Sol-Fall2007-Exam2

Sol-Fall2007-Exam2 - ACCTG 321 Fall 2007 Exam II Solution I...

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

View Full Document Right Arrow Icon
ACCTG 321 Fall 2007 Exam II Solution I. A. NOT Due to the fact that the reimbursement was not included in income, the expenditure is not deductible by the nurse. B. NOT This type of personal living expense is not deductible. C. FROM Tax preparation fees are deductible as a miscellaneous itemized deduction. D. FOR Losses from the sale or exchange of property held for investment are deductible for AGI. E. FROM All unreimbursed employee business expenses are miscellaneous itemized deductions. F. FOR Trade or business expenses of a self-employed individual are deductible for AGI. G. FOR Deductions attributable to rents (within the passive activity loss limitation rules) are deductible for AGI. H. FOR Reimbursed deductible expenses (included in the employee’s income) are deductible for AGI. I. NOT Commuting expenses are not deductible. The fact the expenditure is reimbursed and the reimbursement is included in the employee’s income is irrelevant. J. FOR Trade or business expenses of a self-employed individual are deductible for AGI. K. NOT A deduction is not allowed for any fine or similar penalty paid to a government for the violation of any law. L. NOT A deduction is not allowed for any fine or similar penalty paid to a government for the violation of any law. M. Any three of the following is acceptable 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
C. Tax preparation fees are subject to the 2% of AGI threshold for deductibility. D. Loss on the sale of corporate bonds are subject to the net capital loss deduction of a maximum of $ 3,000. E. The meals and entertainment portion is only 50 % deductible. The remainder is subject to the 2 % of AGI threshold. F. The meals and entertainment portion is only 50 % deductible. G. Deductions attributable to rents are subject to the passive activity loss limitations. J. Entertainment expenses would be only 50 % deductible. II A. 1) Salary and Wages $ 120,000 Dividend Income 10,000 Alimony paid ( 25,000) Adjusted Gross Income $ 105,000 2) Adjusted Gross Income $ 105,000 Standard Deduction ( 10,700) Personal Exemptions ( 6,800) Taxable Income $ 87,500 3) 1) Gift received from grandmother Gifts are excluded from income. 2) Child support paid
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/09/2009 for the course ACCTG 321 taught by Professor Will during the Spring '08 term at San Diego State.

Page1 / 7

Sol-Fall2007-Exam2 - ACCTG 321 Fall 2007 Exam II Solution I...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online