Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

in 2021, aurora received a $25,000 bonus computed as a percentage of profits. in 2022, aurora's employer determined that the 2021 profits had been incorrectly computed, and aurora had to refund the $8,000 in 2022. assume that aurora was in the 35% tax bracket in 2021 but in the 12% bracket in 2022.
a. In 2021, how much is Aurora required to include in income?
b. In 2022, what is the amount of the deduction Aurora can claim? What is the reduction in taxes for 2020 as a result of the deduction?

Sagot :

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.