Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2019: Home acquisition debt interest $ 15,000
Credit card interest 5,000
Home equity loan interest (used for home improvement) 6,500
Investment interest expense 10,000
Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.
Answers
Answer:
The Investment Interest (limited to Investment income) = $2,000
Allowance deduction for Interest
Investment interest $2,000
Home acquisition debt interest $15,000
Home equity loan interest $6,500
$23,500 - Before phase out limits
Final answer:
In 2019, Tyrone and Akira can deduct $21,500 in home and home equity loan interest, and $2,000 of their investment interest, which adds up to a total deductible interest amount of $23,500.
Explanation:
In 2019, Tyrone and Akira can deduct the Home acquisition debt interest, Home equity loan interest (given it was for home improvements), and Investment interest expense to an extent.
Their Home acquisition debt interest and Home equity loan interest are fully deductible, giving them a total of $21,500 ($15,000 + $6,500) in deductible interest. The credit card interest is non-deductible.
As for the Investment interest expense, it can only be deducted up to the level of their net investment income. Therefore, of their $10,000 investment interest expense, only the $2,000 that corresponds to their net investment income is deductible in 2019. Any leftover deductible interest may be carried over to the next year.
So in total, they can deduct $23,500 ($21,500 + $2,000) in interest in 2019.
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Related Questions
In 2017, Oriole Corporation reported net income of $1,004,700. It declared and paid preferred stock dividends of $278,600. During 2017, Oriole had a weighted average of 200,700 common shares outstanding. Compute Oriole’s 2017 earnings per share.
The McKnight Company expects sales in 2015 of 208 comma 000 units of serving trays. McKnight's beginning inventory for 2015 is 18 comma 000 trays, and its target ending inventory is 27 comma 000 trays. Compute the number of trays budgeted for production in 2015. Select the labels and enter the amounts to calculate the units of finished goods (trays) to be produced. Budgeted unit sales 208,000 Add target ending finished goods inventory 27,000 Total required units Deduct beginning finished goods inventory –18,000 Units of finished goods to be produced
Segment management is best suited for: _____________ a. small-to-medium businesses b. large businesses c. businesses who already identify customers individually and differentiate them by value d. businesses who do not yet identify or differentiate their customers individually e. a, b, and c f. a, b, and d
Carlos, the HR Director of a large paper manufacturing company, is studying the company's turnover costs. He has accounted for most of the easily calculable costs, but he is concerned about the hidden costs of turnover. Given this information, which of the following is most likely a cause of concern for Carlos?a. Missed project deadlines b. Employee referral fees c. Preemployment medical expenses d. Accrued vacation expenditures
b. $600,000
c. $610,000
d. $625,000
Answers
Answer:
d. $625,000
Explanation:
cost of goods available for sale = cost of goods manufactured during the current period + finished goods inventory at the beginning of the period
- cost of goods manufactured during the current period = $600,000
- finished goods inventory at the beginning of the period = $25,000
cost of goods available for sale = $600,000 + $25,000 = $625,000
cost of goods sold = cost of goods available for sale - ending inventory = $625,000 - $40,000 = $585,000
Final answer:
The Cost of Goods Available for Sale is calculated by adding the Beginning Inventory and the Manufacturing Costs together, resulting in a total of $625,000.
Explanation:
To compute the Cost of Goods Available for Sale, you would add your Beginning Inventory (the cost of the goods on hand at the start of the period) to the cost of the purchases made during the period - which, in this case, would be the manufacturing costs. Given that there were no changes in the raw materials or work in process inventory and since the manufacturing costs incurred totaled $600,000, we can outline the following:
Beginning Inventory of finished goods = $25,000
Manufacturing costs incurred = $600,000
Thus, to calculate the Cost of Goods Available for Sale:
Cost of Goods Available for Sale = Beginning Inventory + Manufacturing Costs=> $25,000 + $600,000 = $625,000
So, the Cost of Goods Available for Sale is $625,000.
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a. Identify, analyze, plan, track, and control
b. Analyze, track, identify, plan, and control
c. Identify assets, threats, vulnerabilities, and exposure factor
d. Cost benefit analysis, control, and review
Answers
Answer:
A
Explanation:
Identify, analyze, plan, track, and control
b. No, the NPV calculation will take into account not only the project's cash inflows but also the timing of cash inflows and outflows. Consequently, Project B could have a larger NPV than Project A, even though Project A has larger cash inflows.
c. No, the NPV calculation is based on percentage returns. So, the size of the project's cash flows does not affect a project's NPV.
