{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ECON138A_HW#3 - 3,100 AGI 206,200 New AGI 203,200 b Long...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Trevor Salas 11/9/11 #3255593 Homework #3 CHAPTER 15 18. a. The after-tax cost is 0. She was completely reimbursed so she won’t report the reimbursement as income and she won’t deduct the expense. b. She doesn’t itemize her deductions so there is no tax effect. This gives her after-tax cost of 1,119. c. 2%* 70,150=1,403. Since her AGI exceeds her employment-related expenses(619+500=1,119), she can not deduct any of them. Therefore, her after-tax cost is 1,119 d. 2% * 25,300=506. Since her employment-related expenses(1,119) exceed 2% of AGI, she can deduct 1,119-506=613. So, her after-tax cost= 1,119-.15(613)= 1,027.05 CHAPTER 16 21. a) Short Term Gain 8,900 Long Term Loss 15,000 Net Long Term Cap Loss 6,100 Deductible Loss 3,000 Long Term Loss Carry Forward
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
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3,100 AGI 206,200 New AGI 203,200 b) Long Term Gain 2,100 Long Term Loss 1,720 Net Long Term Cap Gain 380 15% tax 57 Gain Net of Tax 323 AGI 206,200 New AGI 206,580 c) Long Term Loss 5,000 Short Term Loss 4,800 Total Capital Loss 9,800 Deductible Loss 3,000 Short Term Loss Carry Forward 1,800 Long Term Loss Carry Forward 5,000 AGI 206,200 New AGI 203,200 d) Short Term Loss 5,600 Long Term Gain 1,500 Net Short Term Cap Loss 4,100 Deductible Loss 3,000 Short Term Loss Carry Forward 1,100 AGI 206,200 New AGI 203,200 28. a) Ms. Reid can deduct the $1,100 dividend received. b) Ms. Reid can deduct the $690 interest on her certificate. c) Ms. Reid can deduct her investment expense of $3,900....
View Full 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