Miguel won $600 at Lucky Casino and $1,450 at Riverboat Casino. His losses for the year at Lucky Casino were $800, and his losses at Riverboat Casino were $1,000. He also spent $200 for lottery tickets without winning anything. How much can he deduct for gambling losses on Schedule A, Itemized Deductions

Answers

Answer 1

Based on Miguel's activities in the casinos, the amount that can be deducted is $2,000.

Gambling tax laws are such that one can set off their gambling losses against their wins. This means that one can deduct the lower amount between their winnings and their losses for the year.

Miguel's winnings:

= 600 + 1,450

= $2,050

Miguel's losses:

= 800 + 1,000 + 200

= $2,000

The amount he can deduct is therefore $2,000.

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Related Questions

a successful advertised campaign affects
A:supply of the advertised good
B:quantity supplied of the advertised good
C:demand for the advertised good
D:quantity demanded of the advertised good

Answers

Answer:

B the responsiveness of quantity demanded of a good due to a change in its price. 

Explanation:

B ...

Unlike perfectly competitive markets, health insurance and health care markets are characterized by asymmetric information in many forms. To see the consequences, consider the following scenario: The population is evenly divided between 2 types of people: healthy people and unhealthy people. Healthy people have expected health care costs of $1000 per year. Unhealthy people have expected health care costs of $5000 per year. Unhealthy people can become healthy by working out, eating healthier, and taking preventive care. Assume that the cost of becoming healthy in terms of time and effort is $2000 per year. These people live in a city with one employer who will hire anyone who is willing to work. This employer provides complete health care to all its employees; all health care costs are covered by the insurance.
1. Do the unhealthy employees have an incentive to become healthy?
a. Yes.
b. No.
c. Not enough information.
2. What would the new actuarially fair cost of insurance be at the original firm?
3. What is the actuarial fair cost of insurance for all the workers?

Answers

1.  No, unhealthy employees do not have an incentive to become healthy.

2. The new actuarially fair cost of insurance would be $5000 at the original firm.

3. The actuarial fair cost of insurance for all the workers would be $3000

1.

No,  unhealthy employees do not have an incentive to become healthy. This is due to the fact that the only employer in the city is giving jobs to everyone regardless of their health status. Besides, their health care cost is covered and managed by the employer by the insurance. Therefore, unhealthy employees do not have an incentive to become healthy.

2.

The new actuarially fair cost of insurance can be determined by taking the probability of healthy employees and unhealthy employees with their health costs.

However, provided that all healthy people worked for the new employee, it implies that the original firm comprise of only the unhealthy workers and the new actuarially fair cost of insurance can be computed as follows:

Actuarial Fair cost of insurance = Probability ( Healthy employee × cost of health) +  Probability (unhealthy employee × cost of health)

Actuarial Fair cost of insurance = (0 × $1000) + (1 × $5000)

Actuarial Fair cost of insurance = $5000

Therefore, the new actuarially fair cost of insurance would be $5000 at the original firm.

3.

The actuarial fair cost of insurance for all the workers refers to the total sum of required payoffs for both the healthy employees and unhealthy employees

Actuarial Fair cost of insurance = Probability ( Healthy employee × cost of health) +  Probability (unhealthy employee × cost of health)

Actuarial Fair cost of insurance = [tex]\mathbf{(\dfrac{1}{2} \times \$1000) + (\dfrac{1}{2} \times \$5000)}[/tex]

Actuarial Fair cost of insurance = $500 + $2500

Actuarial Fair cost of insurance = $3000

Therefore, the actuarial fair cost of insurance for all the workers would be $3000

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Kennedy, Inc. reported the following data: Net income $128,451 Depreciation expense 12,655 Loss on disposal of equipment (8,582) Gain on sale of building 20,190 Increase in accounts receivable 9,009 Decrease in accounts payable (3,174) Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, cash payments, or any negative adjustments. Kennedy, Inc. Statement of Cash Flow Cash flows from operating activities: $- Select - Adjustments to reconcile net income to net cash flow from operating activities: - Select - - Select - - Select - Changes in current operating assets and liabilities: - Select - - Select - Net cash flow from operating activitiesomPrepare the cash flows from operating activities section of the statement of cash flows using the indirect method. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.
Statement of Cash Flows (partial)
1 Cash flows from operating activities:
2
3 Adjustments to reconcile net income to net cash flow from operating activities:
4
5
6
7 Changes in current operating assets and liabilities:
8
9
10

Answers

Answer:

god help you

Explanation:

to long question, sumerize it Please

The language used in texting is acceptable in business writing. True or false

Answers

Answer: The answer is generally false.

A remotely located air sampling station can be powered by solar cells or by running an electric line to the site and using conventional power. Solar cells will cost $15,000 to install and will have a useful life of 4 years with no salvage value. Annual costs for inspection, cleaning, etc. are expected to be $1,500. A new power line will cost $13,000 to install, with power costs expected to be $1,200 per year. Since the air sampling project will end in 4 years, the salvage value of the line is considered to be zero. At an interest rate of 14% per year, which alternative should be selected on the basis of a future worth analysis?

Answers

Answer:

Since the total future worth of running an electric line of $19,353.42 is less than the total future worth of solar cells is $24,132.22, it will be cheaper to run an electric line than to use solar cells. So running an electric line should be the answer.

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