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Unformatted text preview: Chapter 9. 1. A. Bret and Christina are both employed and independent contractors for 2009. Schedule C is for reporting profit or loss from a Sole Proprietorship. Form 2106, Employee Business Expenses, can only be used by employees if they have business expenses relating to their job that they werent reimbursed for. B. Form 2106 was omitted because either Christina is no longer employed or she was reimbursed by her employer for business expenses. 8. The extra meals and lodging expenses for the nonbusiness day are deductible if the cost is less than the additional cost of flying without a Saturday stay. For the employee, any reimbursement for such costs is nontaxable. Thus, the Saturday is treated as a business day even though no business activity takes place. 23. Myrna was reimbursed $400 under an accountable plan. As to $1000 balance, she can claim $250 as a deduction for AGI and $750 as a miscellaneous itemized deduction (subject to the 2%-of-AGI floor). 26. For 2010, the contribution ceiling to IRA is the smaller of $5000 or 100% of compensation. In our case, Nick can contribute $5000 to the traditional IRA. His contribution to Roth IRA is limited to $4333 ($5000 - $667). (2000/15000 x 5000 = 667) 32. a. Emma can deduct 15 miles a day mileage from first job to the second. if she works 32....
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This note was uploaded on 07/09/2011 for the course ACCT 307 taught by Professor 1 during the Spring '10 term at Strayer.
- Spring '10