{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

WFT08_CompVol_SM_Ch6 - ACCOUNT 451 651 P 6-34 Gross income...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCOUNT 451 / 651 03/19/07 P 6-34 Gross income: Salary income 79,000 Dividend income 4,000 3,000 86,000 Deductions for AGI: Alimony paid 12,000 Traditional IRA contribution 4,000 Loss on sale of stock 900 16,900 Adjusted gross income 69,100 Itemized deductions: Contributions to First Church 2,900 Real estate taxes on personal residence 1,900 Mortgage interest on personal residence 6,000 State income taxes 3,500 Total itemized deductions 14,300 Taxable Income before PE and DE 54,800 P 6-38 a. Cash method: 500,000 current year 45,000 following year b. Accrual method: 545,000 current year all events test and economic performance test both met Page 1 of 5
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ACCOUNT 451 / 651 03/19/07 P 6-43 Tax Court Vac Home % IRS Vac Home Percentage Days of Personal Use 60 Days of Rental Use 60 60 ÷ 365 60 ÷ 120 Tax Court Method IRS Method Total to Vac. Home to Sch. A to Vac. Home to Sch. A Mort. Int. Paid on V. Home 4,758 782 28,945 2,379 2,379 RE Taxes Paid on V. Home 1,098 180 918 549 549 5,856 963 29,862 2,928 2,928 P 6-48 Revenue 18,000 Property taxes 3,000 subtotal 15,000 Materials and supplies 4,500 Utilities 2,000 Advertising 5,000 Insurance 750 12,250 Income before depreciation 2,750 Depreciation (limited) 2,750 * Net income from hobby 0 * actual depreciation: 4,000 AGI before hobby 42,000 Income from hobby 18,000 AGI 60,000 hobby deductions otherwise deductible 3,000 deductible as bus. exp. (not deprec.) 12,250 depreciation 2,750 total 15,000
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern