Daniel, age 38, is single and has the following income and expenses in 2018:

Salary income $60,000

Net rent income 6,000

Dividend income 3,500

Payment of alimony in accordance with the separation agreement which was signed in 2018 12,000

Mortgage interest on residence 9,900

Property tax on residence 1,200

Contribution to traditional IRA (assume the amount is fully deductible) 5,000

Contribution to United Church 2,100

Loss on the sale of real estate (held for investment) 2,000

Medical expenses 3,250

State income tax 300

Federal income tax 7,000

1) What is Daniel's gross income?

2) What is Daniel's AGI?

3) What is Daniel's Total itemized deductions (after any limitations)? This is all for 2018.

If you could can you please explain how you got to the correct answer?

Thanks, I appreciate it much!

American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. The lease agreement for the $4.3 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be five years with no residual value. Barton and Barton’s implicit interest rate was 10%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018.

2. Prepare an amortization schedule for the four-year term of the lease.

3. & 4. Prepare the appropriate entries related to the lease on December 31, 2018 and 2020.

Suppose that people consume only three goods, as shown in this table:

Complete the following table by computing the percentage change in price for each of the three goods.

Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is.

True or False: If you were to learn that a bottle of Gatorade increased in size from 2017 to 2018, that information would raise your estimation of the inflation rate.

True

False

True or False: If you were to learn that Gatorade introduced new flavors in 2018, that would imply that the inflation rate you estimated is understated.

True

False

American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. The lease agreement for the $5.1 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be five years with no residual value. Barton and Barton’s implicit interest rate was 11%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018. 2. Prepare an amortization schedule for the four-year term of the lease. 3. & 4. Prepare the appropriate entries related to the lease on December 31, 2018 and 2020.

1. House prices in Southern California reached a record median price of $505,000 in 2007 (nominal dollars). In 2018 the median price was $507,500 (again nominal dollars), surpassing the previous record. Suppose the CPI in 2007 was 217.39 and 256.21 in 2018. Which year had the higher real price in 2018 dollars and by how much?

2. Let the market demand for a product be described by P = 40 - 0.02*Q.  The market supply curve is P = 20 + 0.03*Q.

(a) Calculate the market equilibrium price and output under perfect competition.

(b) Determine consumer’s surplus at the market equilibrium.

(c) Determine producer’s surplus at the market equilibrium.

(d) Determine the arc elasticity of demand for a four dollar ($4.00) increase in the market equilibrium price (i.e., the price increases four dollars from the price you determined in part a).

On June 30, 2009, Einstein Corp. issued 10% bonds with a par value of $1,000,000 due in 20 years. They were issued at 98 and were callable at 102 at any date after June 30, 2017. Because of lower interest rates and a significant change in the company’s credit rating, it was decided to call the entire issue on June 30, 2018, and to issue new bonds. New 6% bonds were sold in the amount of $1,100,000 at 101; they mature in 20 years. Einstein Corp. uses straight-line amortization. Interest payment dates are December 31 and June 30.

(a) Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2018. (b) Prepare the entry required on December 31, 2018, to record the payment of the first 6 months’ interest and the amortization of premium on the bonds.

Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years × final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years’ service. Her retirement is expected to span 18 years. Davenport’s salary is $90,000 at the end of 2018 and the company’s actuary projects her salary to be $240,000 at retirement. The actuary’s discount rate is 7%.

a)  Estimate by the accumulated benefits approach the amount of Davenport’s annual retirement payments earned as of the end of 2018.

b)What is the company's accumulated benefit obligation at the end of 2018 with respect to Davenport?

c)If no estimates are changed in the meantime, what will be the accumulated benefit obligation at the end of 2021 (three years later) when Davenport’s salary is $100,000?

On June 30, 2013, Singleton Computers issued 6% stated rate bonds with a face amount of $200 million. the bonds matured on June 30, 2033 (15 years). The Market rate of interest for similar bond issues was 5% (2.5% semi-annual rate). Interest paid semiannually (3%) on June 30 and December 31, beginning on December 31, 2018.

Required:

1. Determine the price of the the bonds on June 20, 2018.

2.Calculate the interest expense Singleton reports in 2018 for these bonds.

My question is, that I cannot figure out how to calculate the Present Value of Ordinary Annuity of $1.

I understand I need to use n=30 and I=2.5% But I don't understand how to apply them to a formula to get the answer of Present Value of Ordinary Annuity of $1 so that I can continue.

A Landscaping Inc. is preparing its budget for the first months of 2019. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. 10% of all sales are for Cash. Credit customers usually pay 20% of their fee in the month that service is provided, 60% the month after, 18% the second month after receiving service. The remaining 2% is written off in the third month following the service,

Expected revenues are: October 2018, $100,000; November 2018, $120,000; December 2018, $150,000; January 2019, $130,000; February 2019, $180,000; March 2019, $190,000; April 2019, $200,000

Cash paid out for January purchases will be $60,000.

Instructions

1. Prepare the following schedule showing expected collections from clients for January and February of 2019.