During 2022, she drove the car 16,200 miles. 12,325 of those miles were for business purposes (7,300 miles through 6/30, 5,025 miles through 12/31). She paid a total of $650 of insurance, $1,280 of interest on her car loan, $830 for repairs & maintenance, $270 for licensing, and $2,310 for fuel. She also paid $225 for parking and tolls exclusively on business trips. She uses the standard mileage rate to compute her transportation deduction for the year. What is her total deduction for expenses related to her car for 2022.
Q: Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the…
A: cost of capital = r = 15%Net Present Value = - capital Investment + Present Value of Cash Flow
Q: The directors of Raga Limited are considering a new business opportunity. This involves the purchase…
A: The payback period refers to the period which is required to meet the initial investment with the…
Q: Well wants to pay off his massive student debt as soon as possible. His balance is currently 35,000…
A: When a lender makes a loan to a borrower, he charges an interest rate based on the amount borrowed.…
Q: Q8. Required information A new advertising campaign by a company that manufactures products that…
A: The external rate of return is computed by making an assumption that excess revenues are reinvested…
Q: Capital rationing (S5.4) Suppose you have the following investment opportunities, but only $90,000…
A: We can evaluate each project on the basis of profitability index(PI) which shows profit per dollar…
Q: Suppose you have $20,000 total. If you put $14,000 in Stock A and the remainder in Stock B, what…
A: Return of portfolio refers to adding each of the probable return, i.e expected return are multiplied…
Q: In the summation (cost) method of valuation, which of the following steps is the ONLY one that a…
A: The summation method of valuation or cost method of valuation is the technique that is used to make…
Q: Prepare an incremental analysis of Wildhorse Hospital. (In the first two columns, enter costs and…
A: In the process of capital budgeting various decision regarding choice of retaining and alternate…
Q: 7. IRR (S5.3) Calculate the IRR (or IRRS) for the following project: Co C1 +3,500 -3,000 For what…
A: NPV is the Initial Investment deducted from sum discounted future cash flows.IRR refers to the…
Q: H5. Generally, which of the following non-cash charges is/are added to earnings after tax to…
A: The correct answer is: Only statement I is correct.
Q: rockett Graphic Designs Inc. is considering two mutually exclusive projects. Both projects require…
A: Project A-Using a financial calculator, input the following data-CF0= -11000, CF1= 6000, CF2= 8000…
Q: Problem 7-21 Dividend Yield [LO 3] You’ve collected the following information from your favorite…
A: The dividend yield is a financial ratio that indicates the percentage return an investor can expect…
Q: The table below shows the closing monthly stock prices for IBM and Amazon. Calculate the exponential…
A: Three-month exponential moving average refers to the technical chart that indicates mainly on the…
Q: A company has the following income statement. What is its net operating profit after taxes (NOPAT)?…
A: Net operating profit after taxes is also called as NOPAT. It is the profit which is earned by the…
Q: Shooting Star, Inc. is considering a project that would have an eight-year life and would require a…
A: For presenting investment plans to stakeholders like shareholders, board members, or lenders,…
Q: After successfully completing your corporate finance class, you feel the next challenge ahead is to…
A: Straight voting refers to the voting scheme in which directors are to be elected by the shareholders…
Q: Jimmy Shoes Inc. has 10,000 shares outstanding with a stock price of $40 per share. The current…
A: As per the given information:
Q: You own a coal mining company and are considering opening and maintenance are expected to cost $1.9…
A: Cost of project is $117.10 millionCashflows $21.5 millionCost of capital is 8.1%
Q: Debt/Capital ratio is 0. RÔE CV Debt/Capital ratio is 10%, interest rate is 9%. % % ROE= U= CV =…
A: First let us list the formula to determine amount the debt for each scenario. Debt = Debt/Capital…
Q: ILK has preferred stock selling for 97 percent of par that pays an 8 percent annual coupon. What…
A: Selling price=97%Annual coupon =8%Required:Cost of Preferred Stock=?
Q: (Present value of an uneven stream of payments) You are given three investment alternatives to…
A: The present value of the Investment is calculated with the help of cash flows and discount rates.…
Q: An analyst gathers the following data: * Expected (estimated) rate of return on the market = 15% *…
A: Expected (estimated) rate of return on the market = Rm =15%Risk Free Rate = Rf = 8%Expected…
Q: Mary has $55,000 in a brokerage account, and she plans to deposit an additional $8,500 at the end of…
A: Loans are frequently designed to be repaid within a predetermined time frame. At the time of loan…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: To calculate the monthly finance charge using different methods, let's consider the given…
Q: in the past five years. Assuming that the tax rate is 25% and that these figures will be sustained…
A: Free cash flow (FCF) is a financial metric used to measure the amount of cash that a business…
Q: 5. IRR (S5.3) Write down the equation defining a project's internal rate of return (IRR). In…
A: The internal rate of return is an important concept. It is the rate of return at which the present…
Q: Marme, Inc. has preferred stock selling for 96 percent of par that pays an 11 percent annual coupon.…
A: Annual coupon payment=11%Selling price=96% of ParRequired:Cost of Preferred Stock=
Q: How much money should be invested in an account that earns 3% interest, compounded monthly, in order…
A: Present value refers to the value of a future amount of money at the current time, factoring in a…
Q: Where are the numbers from step 4 derived from?
