311-Chapter 6 In Class Exercises

311-Chapter 6 In Class Exercises - Adjusted Gross Income:...

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ACC 311 Education Expense Handout Solution WITHOUT Higher Education Deduction Not Deductible : Expenses related to the Law School courses Becker CPA Review Course Adjusted Gross Income: Other Income $5,000 Reimbursement for Tax Planning Seminar 550 Reimbursement for CPA Review Course 850 Deduction for AGI (Reimbursed Seminar Expenses) (550) AGI $5,850 Miscellaneous Itemized Deduction: Graduate Tax Courses $350 Less: 2% x $5,850 (117) $ 233 Solution WITH Higher Education Deduction (Best Option) Not Deductible : Transportation and parking related to the Law School courses Becker CPA Review Course AGI from above $5,850 Higher Education Deduction : Tuition for Law School Courses $1,800 Tuition for Graduate Tax Courses 300 (2,100) AGI $3,750 Miscellaneous Itemized Deduction: Transportation for Graduate Tax Course $ 50 Less: 2% x $3,750 ( 75) $ 0
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ACC 311 Employee Business Expenses Handout
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Unformatted text preview: Adjusted Gross Income: Reimbursement for Denver Business Trip 400 Deduction for AGI (Reimbursed Denver Expenses) (400) Reimbursement for Orlando Marketing Seminar 1,000 Deduction for AGI (Reimbursed Orlando Seminar Expenses): Reimbursed % = $1,000 = 71.4% $1,400 Registration fee (71.4% x $600) $428 Lodging (71.4% x $400) 286 Meals (71.4% x $150) 107 Airfare (71.4% x $250) 179 (1,000) AGI $ Miscellaneous Itemized Deduction before the 2% Floor: Mileage (1,000 x $0.485) $ 485 Denver Trip: Lodging [(5 nights/9 nights) x $900] $500 Meals [(6 nights/10 nights) x $400] x 50% 120 620 Orlando Marketing Seminar: Registration fee (28.6% x $600) $172 Lodging (28.6% x $400) 114 Meals [(28.6% x $150) x 50%] 21 Airfare (28.6% x $250) 71 378 Miscellaneous Itemized Deduction before the 2% floor $ 1,483...
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This homework help was uploaded on 04/06/2008 for the course ACC 311 taught by Professor Mhaha during the Fall '07 term at Central Mich..

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311-Chapter 6 In Class Exercises - Adjusted Gross Income:...

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