Michele owns and operates her own business as a sole proprietorship. During the current year, she gave the following gifts to business clients. None of theemployees of the receiving companies were to receive more than one gift.50 desk sets imprinted with her company's namevalued at $4 each to Company A20 bottles of wine valued at $20 each to Company B20 floral arrangements at a cost of $30 each toCompany C$ 20040060050 watches at a cost of $25 each to Company DEngraving the sole proprietorship's name on watchesto Company D1,250100What is the amount of business gifts Michele can deduct for the current year?O A. $2,350O B. $2,750O C. $2,450O D. $2,650

A tax deduction is the entire amount that a person can use to lower their tax obligation. It is a…

Answered: Michele owns and operates her own…

Administration Of Wills/Trusts/ And Estates

5th Edition

ISBN:9781285281308

Author:Brown

Publisher:Brown

Chapter9: Specialized Trusts

Section: Chapter Questions

Problem 2CTD

See similar textbooks

Similar questions

During the current year holiday season, Bob, a barber, gave business gifts to 34 customers. The values of the gifts, which were not of a promotional nature, were as follows:10 at $10 each8 at $25 each8 at $50 each8 at $100 eachFor the current year, what is the amount of Bob's business gift deduction? a.$700 b.$0 c.$850 d.$1,500 e.None of these choices are correct.
Linda is an employee of JRH Corporation. Which of the following would be included in Lindas gross income? a. Premiums paid by JRH Corporation for a group term life insurance policy for 50,000 of coverage for Linda. b. 1,000 of tuition paid by JRH Corporation to State University for Lindas masters degree program. c. A 2,000 trip given to Linda by JRH Corporation for meeting sales goals. d. 1,200 paid by JRH Corporation for an annual parking pass for Linda.
Jeffrey Dean, a Masters Degree candidate at North State Central University, was awarded a 15,000 scholarship from North State Central in the current year. During the current year, he paid the following expenses: In addition, he received 6,000 for teaching two undergraduate accounting courses. What amount must be included in Deans gross income? a. 0 b. 6,000 c. 7,500 d. 21,000
Marco makes the following business gifts during the year: Miss Scarlett (a potential client) $30 Mr. and Mrs. White (both are clients) $40 Professor Plum (a client) $18 Mrs. Plum (the nonclient wife of Professor Plum) $12 Charles Mustard (Marco’s boss) $27 Marco also spent $15 on wrapping paper and a card for the above gift to the Whites.Calculate Marco’s total allowed deduction for gifts
During the current year, Paul, the vice president of a bank, made gifts in the following amounts. To Sarah (Paul's personal assistant) at Christmas $39 To Darryl (a key client)-$3 was for gift wrapping 42 To Darryl's wife (a homemaker) on her birthday 14 To Veronica (Paul's boss) at Christmas 75 In addition, on professional assistants' day, Paul takes Sarah to lunch at a cost of $50. Presuming that Paul has adequate substantiation and is not reimbursed, how much can he deduct? Do not round intermediate computations. If required, round your final answer to the nearest cent.
Ray Ray made the following contributions this year. Charity Property Athens Academy School United Way American Heart Association First Methodist Church Cost $ 8,050 5,850 Antique painting 15,300 Coca-Cola stock 15,250 Cash contributions Property donations Cash Cash Determine the maximum amount of charitable deduction for each of these contributions ignoring the AGI ceiling on charitable contributions and assuming that the American Heart Association plans to sell the antique painting to fund its operations. Ray Ray has owned the painting and Coca-Cola stock since 1990. FMV $8,050 5,850 76,500 22,875 Maximum Amount
Morrison (self-employed) made the following business gifts during the year: To Quinn (a key client) at Christmas $50 To Flores (Quinn's 8 -year-old child) for a birthday 20 To Ramim (Morrison' s secretary) for a birthday ($3 was for gift wrapping) 30 Presuming proper substantiation, Morrison's deduction is: a. $53. b. $73. c. $78. d. $98. e. $103.
Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contributed $6,000, in her name, to the American Red Cross. The contribution of the $6,000 should be recorded on the accounting records of which of the following entities? Crystal Cleaning and the American Red Cross Karen Meyer's personal records and the American Red Cross Karen Meyer's personal records and Crystal Cleaning Karen Meyer's personal records, Crystal Cleaning, and the American Red Cross
Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations during the current year: Painting: The amount of the contribution is Stock: The amount of the contribution is Groceries: The amount of the contribution is Adjusted Basis $6,000 $10,000 Painting held four years as an investment, to a church, which sold it immediately Apple stock held two years as an investment, to United Way, which sold it immediately Canned groceries held one month as inventory, to Catholic Meals for the Poor 15,750 35,000 7,800 13,000 Determine the amount of Aquamarine Corporation's charitable deduction for the current year. (Ignore the taxable income limitation.) Therefore, the total charitable contribution is $ Fair Market Value
Ralph made the following business gifts during the year To Robert (a key client) at Christmas: $50 To Angel (Robert’s 8-year old daughter) on her birthday: $20 To Art (Ralph’s secretary) on his birthday ($3 was for gift wrapping): $30 To Paige (Ralph’s boss) at Christmas: $40 Presuming proper substantiation, Ralph’s deduction is: A. $0 B. $53 C. $73 D. $78
Milly operates a small business and incurs the following expenses: Annual dues Tampa Bay Golf Club $2,000 Meals with clients after golf 500 Meals with clients at the Club's dining room where business was conducted 600 Greens fees (personal and with clients) 700 Meals (personal) 250 Total $4,050 Calculate the portion of the $4,050 that Milly can deduct.
11.Bonnie owns a hardware store. During the year, Bonnie gives business gifts having the indicated costs to the following individuals: Mrs. Johnson (a customer) $37 plus $3 for shipping. Mr. Johnson, (non client husband of Mrs. Johnson) $10 Ms. Doncan (a customer) $22 What is the amount of Bonnie's deduction for business gifts?

SEE MORE QUESTIONS

Recommended textbooks for you

Administration Of Wills/Trusts/ And Estates

Finance

ISBN:

9781285281308

Author:

Brown

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

Administration Of Wills/Trusts/ And Estates

Finance

ISBN:

9781285281308

Author:

Brown

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS