Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1)G and her spouse are both employed and salaries are their sole source of income. In the current year G's employment income was $120,000 and

1)G and her spouse are both employed and salaries are their sole source of income. In the current year G's employment income was $120,000 and her spouse's was $125,000. They have two children ages 4 and 9. Child-care expenses for the year include the following: day care fees of $10,000 for the 4-year-old, after-school day care fees of $4,000 for the 9 year-old. What is the maximum amount that can be deducted from G's income for tax purposes in the current year?

2)In the current year F moved from Edmonton to Calgary to work at his employer's head office. He incurred the following expenses related to the move: moving company to pack and move belongings $8,000, sales commission on sale of Edmonton home $18,000, utility and property tax costs of Edmonton home subsequent to moving but prior to sale $6,100, land transfer tax to purchase new home in Calgary $7,000, and legal fee to sell Edmonton home $2,000. F's salary in the current year was $120,000 of which $31,000 was earned while living in Calgary. What is the maximum amount that can be deducted from F's income for tax purposes in the current year?

If you don't mind, could you please show the process of how you got your answer. Thank you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Decision Making and Control

Authors: Jerold Zimmerman

8th edition

78025745, 978-0078025747

Students also viewed these Accounting questions