show how you got answer Melba incurred the following expenses for her dependent
ID: 2503074 • Letter: S
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Melba incurred the following expenses for her dependent daughter during the current year: Payment of principal on daughter's automobile loan $3,600 Payment of interest on above loan 2,900 Payment of daughter's property taxes 1,800 Payment of principal on daughter's personal residence loan 2,800 Payment of interest on daughter's personal residence loan 7,000 How much may Melba deduct in computing her itemized deductions? $0. $8,800. $11,700. $18,100. None of the above. Which of the following must be capitalized by a business? Replacement of a windshield of a business truck which was broken in an accident. Repair of a roof of a building used in business. Amount paid for a covenant not to compete. Only b. and c. must be capitalized. a., b., and c. can be expensed rather than capitalized. In January, Lance sold stock with a cost basis of $26,000 to his brother, James, for $24,000, the fair market value of the stock on the date of sale. Five months later, James sold the same stock through his broker for $27,000. What is the tax effect of these transactions? Disallowed loss to James of $2,000; gain to Lance of $1,000. Disallowed loss to Lance of $2,000; gain to James of $3,000. Deductible loss to Lance of $2,000; gain to James of $3,000. Disallowed loss to Lance of $2,000; gain to James of $1,000. None of the above. Jed is an electrician. Jed and his wife are accrual basis taxpayers and file a joint return. Jed wired a new house for Alison and billed her $15,000. Alison paid Jed $10,000 and refused to pay the remainder of the bill, claiming the fee to be exorbitant. Jed took Alison to Small Claims Court for the unpaid amount and was awarded a $2,000 judgement. Jed was able to collect the judgement but not the remainder of the bill from Alison. W hat amount of loss may Jed deduct in the current year? $0. $2,000. $3,000. $5,000. None of the above.Explanation / Answer
41. C Amount Paid for a covenant not to compete
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