V CH 06 0 Saved Help Save & Exit Submit 10 Penny, a full-time biochemist, loves stock car racing. To feed her passion, she bought a used dirt-track car and has started entering some local dirt-track races. The prize money is pretty small ($1,000 for the winner), but she really is not in it for the money, Penny reported the following income and expenses from her nights at the track Prize money $ 3,580 Expenses: Transportation from her home to the races 1,630 Depreciation on the dirt-track car 4,180 Entry fees 3,200 oil, gas, supplies, repairs for the dirt-track car 2,350 What are the tax effects of Penny's racing income and expenses assuming that the racing activity is a hobby for Penny? Merences Penny's racing income Penny's racing expense Gross income for tax CH06 Saved Help Save & Exit 11 Dan has AGI of $50,000 and paid the following taxes during this tax year. State income tax withholding $ 1,025 State income tax estimated payments 520 Federal income tax withholding 2,825 Social Security tax withheld from wages 1,720 State excise tax on liquor 310 Automobile license (based on the car's weight) 255 State sales tax paid 315 Calculate how much Dan can deduct for taxes as an itemized deduction this year. Print orences Deductible taxes H06 Saved Help Save & Exit Submit 2 Tim is a single, cash-method taxpayer with an AGI of $50,000. In April of this year, Tim paid $960 with his state income tax return for the previous year. During the year, Tim had $4750 of state income tax and $16,950 of federal income tax withheld from his salary. In addition, Tim made estimated payments of $1130 and $1,760 for state and federal income taxes, respectively. Finally, Tim expects to receive a refund of $435 for state income taxes when he files his state tax return for this year in April next year. What is the amount of taxes that Tim can deduct as an itemized deduction? Deductible