a. Josh borrowed $70,000 from the First State Bank using his business assets as collateral. He...
a. Josh borrowed $70,000 from the First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $11,000 on the borrowed funds, but he received $5,700 of interest on the bonds.
Deductible Amount:
Homework Answers
$0. The interest expense is not deductible (expense associated with tax-exempt income)
Add Answer to:
a. Josh borrowed $70,000 from the First State
Bank using his business assets as collateral. He...
Nikolas borrowed $14,000 to purchase new equipment for his landscaping business. The bank has loaned him...
Nikolas borrowed $14,000 to purchase new equipment for his landscaping business. The bank has loaned him this money at an annual interest rate of 7.5%. How much will Nikolas owe the bank when he repays his loan in eighteen months using simple interest?
Harvey quit his job at state university where he earned 45000
Harvey quit his job at state university where he earned 45000. He figures that his entrepreneurial talent or forgone entrepreneurial income to be 5000. To start his business he cashed in 100,000 in bonds that earned 10% interest annually to buy a software company. In the first year the firm sold 11,000 units of software for $75 for each unit. Of the $75 per unit $55 goes to the cost of production, etc. the implicit cost of Harvey's firm in...
TAX RETURN PROBLEM #3 Josh Bari, age 40, is single. His Social Security number is 111-11-1111,...
TAX RETURN PROBLEM #3 Josh Bari, age 40, is single. His Social Security number is 111-11-1111, and he resides at 150-51 Ave. A, Tangers, NY 11234. Josh has a 5-year-old child, Kendra, who lives with her mother, Katy. As a result of his divorce in 2017, Josh pays alimony of $6,000 per year to Katy and child support of $12,000. The $12,000 of child support covers 65% of Katy’s costs of rearing Kendra. Kendra’s Social Security number is 123-45-6789, and...
This fall Mark finally repaid his student loan. He originally borrowed the money to pay tuition...
This fall Mark finally repaid his student loan. He originally borrowed the money to pay tuition several years ago, when she attended State University (a qualified educational institution). This year Mark paid a total of $2,400 of interest on the loan. If Mark files single and reports $75,000 of income and no other items of income or expense, how much of the interest can he deduct?Mark can deduct $2,400 for AGI. Mark can deduct $800 for AGI. Mark can deduct...
Molly is an owner of a small business. His company has recently borrowed a large amount...
Molly is an owner of a small business. His company has recently borrowed a large amount of funds to finance the construction of a large building addition, as well as, the purchase of equipment and machinery. Molly banker requires him to submit quarterly financial statements so that he can monitor the financial health of his business. The bank has warned that if profit margins decline, the interest rate on the loan may need to be increased in order to reflect...
This fall Mark finally repaid his student loan. He originally borrowed the money to pay tuition...
This fall Mark finally repaid his student loan. He originally borrowed the money to pay tuition several years ago, when she attended State University (a qualified educational institution). This year Mark paid a total of $2,400 of interest on the loan. If Mark files single and reports $75,000 of income and no other items of income or expense, how much of the interest can he deduct? Multiple Choice 0 Mark can deduct $2.400 for AGI. Mark can deduct $800 for...
Kelly Jones and Taml Crawford borrowed $24,000 on a 7-month, 8% note from Gem State Bank...
Kelly Jones and Taml Crawford borrowed $24,000 on a 7-month, 8% note from Gem State Bank to open their business, Sunland's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation June 1 Prepare the entry to accrue the...
Kelly Jones and Tami Crawford borrowed $15,750 on a 7-month, 8% note from Gem State Bank...
Kelly Jones and Tami Crawford borrowed $15,750 on a 7-month, 8%
note from Gem State Bank to open their business, JC’s Coffee House.
The money was borrowed on June 1, 2017, and the note matures
January 1, 2018.
Prepare the entry to record the receipt of the funds from the
loan. (Credit account titles are automatically indented
when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation
Debit
Credit
June 1
Prepare the entry to accrue the...
Kelly Jones and Tami Crawford borrowed $10,500 on a 7-month, 8% note from Gem State Bank...
Kelly Jones and Tami Crawford borrowed $10,500 on a 7-month, 8% note from Gem State Bank to open their business, JC’s Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 Cash 10500 Notes Payable 10500 Prepare...
On 30 September 2012, Frank borrowed money from his parents. He promised that he would repay...
On 30 September 2012, Frank borrowed money from his parents. He promised that he would repay the money on 30 September 2018, with interest at a nominal interest rate of 8% p.a., compounding quarterly. The total amount that he was due to pay his parents at that time was exactly $11,000 but he started his studies at university so he couldn’t afford to repay the loan. If interest continues to accrue, what amount must Frank pay on 30 September 2021...
This fall Mark finally repaid his student loan. He originally borrowed the money to pay tuition several years ago, when she attended State University (a qualified educational institution). This year Mark paid a total of $2,400 of interest on the loan. If Mark files single and reports $75,000 of income and no other items of income or expense, how much of the interest can he deduct? Multiple Choice 0 Mark can deduct $2.400 for AGI. Mark can deduct $800 for...
Kelly Jones and Taml Crawford borrowed $24,000 on a 7-month, 8% note from Gem State Bank to open their business, Sunland's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation June 1 Prepare the entry to accrue the...
Kelly Jones and Tami Crawford borrowed $15,750 on a 7-month, 8%
note from Gem State Bank to open their business, JC’s Coffee House.
The money was borrowed on June 1, 2017, and the note matures
January 1, 2018.
Prepare the entry to record the receipt of the funds from the
loan. (Credit account titles are automatically indented
when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation
Debit
Credit
June 1
Prepare the entry to accrue the...
Most questions answered within 3 hours.
-
A sample of 3 is selected from 9 cards. How many permutation is
possible? Show Work.
asked 1 minute ago -
About the lecture of human resource management, give me the
process and schedule of how the...
asked 2 minutes ago -
Identify a commercial data mining software product (e.g., SAS)
and an open-source data mining product (e.g.,...
asked 3 minutes ago -
An investment project provides cash inflows of $770 per year for
11 years.
a. What is...
asked 4 minutes ago -
A fair D10 die is rolled 100 times. What is the probability of
rolling five 1s,...
asked 14 minutes ago -
Other than hydrogen bonding, what is the major interaction that
causes proteins to fold into compact,...
asked 15 minutes ago -
In an RC circuit, the total resistance is 1 k ohm and the
battery voltage is...
asked 20 minutes ago -
CollegePak Company produced and sold 84,000 backpacks during the
year just ended at an average price...
asked 22 minutes ago -
Two fluids sit on top of one another in a tank. The fluid on top
is...
asked 29 minutes ago -
At the end of 2022, Honey Co. has accounts receivable of
$698,000 and an allowance for...
asked 38 minutes ago -
Consider an American put option. Suppose its stock price is $50
and its strike price is...
asked 37 minutes ago -
1. Compare and contrast the different methods used to
characterise a protein in terms of mass...
asked 48 minutes ago