chapter_6_problems solutions - Chapter 6 Problems...

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24) total miles business related personal pur Al johnson 18,000 10,000 8,000 Expense amount Gas 7,900 Maintenance 900 Repairs and De 900 Car washes 500 Total 10,200 If using the standard milage rate, then none of the items should be included as expenses And only the 10,000 business related miles will be incurred 5100 should be the expense recorded if he uses an actual cost method then the: 0.5555556 5,666.67 should be deducted for expense 25) if using a standard milage rate then none of the items should be incurred as expenses if using an actual cost method then the expenses are: 3,722.22 26) a) T For AGI b) X not deductible c) X not deductible d) T For AGI e) X not deductible 27) a) T For AGI b) x neither c) P From AGI d) PI For AGI e) x neither 28) Loss on sale of stock is deductible for AGI Hobby loss in excess of hobby should not be deducted gambling losses in excess should be deductible from AGI loss on sale of stock on individuals investment portfolio should be deductible from AGI
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This note was uploaded on 11/26/2011 for the course INCOME TAX 4404 taught by Professor Bulie during the Spring '11 term at University of Minnesota Duluth.

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