Business Assignment- Accounting homework

Business Assignment- Accounting homework

39. David is a college professor who does some consulting work on the side. He uses 25% of his home exclusively for the consulting practice. He is single and 63 years old. His AGI (without consideration of consulting income) is $45,000. Other information follows:
    Income from consulting business $4,000
    Consulting expenses other than home office 1,500
    Total costs relating to home:
    Interest and taxes 6,500
    Utilities 1,500
    Maintenance and repairs 450
    Depreciation (business part only) 1,500
    
    Calculate David’s AGI:
    
    
40. Jose purchased a vehicle for business and personal use. In 2013 he used the vehicle 18,000 miles (80%) for business and calculated his vehicle expenses using the standard mileage rate (mileage was incurred ratably throughout the year). He paid $1,400 in interest and $150 in property taxes on the car. Calculate the total business deduction related to the car:
    
    53. Derrick owns a farm in eastern North Carolina. A hurricane hit the area and destroyed a farm building and some farm equipment and damaged a barn.
    Item Adjusted basis FMV before damage FMV after damage Insurance proceeds
    Building $85,000 $115,000 $0 $55,000
    Equipment 68,000 49,000 0 15,000
    Barn 95,000 145,000 95,000 35,000
    
    Due to the extensive damage throughout the area, the president of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return with his wife, had $45,000 of taxable income last year. Their taxable income for the current year is $150,000, excluding the loss from the hurricane. Calculate the amount of the loss deductible by Derrick and his wife and the years in which they should deduct the loss.
    (Hint: Chapter 5 provides information concerning nationally declared disaster areas.)
    
    
    55. Eric, who is single, participates in an activity that is appropriately classified as a hobby. The activity produces the following revenue and expenses:
    
    Revenue $12,000
    Property taxes 2,000
    Materials and supplies 4,000
    Utilities 1,500
    Advertising 1,900
    Insurance 775
    Depreciation 5,000
    Without regard to this activity, Eric’s AGI is $55,000. Determine how much income Eric must report, the amount of the expenses he is permitted to deduct, and his AGI:
    
    56. In 2013 Landon has self-employment earnings of $195,000. Compute Landon’s self-employment tax liability and the allowable income tax deduction of the self-employment tax paid.