amount.) Maximum deductible amountSydney qualifies for the home office deduction. Her office is 240 square feet and her entire home is 3,000 square feet. She earned a net profit of $2,500 from her business before deducting any home office expenses. During the year, she paid $9,600 of mortgage interest, $1,200 of property taxes, $800 for homeowner's insurance, and $2,400 for utilities. The home was purchased 5 years ago for $180,000 (excluding the cost of the land) and has been used as a home office every year since purchase. Sydney chooses the actual expense method for computing her home office deduction. What is the amount of her home office deduction for the year? (MACRSNepreciation % is 2.564%) O $1,644 O $5.735 O $1.489 O $2,500 O $1,120Bradford's automobile insurance policy has a $1,400 deductible, with a $3,800 out-of-pocket limit and a 90/10 copay. This year, he was involved in a car accident, and was billed $10,800 in expenses. How much of this expense will Bradford be expected to pay out of his own pocket?