Answers
Answer:
b. No, the NPV calculation will take into account not only the project's cash inflows but also the timing of cash inflows and outflows. Consequently, Project B could have a larger NPV than Project A, even though Project A has larger cash inflows.
Explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
An example:
Suppose there are two projects with a cash outlay of $500.
The cash flow for project A :
Cash flow from year 1 to 3 =$0
Cash flow from year 4 to 7 =$ 500
WACC = 10%
Using a financial calculator, the NPV =$690.78
The cash flow for project B
Cash flow for year one and two =$300
Cash flow for year three = $100
Cash flow for year four and five =$500
WACC = 10%
using a financial calculator, the NPV = $747.76
From this example, even though the cash flow from project A is higher than the cash flow from project B, project B's NPV is higher.
I hope my answer helps you.
Answers
Answer:
The correct answer is letter "B": top management's attitude toward decentralized operating structures.
Explanation:
A sales forecast is an estimate of the sales a company projects to process during a given period. This is done so that the firm can have an idea of the resources necessary to produce a determined amount of output from where the company can profit a margin that allows keep the business up and running satisfying stakeholders and employees' expectations.
While creating a sales forecast it is important to consider events that could affect the regular operations of the business such as government regulatory policy changes, competition, and the economy of the industry. Top executives' attitudes towards operating structures are irrelevant for such a purpose.
Answer:
top management's attitude toward decentralized operating structures.
Explanation:
Answers
Elasticity of demand measures the responsiveness of quantity demanded to a change in the price of the good.
a. Perfectly elastic - The good is perfectly elastic when the consumer is ready to buy any quantity at a fixed price.
b. Perfectly inelastic- The good is perfectly inelastic when the change in the price of the good has not effect on its demand, that is when quantity demanded is same at whatever price.
So, because here Gus is ready to buy any units of cupcakes at a fixed price of $10, the demand for cupcakes should be perfectly elastic.
Answers
The tax that needs to be reduced is $ 4.66 billion
Further Explanation
The amount (Deflationary / recessionary) gap =
Keynesian Spending Multiplier from government spending
k =
Tax Multiplier from tax
t =
Option 1: Increased government spending (Loosening / Expansionary Fiscal Policy) by
GovSpending (Gs) =
Option 2: Tax is reduced by (-)
Tax = =
In economics, deflation is a period in which prices generally fall and the value of money increases. Deflation is the opposite of inflation. If inflation occurs due to a large amount of money circulating in the community, deflation occurs due to a lack of money in circulation. One way to overcome deflation is to reduce interest rates.
In the macroeconomy, a recession is a condition when the gross domestic product (GDP) decreases or when real economic growth is negative for two quarters or more in one year. Recession can result in a simultaneous decline in all economic activities such as employment, investment, and corporate profits. Recession is often associated with falling prices (deflation), or, conversely, sharply rising prices (inflation) in a process known as stagflation. The economic recession that lasts long is called economic depression. The drastic decline in the level of the economy (usually due to severe depression, or due to hyperinflation) is called economic bankruptcy (economic collapse). Columnist Sidney J. Harris distinguishes the above terms in this way: "A recession is when a neighbor loses a job; depression is when you lose a job."
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Deflationary brainly.com/question/13135934
To Reduce Tax brainly.com/question/13135934
Details
Class: College
Subject: Business
Keywords: Deflationary, tax, recessionary
Final answer:
To close the remainder of the recessionary gap, taxes need to be reduced by approximately $11.67 billion.
Explanation:
To close the remainder of the recessionary gap of $10 billion, the government has approved a spending increase of $3 billion. The question asks how much taxes need to be reduced to make up the difference. We can use the concept of the Marginal Propensity to Consume (MPC) to find the answer.
The MPC represents the proportion of additional income that individuals spend. In this case, the MPC is given as 0.6. Therefore, for every additional dollar of income, individuals will spend $0.6.
To determine how much taxes need to be reduced, we can use the formula:
Tax Reduction = (Remainder of Recessionary Gap)/MPC
Substituting the values, Tax Reduction = $7 billion/0.6 = $11.67 billion. Therefore, taxes need to be reduced by approximately $11.67 billion to close the remainder of the recessionary gap.
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