Assignment ch 3 - 2007 $200,000 $50,000 $25,000 2008...

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Assignment Week 1 3-31-Adjusted gross income $40,000 Itemized deduction 11,750 Personal exemptions 14,600 (4 *3,650) Taxable income $13,650 The taxpayers are allowed to claim a personal exemption and receive a $3,650 deduction in 2009. 3-32 Adjusted gross income $70,000 Itemized deduction 9,000 Personal exemptions 10,950 (3*3,650) Taxable income $50,050 3-36 According to: Itemized deductions are phased out once a taxpayer’s AGI exceeds $166,800 (for married filing separate, the phase out begins at $83,400). The phase out is computed as 1/3 of 3% of the amount of AGI over $166,800 ($83,400 married filing separate). Adjusted Gross Income $500,000 166, 800 AGI in excess 333,20 0* 3% of AGI 9,99 6 1/3 of the 3% 3,33 2 Itemized deduction 20,000 Less 3% of AGI in excess 3,33 2 Duke and Pat’s Itemized deductions 2009 $16,668 13-55 Year Installment sales Gross Profit 2009 Collections
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Unformatted text preview: 2007 $200,000 $50,000 $25,000 2008 300,000 81,000 80,000 2009 400,000 96,000 125,000 2007: Total sales (contract price) = $200,000, gross profit = $50,000 Gross profit percentage 2005 sales= gross profit/contract price = 25% 2008: Total sales = $300,000, gross profit = $81,000 Gross profit percentage for 2006 sales = 27% 2009: Total sales = $400,000, gross profit = $96,000 Gross profit percentage for 2007 = 24% Therefore, any collections in 2007 for a particular year will be multiplied by the gross profit percentage for that year. Collections from 2007 = $25,000 X .25 = $6250 Collections from 2008 = $80,000 X .27 = $21,600 Collections from 2009 = $125,000 X .24 = $30,000 Therefore Mr. Z's installment sale income for 2007 will be (6250 + 21,600+ 30,000) = $57,850 for 2007. This does not include his interest income. 13-69 a-) Gross income b-) Deduction c-) Gross income d-) Gross income e-) Gross income f-) Deduction g-)If this amount is collected in the next year. It could be gross income...
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Assignment ch 3 - 2007 $200,000 $50,000 $25,000 2008...

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