Question

18-20 True or false

...1 AT&T X 6:28 PM CONT 4007 ... 249% û nor ued to make 18 Employers with annual payroll tax liabilities of $1.000 or less withholdings to their employees 19. Employers sunt to payment of household employment mayrort thing form 1040 Schedule Hor induding the taxes of their domestic employees in their business Forms 91 and 940 20. A household employee has the right to require his employer to make withholdings for the payment of federal income taxes. IL MULTIPLE CHOICE QUESTIONS (40 POINTS) 1. Brenda is a cash basis taxpayer with the following transactions during her calendar tam year: Cashbasis revenue $54.000 Cash basis expenses, except rent 25.000 Rent expense paid on December 1) for use of a building for 6 months 12.000 What is the amount of Brenda's taxable income from her business for this tax year? C $17.000 $23.000 $25.000 $27.000 None of the above. The answer is 2. Ana is a calendar year taxpayer reporting on the cash basis. Please indicate which of the following income or expense items should not be included in her 2018 tax return On April 15 of 2019, she makes a deductible contribution to an IRA for 2018 She prepays half a year of interest in advance on her mortgage on December 31 2018 She pays all her outstanding invoices for standard business expenses in December 15, 2018 She receives payment from a customer on January 15, 2018 even though she did all the work in November of 2017 c. 3. Marcus, a cash basis sole proprietor, had the following receipts and disbursements for 2018 Gross receipts 560,000. Cost of sales 530,000, Other operating expenses 56,000 and Personal expenses 5600. For 2018, what amount should Marcus report as net earnings from self employment? 8 $30,000 $24.00 $24.000 521.00 None of the above. The answer is 0 E 4. Kate is an acerbasis, calendar year taxpayer. On November 1, 201R e ased out a building for $4,000 a month. On that day Kate received an advance payment from his tenant for months of rent a total of $24,000 $4,000 each for 6 months). How much income must Kate indude on her 2018 tax retum because of this transaction? A $4,000