Should matteo work his car if the $400 he must pay to fixed

Assignment Help Taxation

Reference no: EM13905367

Matteo, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Matteo's employer called and offered him $500 in overtime pay if he would agree to work over the weekend. Matteo could get his car repaired over the weekend at Autofix for $400. If Matteo works over the weekend, he will have to pay the $400 to have his car repaired but he will earn $500. Assume Matteo pays tax at a flat 15 percent rate.

a) Strictly considering tax factors, should Matteo work or repair his car if the $400 he must pay to have his car fixed is not deductible?

b) Strictly considering tax factors, should Matteo work or repair his car if the $400 he must pay to have his car fixed is deductible for AGI?

Reference no: EM13905367

Questions Cloud

Who may claim a dependency exemption for francine : Assume Francine spends an equal number of days with her mother and her father and that Donna has AGI of $52,000 and Darren has AGI of $50,000. Who may claim a dependency exemption for Francine?

Are the smiths able to claim tim as a dependent : Assume the original facts except that Tim earned $10,000 and used all the funds for his own support. Are the Smiths able to claim Tim as a dependent?

Compute the current ratio and acid test ratio : Compute the current ratio and acid test ratio for each of the following separate cases.

Will stli prevail : STLI seeks to avoid payment of the employment tax based on the position that STLI reasonably believed that it properly treated the drivers as independent contractors relying on the FBWC decision and the opinion of its legal counsel at the time tha..

Should matteo work his car if the $400 he must pay to fixed : Strictly considering tax factors, should Matteo work or repair his car if the $400 he must pay to have his car fixed is not deductible?

Journalize the following merchandising transactions : Journalize the following merchandising transactions for Chilton Systems assuming it uses a perpetual inventory system.

Find the y-intercept of the line : Find the y-intercept of the line represented by the following equation. -2x + 2y = 16 and Write the equation of the line with slope -4 and y-intercept (0, -9)

Describe some ways in which taxes affect political process : Describe some ways in which taxes affect the political process in the United States. Courtney recently received a speeding ticket on her way to the university.

User Account

All Pages