Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you Please help me with the correct answers of these 3 Multiple Choice? Thank You! 1) An employee who is not a salesperson, qualifies

Can you Please help me with the correct answers of these 3 Multiple Choice? Thank You!

1) An employee who is not a salesperson, qualifies to claim 15% of their house expenses. The house expenses are mortgage interest of $7,000. Insurance of $200, utilities of $2,500, maintenance of $800 and property taxes of $1,800. What maximum amount would be claimed as an employment expense?

a) $795

b)$1845

c) $375

d) $495

2) An employee received the following: In 2020, a monthly salary: in 2021, a bonus based on performance in 2020, director's fees, and in 2020, a commission based om sales made in 2019. Which of the above amounts would not be included in the employee's 2020 employment income?

a) The bonus received in 2021 even though it was based on performance in 2020.

b) The commission received in 2020 as it was based on 2019 sales. The commission should have been included in 2019 employment income.

c) The monthly salary

d) The director's fee as directors would not be considered as employees of the payer. The fees would be included in income in 2020 but not as employment income.

3) An employee qualifies to claim travel expenses. They use their personally leased vehicle, costing $900/month. While travelling, they incur costs for gas of $2,000, repairs of $800, and parking during work of $300. Of the 25,000 km driven in the year, 15,000 km were work related. No amounts were paid or reimbursed by the employer. What would be the claim for travel expenses? ( Ignore all sales taxes)

a) $4,960

b) $8,460

c) $12,400

d) 7,740

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

Students also viewed these Accounting questions

Question

What are the advantages and disadvantages of teams?

Answered: 1 week ago

Question

ethical hacking report

Answered: 1 week ago