1. Zoey Miller earned gross wages of $70,000 from Dell Corp. Her 2022 Form W-2 shows...
Fantastic news! We've Found the answer you've been seeking!
Question:
![](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2023/08/64e85c787fa73_1692949623317.jpg)
Transcribed Image Text:
1. Zoey Miller earned gross wages of $70,000 from Dell Corp. Her 2022 Form W-2 shows that $7,000 has been withheld from her paycheck for payment of federal income taxes. 2. Ben Miller also received Social Security benefits of $20,000 in 2022. 3. Ben Miller owns a used bookstore in Long Beach called Story Books. It is a sole proprietorship located at 2 Pine Ave, Long Beach, CA 90802. Its income and associated expens for the year ending December 31, 2022, are the following: $ 820,000 Gross income Less: Cost of Goods Sold Gross profit Interest expense Depreciation expense Office expense Supplies expense Meals expense Utilities expense Wages FICA taxes expense Total expense Net income/(loss) (442,000) 37/8.000 (31,500) ? (20,000) (7,000) (9,000) (4,400) (140,000) (8,000) $? On January 1, 2022, Story Books purchased and place in service a new delivery van (5- year property) for $60,000. The van's weight exceeds 6,000 pounds. Furthermore, it purchased bookcases (7-year property) for $30,000, and computers (5-year property) for $11,000 on March 1, 2022. Assume Story Books does not have any depreciable assets other than the new assets placed in service for 2022. It elected to use a maximum amount of Section 179. Story Books elected out of bonus depreciation. The business activity qualifies for the QBI deduction. 1. Zoey Miller earned gross wages of $70,000 from Dell Corp. Her 2022 Form W-2 shows that $7,000 has been withheld from her paycheck for payment of federal income taxes. 2. Ben Miller also received Social Security benefits of $20,000 in 2022. 3. Ben Miller owns a used bookstore in Long Beach called Story Books. It is a sole proprietorship located at 2 Pine Ave, Long Beach, CA 90802. Its income and associated expens for the year ending December 31, 2022, are the following: $ 820,000 Gross income Less: Cost of Goods Sold Gross profit Interest expense Depreciation expense Office expense Supplies expense Meals expense Utilities expense Wages FICA taxes expense Total expense Net income/(loss) (442,000) 37/8.000 (31,500) ? (20,000) (7,000) (9,000) (4,400) (140,000) (8,000) $? On January 1, 2022, Story Books purchased and place in service a new delivery van (5- year property) for $60,000. The van's weight exceeds 6,000 pounds. Furthermore, it purchased bookcases (7-year property) for $30,000, and computers (5-year property) for $11,000 on March 1, 2022. Assume Story Books does not have any depreciable assets other than the new assets placed in service for 2022. It elected to use a maximum amount of Section 179. Story Books elected out of bonus depreciation. The business activity qualifies for the QBI deduction.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Family Information: Husband Ian Young SSN 598-94-2583 Birthday: 8/21/1960 Wife Ivy Young SSN 301-52-2942 Birthday: 4/15/1966 Home address 461 Golden Ave, Long Beach, CA 90802 Son Victor Young SSN...
-
1. an Young owns a used bookstore in Long Beach called Story Books. It is a sole proprietorship located at 2 Pine Ave, Long Beach, CA 90802. Its income and associated expenses for the year ending...
-
A bakery with a December 31 st year end purchased new equipment on October 31 st 2000 for $10,000. This was their first equipment purchase. Required: What are the tax consequences if the equipment is...
-
Fill in each blank so that the resulting statement is true. I find (f g)(x) by replacing each occurrence of x in the equation for_______ with________ .
-
The mean selling prices for a Subaru Outback of various ages are shown in Table 36. Let p be the mean price (in dollars) of a Subaru Outback of age a years. a. Use technology to construct a...
-
A limited company has authorised share capital of: 500,000 ordinary shares of $0.50 each 200,000 5 percent preference shares of $1 each. The company had actually issued 80 percent of its ordinary...
-
Ranking driving performance of professional golfers. Refer to The Sport Journal (Winter 2007) study of a new method for ranking the total driving performance of golfers on the Professional Golf...
-
Assume that a total $100 grant will be shared by the three researchers, X, Y, and Z. Each person is rational and selfish. There are six proposals with different shares of (X, Y, Z) for choices as the...
-
Hanks recently produced & sold 2777 units. Fixed costs per unit at this level of activity amounted to $8; variable costs per unit were $9. How much total cost would the company anticipate if during...
-
The price of Cilantro, Inc., stock will be either $60 or $80 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 6 percent. a. Suppose the current...
-
Help build a solid business case for Cindy Lous (existing candy shop) to launch the first ever lemonade truck in Whoville. Cindy Lous has been selling eight flavours of lemonade in their candy shop...
-
Home Base, Incorporated reports the following production cost information: Units produced 97,000 units Units sold 92,000 units Ending finished goods inventory 5,000 units Direct labor $17 per unit...
-
About New York City public sector finance. The other way is to delineate the problem. We should use data to show a problem, and then analyze the environment in which budgeting takes place to suggest,...
-
From a survey a company has determined that 23% of its customers are classified as "advocates" , 68% as "passives" and the remainder as "detractors" . Research suggests that during a year 15% of the...
-
The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $3,940 from a local bank on a note due in six months. b. Received $4,630 cash from investors and...
-
1. What are the deeper problems that plague in different forms it takes throughout the world according to the authors? Please, briefly explain. 2. Why was Joseph Schumpeter a pessimist about the...
-
Sturdy Bike Company makes the frames used to build its bicycles. During year 2, Sturdy made 20,000 frames; the costs incurred follow. Unit-level materials costs (20,000 units $35.00) $ 700,000...
-
How much more interest will be earned if $5000 is invested for 6 years at 7% compounded continuously, instead of at 7% compounded quarterly?
-
Deborah purchases a new $30,000 car in 2012 to use exclusively in her business. If Deborah does not elect to expense or take bonus depreciation in 2012 and holds the car until it is fully...
-
Frank Willingham has the following transactions during the year: Sale of office equipment on March 15 that cost $20,000 when purchased on July 1, 2010. Frank has claimed $5,000 in depreciation and...
-
Carol Harris, Ph.D, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335. Carol is an Associate Professor of Accounting at a local...
-
What is the present value annuity factor of $1.00 at a discount rate of 10% for 15 years? a. 5.0 b. 7.6 c. 10.0 d. 13.9
-
Donald has $100 today. He is aware of TWO investment opportunities: (a) invest $50 and expect to receive $55 in one years time, or (b) invest $100 today and expect to receive $120 in one years time....
-
What quarterly payment is necessary to accumulate $3.75 million over 20 years if the annual interest rate is 4% compounded quarterly? Assume payments are made at the end of each quarter. a. $733.0 b....
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App