ACC 307 help A Guide to career/Snaptutorial ACC 307 help A Guide to career/Snaptutorial | Page 3

AGI
$175,000
State income taxes
13,500
State sales tax
3,000
Real estate taxes
18,900
Gambling losses (gambling gains were $12,000)
6,800
Paul’s allowable itemized deductions for 2013 are:
7. Pedro’s child attends a school operated by the church the family
attends. Pedro made a donation of $1,000 to the church in lieu of the
normal registration fee of $200. In addition, Pedro paid the regular
tuition of $6,000 to the school. Based on this information, what is
Pedro’s charitable contribution?
8. Barry and Larry, who are brothers, are equal owners in Chickadee
Corporation. On July 1, 2013, each loans the corporation $10,000 at
an annual interest rate of 10%. Both shareholders are on the cash
method of accounting, while Chickadee Corporation is on the accrual
method. All parties use the calendar year for tax purposes. On June
30, 2014, Chickadee repays the loans of $20,000 together with the
specified interest of $2,000. How much of the interest can Chickadee
Corporation deduct in 2013?
9. Your friend Scotty informs you that he received a “tax-free”
reimbursement in 2013 of some medical expenses he paid in 2012.
Which of the following statements best explains why Scotty is not
required to report the reimbursement in gross income?
10. Emily, who lives in Indiana, volunteered to travel to Louisiana in
March to work on a home-building project for Habitat for Humanity
(a qualified charitable organization). She was in Louisiana for three
weeks. She normally makes $500 per week as a carpenter’s assistant
and plans to deduct $1,500 as a charitable contribution. In addition,
she incurred the following costs in connection with the trip: $600 for