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lina2011 [118]
2 years ago
6

This year Riley files single and reports modified AGI of $76,000. Riley paid $1,200 of interest on a qualified education loan. W

hat amounts can Riley deduct for qualifying education interest?
Business
1 answer:
sleet_krkn [62]2 years ago
4 0

<u>Solution and Explanation:</u>

As per the income tax, if the income of a single taxpayer lies in the range of $65000 and $80000, the taxpayer is elgibile for a prtial deduction on his/her education on loan interest.

The partial interest deduction amount is calculated as follows:

Partial interest deduction allowed = \text { Interest expense } *(\$ 80000-\mathrm{AGI} / \$ 80000-\$ 65000)

=\$ 1200 *(\$ 80000-\mathrm{AGI} / \$ 80000-\$ 65000)

=\$ 1200 * \{(580000-\$ 76000 / \$ 80000-\$ 65000)}

=\$ 1200 * \$ 4000 / \$ 15000

= $320

Therefore, the allowed interest deduction in this case is $320.

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Ranada Company manufactures and sells sportswear products. Ranada uses activity-based costing to determine the cost of the custo
kramer

Answer:

Per unit customer costs = $4.5 per unit

Explanation:

Under activity based costing cost are allocated based on per activity rate.

Customer return processing activity rate = $45 per return

Shipping activity rate = $10 per shipment

for Product 1

Total cost of shipment and return will be as follows:

Shipment = 1,200 X $10 = $12,000

Returns = 150 X $10 = $1,500

Total = $12,000 + $1,500 = $13,500

Total units = 3,000

Per unit customer costs = $13,500/3,000 units = $4.5 per unit

4 0
2 years ago
It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive
Arlecino [84]

Answer:

It describes the problem of transaction costs and negotiation.

Explanation:

Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).

Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.

4 0
2 years ago
Fabian is proud of his slides and wants to print them out for his audience. However, he has 25 slides and an audience of 50. Wha
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2 years ago
Read 2 more answers
Where does the management accounting function fit into an organization's structure?
LUCKY_DIMON [66]

Management accounting is the process of measuring and analyzing financial and non-financial information that is relevant to the company.  This is an important part of the Controller’s function in an organization since the Controller directly reports to the chief financial officer. The report contains pieces of information which contributes in making strategic decisions to achieve the goal of the organization. 

6 0
2 years ago
Oriole Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cos
Fynjy0 [20]

Answer:

$1.2 per mile

Explanation:

Computation of the variable cost per mile using the high-low method

Using this formula

Variable cost per mile = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)

Let plug in the

Variable cost per mile= (14,721 - 13,503)/(8,510 - 7,495)

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