A: When a future value is multiplied with the present value factor, it turns to be present value.…
Q: Suppose Heather borrows $3000 at an interest rate of 11% compounded each year. Assume that no…
A: Future value is the estimation of future cash value which is likely to be received in the future…
Q: Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7 Stock X 7% 1% -2% -3% 5% 11% 5%…
A: PeriodStock XStock Y10.07-0.0420.010.13-0.020.044-0.030.0850.050.0760.11-0.0170.05-0.03Required:The…
Q: Suppose a bank provides the following quotes: Bid 1.2567 CAD per U.S. Dollar and Ask 1.2682 CAD per…
A: In the exchange rate market, the bid price refers to the price that the broker is willing to pay for…
Q: • Maximize the average return per dollar • The average risk of the portfolio should not be more than…
A: Excel's Solver feature in the data section is excellent for increasing or decreasing the value of a…
Q: We will derive a two-state call option value in this problem. Data: S0 = $190; X = $200; 1 + r =…
A: In the given question , we have a two state call option value in this problem, ; X = $200 ; 1+r =…
Q: (Comprehensive problem) You would like to have $59,000 in 15 years. To accumulate this amount, you…
A: Annuity is the series of equal cash payments over the period.
Q: The Superior Tool Company is repaying a debt of $16,000 by payments of $1000 (a) How many payments…
A: Debt is loan that carry the interest rate on that but these are paid by periodic payment that carry…
Q: The Lesseig Company has an opportunity to invest in one of two mutually exclusive machines that will…
A: We are going to determine the NPV of both the projects. For this we need to assume that the machine…
Q: bs Away, an American gaming MNC with a subsidiary in Thailand expects to receive 30 million, 40…
A: Value of subsidiary would be the present value of cash flow from the subsidiary that are going to be…
Q: ABC Inc. has a the capital structure shown below. Liabilities Stockholders' Equity $122,099,000…
A: Optimal capital Structure is a form of capital structure wherein the total cost is minimum.
Q: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $519,000 home…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: One year ago, Carson Industries issued a 10-year, $1,000 PAR coupon bond at its PAR value. This…
A: The expected total return on a bond, providing it is kept until its maturity date and that all…
Q: hoose a publicly traded company that interests you and find the price of its stock on your last…
A: Stock price refers to an amount that is being used for buying and selling the stocks in the market…
Q: -W-h-y- -d-o- -y-o-u- -s-u-p-p-o-s-e- -t-h-a-t- -la-r-g-e-,- -w-e-l-l-k-n-o-w-n- -c-o-m-p-a-n-i-e-s-…
A: Costs: The listing fees for NASDAQ are generally lower than those of the NYSE. For large,…
Q: In the summation (cost) method of valuation, which of the following steps is the ONLY one that a…
A: The summation method of valuation or cost method of valuation is the technique that is used to make…
Q: CASE 1 If Richland Crane maintains the same yuan price and in effect sells for fewer dollars, the…
A: We are going to solve this question using the logic below:Sales volume from year 2 onwards =…
Q: A fem raises capital by selling $30,000 worth of debt with flotation costs equal to 1% of its par…
A: A firm can raise debt through two main means – debt and equity.Debt refers to borrowings made by a…
Q: Beasley Industries' sales are expected to increase from $5 million in 2017 to $6 million in 2018, or…
A: A company needs additional funds to finance the increase in assets required to support the increase…
Q: REQUIRED Use the information provided below to calculate the following: 5.1 Payback period of both…
A: NPV, IRR and payback period are capital budgeting tools to decide on whether the capital project…
Q: WRE is currently trading at $120/share. You sold 8 PUT-option contracts on WRE with a strike price…
A: Current Price = $120No of Put Options = 8Strike Price = $110Premium = $8
Q: E-Eyes.com just issued some new 20/20 preferred stock. The issue will pay an annual dividend of $28…
A: Current price of stock is depende upon the future benefits from the stock. It can be calculate with…
During 2022, she drove the car 16,200 miles. 12,325 of those miles were for business purposes (7,300 miles through 6/30, 5,025 miles through 12/31). She paid a total of $650 of insurance, $1,280 of interest on her car loan, $830 for repairs & maintenance, $270 for licensing, and $2,310 for fuel. She also paid $225 for parking and tolls exclusively on business trips. She uses the standard mileage rate to compute her transportation deduction for the year. What is her total deduction for expenses related to her car for 2022.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- . Paul is a self-employed investment adviser who uses his automobile for business. Paul drove his automobile a total of 20,000 miles during 2019; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,200. a. How much is Paul's transportation deduction based on the standard mileage method? b. How much is Paul's transportation deduction based on the actual cost method? c. Which method should Paul use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? d. Where should he deduct the transportation expense on his current year tax return?In 2018, Ensley drove her automobile 28,500 miles. She incurred the following expenses during the year related to the automobile:Gas and oil, lubrication: $1,800 Insurance: $980Repairs: $360Licenses and registration fees: $50Business parking and tolls: $170She uses the automobile 80% for business. Based on the data, Ensley's automobile deduction under the actual cost method isSiena's