Question
In: Accounting
Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next...
Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (year 1 and year 2), Trevor expects to report AGI of $80,000, contribute $8,000 to charity, and pay $2,800 in state income taxes.
A. Assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of year 1. Estimate Trevor’s taxable income for each of the next two years using the 2018 amounts for the standard deduction.
B. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,000 and $10,000, respectively, each year. Assume that Trevor makes the charitable contribution for year 2 and pays the real estate taxes for year 2 in December of year 1. Estimate Trevor’s taxable income for year 1 and year 2 using the 2018 amounts for the standard deduction
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next...
Trevor is a single
individual who is a cash-method, calendar-year taxpayer. For each
of the next two years (year 1 and year 2), Trevor expects to report
AGI of $104,000, contribute $8,450 to charity, and pay $3,400 in
state income taxes.
Required:
Estimate Trevor’s taxable income for year 1 and year 2 using
the 2019 amounts for the standard deduction for both years.
Now assume that Trevor combines his anticipated charitable
contributions for the next two years and makes the...
Tim is a single, cash-method taxpayer with an AGI of $50,000. InApril of this year,...
Tim is a single, cash-method taxpayer with an AGI of $50,000. In
April of this year, Tim paid $900 with his state income tax return
for the previous year. During the year, Tim had $4,600 of state
income tax and $16,500 of federal income tax withheld from his
salary. In addition, Tim made estimated payments of $1,100 and
$1,700 of state and federal income taxes, respectively. Finally,
Tim expects to receive a refund of $420 for state income taxes when...
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late...
Reese, a calendar-year
taxpayer, uses the cash method of accounting for her sole
proprietorship. In late December, she received a $15,000 bill from
her accountant for consulting services related to her small
business. Reese can pay the $15,000 bill anytime before January 30
of next year without penalty. Assume Reese’s marginal tax rate is
32 percent this year and will be 37 percent next year, and that she
can earn an after-tax rate of return of 9 percent on her...
1. Manny, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In...
1. Manny, a calendar-year taxpayer, uses the cash method of
accounting for his sole proprietorship. In late December he
performed $21,000 of legal services for a client. Manny typically
requires his clients to pay his bills immediately upon receipt.
Assume Manny’s marginal tax rate is 32 percent this year and next
year, and that he can earn an after-tax rate of return of 6 percent
on his investments. What is the net benefit of collecting the bill
in December?
2.Jonah...
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late...
Hank, a calendar-year taxpayer, uses the cash method of
accounting for his sole proprietorship. In late December, he
performed $21,000 of legal services for a client. Hank typically
requires his clients to pay his bills immediately upon receipt.
Assume his marginal tax rate is 32 percent this year and will be 37
percent next year, and that he can earn an after-tax rate of return
of 4 percent on his investments. a. What is the after-tax income if
Hank sends...
Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late...
Isabel, a calendar-year taxpayer, uses the cash method of
accounting for her sole proprietorship. In late December she
received a $75,000 bill from her accountant for consulting services
related to her small business. Isabel can pay the $75,000 bill
anytime before January 30 of next year without penalty. Assume her
marginal tax rate is 37 percent this year and next year, and that
she can earn an after-tax rate of return of 10 percent on her
investments.
a. What is...
Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer...
Ralph owns a building that he is trying to lease. Ralph is a
calendar-year, cash-method taxpayer and is trying to evaluate the
tax consequences of three different lease arrangements. Under lease
1, the building rents for $700 per month, payable on the first of
the next month, and the tenant must make a $700 security deposit
that is refunded at the end of the lease. Under lease 2, the
building rents for $7,700 per year, payable at the time the...
José, a cash method taxpayer, is a partner in J&T Accounting Services, a calendar year partnership....
José, a cash method taxpayer, is a partner in J&T
Accounting Services, a calendar year partnership. Under the
partnership agreement, José is to receive 20% of the partnership’s
profits or losses. Each partner is allowed to withdraw $10,000 each
month for his or her living expenses. José withdrew $120,000
during the year as his monthly draw in 2019. However, in December,
the partnership was short on cash and José was required to invest
an additional $10,000 in the partnership. In...
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late...
Reese, a calendar-year taxpayer, uses the cash method of
accounting for her sole proprietorship. In late December, she
received a $35,000 bill from her accountant for consulting services
related to her small business. Reese can pay the $35,000 bill
anytime before January 30 of next year without penalty. Assume
Reese’s marginal tax rate is 30 percent this year and will be 40
percent next year, and that she can earn an after-tax rate of
return of 10 percent on her...
Ralph owns a building that he is trying to lease. Ralph is a calendar-year, cash-method taxpayer...
Ralph owns a building that he is trying to lease. Ralph is a
calendar-year, cash-method taxpayer and is trying to evaluate the
tax consequences of three different lease arrangements. Under lease
1, the building rents for $680 per month, payable on the first of
the next month, and the tenant must make a $680 security deposit
that is refunded at the end of the lease. Under lease 2, the
building rents for $7,480 per year, payable at the time the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Large lots are desirable in supply chain coordination despite increasing holding costs.
- ***Convert the C++ to Python*** #include <iostream> using std::cout; using std::cin; using std::endl; int charClass; char...
- Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a...
- The following costs were incurred for the single product produced during the first year of operations...
- Non-constant growth model: Do=$2.00 required return on equity= 5% g= 9% n=1,2 g=7% n=3,4 g=3% n=5...
- . Find all x ∈ Z143 such that x2Ξ 7 (mod 143). Please explain all steps...
- #Python: A palindrome is a sequence of characters that reads the same backwards as forwards. For...
ADVERTISEMENT