Business, 22.02.2021 19:10 alleshia2007

Each year, Tom and Cindy Bates (who file married-filing jointly) report itemized deductions of $10,000, including an annual $4,000 pledge payment to their church. Upon the advice of a friend, they do the following: In early January 2017, they pay their 2016 pledge; during 2017, they pay the 2017 pledge; and in late December 2017, they prepay their 2018 pledge. a. What are the Bateses trying to accomplish?
b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2017? Assume that the itemized deductions of $10,000 already included one year of the church pledge payments.
$
What will be the Bates' tax saving if their marginal tax bracket is 25% for all three years?
(Assume that the standard deduction amounts for 2017 and 2018 are the same.)
By concentrating their charitable contributions, their tax savings becomes $.
c. Complete a letter to Tom and Cindy Bates (8212 Bridle Court, Reston, VA 20194) summarizing your analysis.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:20, ktenz

Miller mfg. is analyzing a proposed project. the company expects to sell 8,000 units, plus or minus 2 percent. the expected variable cost per unit is $11 and the expected fixed costs are $287,000. the fixed and variable cost estimates are considered accurate within a plus or minus 5 percent range. the depreciation expense is $68,000. the tax rate is 32 percent. the sales price is estimated at $64 a unit, plus or minus 3 percent. what is the earnings before interest and taxes under the base case scenario?

Answers: 1

continue

Business, 21.06.2019 20:30, asalaslex133369

As a group is leaving, you ask them if they had a good experience at the restaurant. they mention that they had poor service and their food was cold. a. apologize and ask them to give the restaurant another chance in the future. you tell them that guests usually have a great experience here. b. apologize then ask for the server’s name and immediately notify the manager after they leave. c. apologize for the bad experience and ask them to wait as you call the manager to talk to them. d. apologize for the bad experience and encourage them to complete the customer service survey. this feedback will ensure other guests do not have the same experience.

Answers: 2

continue

Business, 21.06.2019 23:30, BrezzyGirl9148

Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience. type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.1 20.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.

Answers: 1

continue

Business, 22.06.2019 01:30, BaileyRyan8320

In the fall, jay thompson decided to live in a university dormitory. he signed a dorm contract under which he was obligated to pay the room rent for the full college year. one clause stated that if he moved out during the year, he could sell his dorm contract to another student who would move into the dormitory as his replacement. the dorm cost was $5000 for the two semesters, which jay had already paid a month after he moved into the dorm, he decided he would prefer to live in an apartment. that week, after some searching for a replacement to fulfill his dorm contract, jay had two offers. one student offered to move in immediately and to pay jay $300 per month for the eight remaining months of the school year. a second student offered to move in the second semester and pay $2500 to jay. jay estimates his food cost per month is $500 if he lives in the dorm and $450 if he lives in an apartment with three other students. his share of the apartment rent and utilities will be $404 per month. assume each semester is 4.5 months long. disregard the small differences in the timing of the disbursements or receipts. what is the cost of the cheapest alternative?

Answers: 1

continue

You know the right answer?

Each year, Tom and Cindy Bates (who file married-filing jointly) report itemized deductions of $10,0...