record keeping application shows she also drove 1, 100 miles between deliveries and 560 miles driven between home and the first and last delivery point of the day. She also drove 10,000 miles for personal purposes. Siena does not have a separate car for personal use. She started using her car for business on May 17, 2023. Siena also kept receipts for the following out-of-pocket expenses:o $100 on tollso $50 for parkingo $48 for parking ticketso $150 for snacks and lunches Siena consumed while working Siena provided the Form 1099 - K that she received from Delicious Deliveries. Siena contributed $6,000 to her traditional IRA. She also contributed to her retirement plan at work. Siena, Kenna, and Stacy are U.S. citizens, have valid Social Security numbers, and lived in the United States all year. 12. How many miles can Siena claim for the business mileage expense?a. 1,100 b. 5,700 c. 6,800 d. 7,360
- Masoud drove his vehicle exclusively for ride-hailing in 2022. He drove 8,354 total miles, 4,300 from January 1 to June 30 and the remainder (4,054) after that. His actual expenses were: Gas and oil $2,150 Auto insurance $1,350 New tires $500 Registration fees $450 Depreciation $1,200 New brakes $300 Speeding ticket $250 What is Masoud's allowable vehicle expense deduction?Brittany, who is an employee, drove her automobile a total of 20,000 business miles in 2022. She drove 10,000 miles in the first half of the year and 10,000 miles in the second half of the year. This represents about 75% of the auto's use. She has receipts as follows: parking(business only) $500 tolls (business only) 200 Repairs $1000 Brittany's AGI for the year of $50,000, and her employer does not provide any reimbursement. She uses the standard mileage rate method. After application of any relevant floors or other limitations, Brittany can deduct A) $0. B) $12,000. C) $11,825. D) $13,000.Jose purchased a vehicle for business and personal use. In 2022, he used the vehicle 20,000 miles (80% of total) for business and calculated his vehicle expenses using the standard mileage rate (mileage was incurred ratably throughout the year). He paid $1,800 in interest and $175 in property taxes on the car. Required: Calculate the total business deduction related to the car. Do not round intermediate calculations. Round your final answer to the nearest whole number. Schedule C Schedule A Total Deduction
- This year (2022), Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $74,850 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,970 Cost of purchasing a delivery uniform 1,570 Cash contribution to State University deliveryman program 1,385 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's student loans this year. What is Evan's AGI? What is Evan's Taxable Income?David is a self-employed investment adviser who uses his automobile for business. David drove his automobile a total of 28,000 miles during 2020; 75 percent was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $8,400. a. How much is David’s transportation deduction based on the standard mileage method? b. How much is David’s transportation deduction based on the actual cost method? c. Which method should David use to calculate his transportation deduction, assuming he used the standard mileage method in the prior tax year? Why? d. Where should he deduct the transportation expense on his current year tax return?This year (2022), Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $72,600 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,820 Cost of purchasing a delivery uniform 1,420 Cash contribution to State University deliveryman program 1,310 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's student loans this year. Please post the right solution for this problem, for year 2022. This is for Tax 4001. Thank you.
- This year (2022), Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $74,400 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,940 Cost of purchasing a delivery uniform 1,540 Cash contribution to State University deliveryman program 1,370 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's student loans this year.Jos is a Sales Manager. He uses his own car to travel to various locations. He acquired the car on 1 October 2021 for $60,000. The acquisition cost was funded entirely by a loan at an interest rate of 15%. He has determined that the depreciation deduction on the car would be $2,300 for the year. In addition, Jos incurred the following expenses during the year: Registration and insurance = $2,000; Repairs and maintenance = $1,000; and Oil and fuel costs = $1,500. For the period 1 October 2021 to 30 June 2022, Jos estimates that the car travelled 15,000 kilometres, 12,000 of which were for business purposes. You may assume that Jos has maintained all necessary records and a logbook. Required: Calculate Jos's deduction for car expenses under the two methods (cent per kilometre rate 0.72 and logbook) in Div 28 of Income Tax Assessment Act 1997. Assume that depreciation has been adjusted for part-year use and the impact of the car limitOn July 1, 2017, Brent purchases a new automobile for $49,000. He uses the car 88% for business and drives the car as follows: 7,000 miles in 2017, 17,500 miles in 2018, 19,600 miles in 2019, and 14,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round your computations to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $fill in the blank 5d0ce403cfe2029_1 2018: $fill in the blank 5d0ce403cfe2029_2 2019: $fill in the blank 5d0ce403cfe2029_3 2020: $fill in the blank 5d0ce403cfe2029_4 Brent's adjusted basis in the auto on January 1, 2021, is $fill in the blank 5d0ce403cfe2029_5. b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is…