Problemthrough november tex has received gross income of, Ask an Expert

Accounting

Problem:

Through November, Tex has received gross income of $67,500. For December, Tex is considering whether to accept one more work engagement for the year. Engagement 1 will generate $7,030 of revenue at a cost of $3,850, which is deductible for AGI. In contrast, engagement 2 will generate $7,030 of revenue at a cost of $3,180, which is deductible as an itemized deduction. Tex files as a single taxpayer.

Required:

Question 1: Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has $5,820 of itemized deductions other than those generated by engagement 2.

Question 2: Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has $8,080 of itemized deductions other than those generated by engagement 2.

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91163919

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