26. 27. 28

it doesnt let me eddit the questins. I need 27 and 28 if you can, but 27 is my priority

26. Are any of the following losses deductible an individual's income tax return? If so, ish loss deductible "for" or "from" AGI? Explain cach loss. Amount 3.000 Loss Loss on sale of stock in an individual's wholly-owned business corporation Hobby loss in excess of hobby gross income Gambling losses in excess of gambling winnings Loss on sale of stock in individual's Investment portfolio Decline in value of stock held in individual's investment portfolio Loss on sale of personal automobila Total 9,000 7,000 2.000 $33.000 . 27. Which of the following trade or business expenditures of Ajax Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction Amount $400,000 250,000 1,400 16,000 Expenditure Salaries and wages to employees Purchase of new office building Payment of illegal parking fines of the company's President Payment of wedding expenses for President's daughter's wedding Entertainment expenses related to company business Interest on money borrowed to buy tax-exempt securities Total expenditures 25,000 9.000 $700.000 are of 28. Indicate whether the following expenditures are deductible for AGI, from AGI or not deductible. a. Medical expenses of individual taxpayer b. Safe deposit box rental for business c. Interest expense on business loan d. Investment counseling fees incurred by individual investor Gambling losses to extent of gambling winnings of individual gambler not involved in gambling business Deductions: General Concepts and Trade or Business veduction 29. Are any of the following expenditures deductible on an individual taxpayer's income tax return? Explain each item. Amount $100 3,000 250 Expenditure Cost of having income tax return prepared by a CPA Legal fee for divorce proceeding of which 20 percent related to tax planning advice Lost wages for time missed from work! while having income tax return prepared Legal fee for estate planning advice of which 35 percent related to tax planning advice Cost of having federal gift tax return prepared by a CPA Total expenditures 900 100 $4,350 30. Two years ago, Jack Peters borrowed $150,000 from the First National Bank which he used to buy equipment used in his business. Business slowed considerably this year, and Jack was unable to make non payments on the loan. To keep the bank from BE000.0 foreclosing on the note, Jack's father made several payments on the loan during the year. Of the total payments he made on the loan, ots $10,000 was attributable to interest and the remainder was applied to reduce the principal balance. Can Jack's father deduct the $10,000 in interest expense he paid on Jack's loan? Explain. 31. For the current month, Jackson Cement Co. incurred payroll expenses as follows: be Gross salaries and wages $675,000 Payroll taxes: OASDI (Social Security Tax) 41,850 employer's share HI (Medicare tax)-employer's share 9,788 726,638 Amounts withheld and paid to the government: Employee income taxes withheld (108.990) OASDI-employees' share (41,850) HI-employees' share (9,788) a. What amount can Jackson claim as a tax deduction for salary and wage expense? How much can Jackson deduct as tax expense? -b 26. Are any of the following losses deductible on an individual's income tax return? If so, is the loss deductible "for or from AGI? Explain each loss. Amount $4,000 3,000 8,000 Loss Loss on sale of stock in an individual's wholly-owned business corporation Hobby loss in excess of hobby gross income Gambling losses in excess of gambling winnings Loss on sale of stock in individual's investment portfolio Decline in value of stock held in individual's investment portfolio Loss on sale of personal automobile Total 9,000 7,000 2,000 $33,000 . 27. Which of the following trade or business expenditures of Ajax Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction. Amount $400,000 250,000 1,400 Expenditure Salaries and wages to employees Purchase of new office building Payment of illegal parking fines of the company's President Payment of wedding expenses for President's daughter's wedding Entertainment expenses related to company business 16,000 25,000 9,000 Interest on money borrowed to buy tax-exempt securities Total expenditures $700,400 28. Indicate whether the following expenditures are deductible for AGI, from AGI or not deductible. a. Medical expenses of individual taxpayer b. Safe deposit box rental for business c. Interest expense on business loan d. Investment counseling fees incurred by individual investor i one. Gambling losses to extent of gambling winnings of individual gambler not involved in gambling business