Question

QUESTION 30 The TV Ca b l avance (1700) in December this year the company collected the following amoun e a by the m ch month by the year 10 year or wo years January next year service January. Decent and cores) Services .com The income from the show that must be ponedas e income for this years $55 000 on $71.000 $16.000 4527 000 None of the above QUESTION 39 Damy a cash bassa ve 1000 shares of Capper Company common stock to his daughter on September 29 this year Casper Company is a publicly held company that has declared a $100 per share dividend on September 30th every year for the last 20 years Just as Darryl had expected. Copper Company declared a $100 per share dividend on September 30th payable on October 15th, to stockholders of record as of October 10th The daughter received the $1,000 dividend on October 18, this year Darryl must recognize $750 of the dividend because he owed the stock for three fourths of the you The daughter must recoge the income because she owned the stock when the dividend was declwed and she received the $1,000 Darry must recognize the income of 51000 because he constructively received the $1,000 wrry must recognize the $1.000 dividend as his income because he knew the dividend would be paid e None of the above

Answer 1

The correct choice for Question 1 is $ 55,000.

Income received will be considered as current year income only if the service is provided is the same accounting period. this is a quality of conservatism and principle of realization. So we will not account for the income of 16,000 either party or fully since the services will be rendered for the same only after the end of December. Total reportable income is 44,000 + 11,000 = 55,000

Since no specific instruction was given, answered for the first question only as HOMEWORKLIB Q & A guidelines.