Brian's Jones' sound engineering business had services Income (cash receipts) of $ 90,000, along with expenses...
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Brian's Jones' sound engineering business had services Income (cash receipts) of $ 90,000, along with expenses of: studio rent $ 8,270, supplies $5,300, insurance $ 18,500, business property taxes and licenses of $ 6,900 and interest on a business loan of $ 14,500, the loan principal balance was $ 110,000. All of these expenses were paid by Brian during the year, and the expenses related to months of this year, 2016, except for the supplies which were used up early in 2017. Brian lives in L. A., is single, age 50 and no dependents. Brian has bank interest of $ 2,300 and paid home mortgage interest of $ 22,000 for 2016 during 2016. Brian paid (on 12-10-2016) the total annual property tax bill for his home, for a total of $ 2,700. Sales of inventory are made both in cash and on account. The cash sales for 2016 were $ 350,000, and the sales on account were $ 45,000. Accounts receivable 1-1-2016 balance was $ 50,000 and the ending 12-31 2016 accounts receivable balance was $ 35,000. The beginning inventory balance for 2016 was $ 120,000 the 2016 purchases were all paid for in cash fc a total of $254,000, with an ending inventory balance of $ 75,000. Land bought in 2010 costing $ 25,00 was sold during 2016 for $ 35,000, a fully depreciated building (originally costing $ 200,000, straight lin method used) was sold for $45,000, and an item of equipment costing $ 35,000 that had been fully expensed under section 179 in 2012 was sold for $ 7,500. Two items were bought from Brian's dad, Lewis, used, office furniture, for $16,000 and a computer fo $6,000 and both were bought and placed into service the same day, February 28, 2016. 2016 depreciation for the business from prior year's acquisitions totaled $ 12,000. Brian paid estimated federal income taxes for the 2016 tax year of $ 12,750 each quarter, and paid th when due. Brian paid $ 4,300 for last year's state income tax on April 15, 2016, along with four 2016 year estimates for state income taxes of $ 2,000 each, paying three during 2016 with the last mailed January 15, 2017. Brian had no net unrecaptured section 1231 losses from the last five tax years. Brian's gross receipts averaged under $1 million for the prior three tax years. What is Brian's tax refund or amount due for tax year 2016? Brian's Jones' sound engineering business had services Income (cash receipts) of $ 90,000, along with expenses of: studio rent $ 8,270, supplies $5,300, insurance $ 18,500, business property taxes and licenses of $ 6,900 and interest on a business loan of $ 14,500, the loan principal balance was $ 110,000. All of these expenses were paid by Brian during the year, and the expenses related to months of this year, 2016, except for the supplies which were used up early in 2017. Brian lives in L. A., is single, age 50 and no dependents. Brian has bank interest of $ 2,300 and paid home mortgage interest of $ 22,000 for 2016 during 2016. Brian paid (on 12-10-2016) the total annual property tax bill for his home, for a total of $ 2,700. Sales of inventory are made both in cash and on account. The cash sales for 2016 were $ 350,000, and the sales on account were $ 45,000. Accounts receivable 1-1-2016 balance was $ 50,000 and the ending 12-31 2016 accounts receivable balance was $ 35,000. The beginning inventory balance for 2016 was $ 120,000 the 2016 purchases were all paid for in cash fc a total of $254,000, with an ending inventory balance of $ 75,000. Land bought in 2010 costing $ 25,00 was sold during 2016 for $ 35,000, a fully depreciated building (originally costing $ 200,000, straight lin method used) was sold for $45,000, and an item of equipment costing $ 35,000 that had been fully expensed under section 179 in 2012 was sold for $ 7,500. Two items were bought from Brian's dad, Lewis, used, office furniture, for $16,000 and a computer fo $6,000 and both were bought and placed into service the same day, February 28, 2016. 2016 depreciation for the business from prior year's acquisitions totaled $ 12,000. Brian paid estimated federal income taxes for the 2016 tax year of $ 12,750 each quarter, and paid th when due. Brian paid $ 4,300 for last year's state income tax on April 15, 2016, along with four 2016 year estimates for state income taxes of $ 2,000 each, paying three during 2016 with the last mailed January 15, 2017. Brian had no net unrecaptured section 1231 losses from the last five tax years. Brian's gross receipts averaged under $1 million for the prior three tax years. What is Brian's tax refund or amount due for tax year 2016?
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The tax refund or amount due for tax year 2016 is 0 Brians taxable income f... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
Posted Date:
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