Q: In its first year of operations, Bell Corporation paid its attorney
In its first year of operations, Bell Corporation paid its attorney $4,000 and its accountant $2,000 for services related to the organization of the corporation. In its second year of operations, Bell...
See AnswerQ: Randy gave one of his best customers a $150 bottle of
Randy gave one of his best customers a $150 bottle of wine. How much can he deduct for this business gift?
See AnswerQ: Mary, a taxpayer in the 33 percent marginal tax bracket,
Mary, a taxpayer in the 33 percent marginal tax bracket, borrows $500,000 at 10 percent interest to invest in 7 percent tax-exempt municipal bonds. The annual interest expense on the loan is $50,000....
See AnswerQ: On December 15, Simon Corporation (a cash-basis,
On December 15, Simon Corporation (a cash-basis, calendar-year corporation) paid $5,000 for five months of supplies and $9,000 for an insurance policy covering its office building for the next three c...
See AnswerQ: Elisa spends $1,000 on business lunches to entertain her
Elisa spends $1,000 on business lunches to entertain her customers at the local country club. The club charges an annual membership fee of $800. Elisa uses the facility 80 percent of the time for busi...
See AnswerQ: Jim, a self-employed individual, takes an important customer
Jim, a self-employed individual, takes an important customer to the hockey playoffs. Although the face value of a ticket is only $70, he pays a scalper $400 for each ticket. Assuming all other require...
See AnswerQ: Martha lives with her husband in Los Angeles but works in San
Martha lives with her husband in Los Angeles but works in San Diego. During the week she stays in a hotel in San Diego and eats in nearby restaurants. On weekends, she flies home to Los Angeles. Durin...
See AnswerQ: Dan’s employer assigned him to the New York office for 18 months
Dan’s employer assigned him to the New York office for 18 months. During this 18-month assignment, Dan spent $18,000 for apartment rent and $8,500 for meals, because his family remained in St. Louis....
See AnswerQ: John is a teacher at a local high school. During 2017
John is a teacher at a local high school. During 2017, he travels three days per week to a school in the next county to work with gifted children in an after-school program that does not end until 6:3...
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