accounting-question-344

by

4 accounting question, APA style, 2 page. each question separate with question.

Question 1

Robert, a new client of yours, is a self-employed caterer in Santa Fe, New Mexico. Robert drives his personal van when delivering catered meals to customers. You have asked him to provide the amount of business miles driven using his vehicle. You are planning on using the standard mileage method to calculate Robert’s deduction for transportation costs. Robert has responded by saying, “Well, I don’t really keep track of my miles. I guess I drove around 3,000 miles last year for the business.” What would you say to Robert?

Question 2
Your supervisor has asked you to research the following situation concerning Aurora Browning. Aurora is a self-employed attorney practicing in Seattle, Washington. Aurora attended a legal convention that was held on an Alaskan cruise departing from and returning to Seattle, Washington. The cruise ship was a vessel registered in the United States. Aurora’s associated expenses were:

  • Cost of cruise (not including meals) $2,734
  • Total cost of meals while on the cruise $350
  • Cost of seminars while on the cruise $500
  • Total $3,584

Required: Go to the IRS website (www.irs.gov) and locate Publication 463. Review the chapter on Travel. Write a letter to Aurora Browning stating the amount, if any, of travel expenses she can deduct related to the convention cruise. If she is allowed any travel expenses, make sure to include in your letter the substantiation requirements.

Question 3:

Your supervisor has asked you to research the following situation concerning Scott and Heather Moore. Scott and Heather are married and file a joint return. Scott works full-time as a wildlife biologist, and Heather is a full-time student enrolled at Online University. Scott’s earned income for the year is $36,000. Heather does not have a job and concentrates solely on her schoolwork. The university she is enrolled in offers courses only through the Internet. Scott and Heather have one child, Elizabeth (age 8), and pay $3,000 for child care expenses during the year. Required: Go to the IRS website (www.irs.gov). Locate and review Publication 503. Write a file memorandum stating the amount of child and dependent care credit that Scott and Heather Moore can claim.

Question 4:

Charlie’s Green Lawn Care is a cash basis taxpayer. Charlie Adame, the sole proprietor, is considering delaying some of his December 2014 customer billings for lawn care into the next year. In addition, he is thinking about paying some of the bills in late December 2014, which he would ordinarily pay in January 2015. This way, Charlie claims, he will have “less income and more expenses, thereby paying less tax!” Is Charlie’s way of thinking all right?