Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Courtney is a licensed architect who works part time as an architectural consultant. Her professional activity code is 541310. Her major clients are real estate

  1. Courtney is a licensed architect who works part time as an architectural consultant. Her professional activity code is 541310. Her major clients are real estate developers (both residential and commercial) for whom she prepares structural designs and construction plans. She also advises on building code requirements regarding the renovation and remodeling of existing structures. Courtney does some of her work at client locations and the remainder in her office at home (see item 3 below).

    Courtney collected $72,000 in consulting fees during 2019. This total includes a $3,000 payment for work she performed in 2018 and does not include $5,000 she billed in December for work performed in late 2019. In addition, Courtney has a $6,400 unpaid invoice for work done in 2017. This client was convicted of arson in August 2016 and is now serving a 5-year sentence in a state prison. Courtney feels certain that she will never collect the $6,400 she is owed. Her business expenses for 2019 are as follows:

Drafting supplies

$4,800

Reproduction materials (e.g., molds, models, photos, blueprints, copies)

3,200

On-site work clothing (e.g., hip boots, safety glasses, safety helmet)

860

Professional license fee

400

Subscriptions to professional journals

250

Dues to professional organizations

240


In addition, Courtney drove the family Acura (purchased on June 7, 2018) 940 miles on her job assignments. She uses the standard mileage method to deduct business costs related to the Acura. During 2019, Courtney drove the car a total of 10,000 miles.

Step by Step Solution

3.42 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

Matthew B age 42 and Courtney S age 41 Mumford are married Matthew B age 42 and Courtney S age 41 Mumford are married and live at 11426 W Antelope Drive Sioux Falls SD 57107 Matthew is the manager for ... 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

Statistics For Managers Using Microsoft Excel

Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat

7th Edition

978-0133061819, 133061817, 978-0133130805

More Books

Students also viewed these Accounting questions