Acme Corporation had the following expenses: 1. 1,000 pads of paper embossed with the company logo to hand out at the Big Time Convention $700 2. Display racks to use at the convention center 200 3. An all-expense vacation for Susie’s 25 years of service awarded under a qualified plan 2,500 4. A golden cone to recognize Wayne’s on the job safety record 320 Acme has a qualified plan for the job awards. Calculate Acme’s total deductions for the above expenses.
Only the awarded amounts (point 3 and 4) should come under deductions.
The limit is $400 award for each employee, and in aggregate the maximum limit is $1,600.
There are two employees – S and W.
S gets $2,500. Its limit is $400.
W gets $320 (recorded value). It is below the limit for a single employee. Therefore, $320 should be considered.
Total deduction = $400 + $320 = $720 (Answer)
Acme Corporation had the following expenses: 1. 1,000 pads of paper embossed with the company logo to hand out at the Bi...
Comprehensive Income Tax Course: Module 1 4. Randy turned 16 last year and had his first summer job. Even though his parents are claiming him as a dependent he wants to file a return in order to get his refund. He receives his W-2 and decides he can do his own return using form 1040-EZ. Which of the following information is not found on a Form W-2? a) The taxpayer’s Social Security number b) The taxpayer’s wages, tips and other...