Parking $500 Fuel 900 Tolls 200 Meal costs $ 1,500 Entertainment of customers 3,
ID: 2363007 • Letter: P
Question
Parking
$500
Fuel
900
Tolls
200
Meal costs
$ 1,500
Entertainment of customers
3,500
Brett's supervisor
$30
Brett's secretary
40
4 customers ($27 each)
108
Gift wrapping customer gifts
10
Transportation of household goods and personal effects
$2,600
Cost of transporting Bill's family
2,000
House-hunting trip
1,700
Payments to lessor to cancel a lease
500
Furnished apartment
$ 4,800
Meals
3,000
Old residence to new job
70 miles
Old residence to old job
8 miles
Parking
$500
Fuel
900
Tolls
200
1.Jan, who is an employee, drove her automobile a total of 40,000 business miles in 2011. She also has receipts for business-related use as follows:Parking
$500
Fuel
900
Tolls
200
Jan receives no reimbursement from her employer. Jan has an AGI for the year of $50,000 and no other itemized deductions. If Jan uses the standard mileage method, she can deduct from AGI (after limitations) (Points : 2) $19,600.
$20,100.
$21,000.
$22,000.
Explanation / Answer
plz rate me 1st 1) (40,000 miles × .555) + $500 parking + $200 tolls -$900 fuel = $22,000 is the standard milage..!! 2)Meals ($150 × 2) $ 300 Minus: 50% of meals ( 150) $150 Hotels ($300 × 2) 600 Rental car ($150 × 2) 300 Total expenses $1,050 Minus: 2% of $40,000 (800) Deductible expenses $ 250 3)$500 from AGI Explanation: A) Since there was an accountable plan, no amount is included in income. Excess costs are deducted from AGI as a miscellaneous itemized deduction. The excess expenses are first subject to the 50% limitation and then subject to the 2% nondeductible floor. Eligible expenses ($5,000 - $2,000) × 0.50 $1,500 Minus: 2% of AGI 1,000 Deduction from AGI $ 500 4)A) $135 Explanation: A) $25 (secretary) + $100 (4 × $25 for customers) + $10 = $135. The gift to the supervisor is not deductible. Deductible gifts are limited to $25 per donee plus wrapping. 5)B) $4,600 Explanation: B) Direct expenses: Transportation of household goods $2,600 Cost of transporting Bill's family 2,000 Deductible moving expenses $4,600 6)