Homework Answers
Answer is option A
$760
Interest is deducted proportionately (ratably) and therefore interest of 4 months of this year is deductible – ($480/12) × 4 months = $160
12-month rule rule applies to insurance and thus the full amount of insurance is deductible.
Therefore,
Maximum deduction = $160 interest + $600 insurance = $760
Add Answer to:
Clyde operates a sole proprietorship using the cash method. This year Clyde made the following expenditures:...
Bill operates a proprietorship using the cash method of accounting, and this year he received the...
Bill operates a proprietorship using the cash method of accounting, and this year he received the follc . $160 in cash from a customer for services rendered this year . a promise from a customer to pay $188 for services rendered this year tickets to a football game worth $220 as payment for services performed last year • a check for $182 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule...
Donna operates a talent agency as a sole proprietorship, and this year se incurred the following...
Donna operates a talent agency as a sole proprietorship, and this year se incurred the following expenses in operating her talent agency. What is the total deductible amount of these expenditures? $1000 dinner with a film producer where business was discussed. $500 lunch with sister Nancy where no business was discussed. $700 business dinner with a client but Donna forgot to keep any records.$900 tickets to the opera with a client for pleasure. A. $450, B.$900, C.$500,D.$1000,E.$950.
QUESTION 1 Marco; a calendar year, accrual basis taxpayer; operates a restaurant as a sole proprietorship....
QUESTION 1 Marco; a calendar year, accrual basis taxpayer; operates a restaurant as a sole proprietorship. His monthly electric bill for the restaurant runs from the 15th of the current month to the 14th of the subsequent month. He received his December electric bill for $650 on January 18, 2020. The bill included charges for December 15, 2019 through January 14, 2020. He accrued the entire bill in December 2019, which is how he has handled each monthly charge since...
n July of this year, Stephen started a proprietorship called ECR (which stands for electric car...
n July of this year, Stephen started a proprietorship called ECR (which stands for electric car repair). ECR uses the cash method of accounting and Stephen has produced the following financial information for this year. ECR collected $81,000 in cash for repairs completed during the year and an additional $3,200 in cash for repairs that will commence after year end. Customers owe ECR $14,300 for repairs completed this year, and while Stephen isn’t sure which bills will eventually be paid,...
Rebecca is a calendar-year taxpayer who operates a business
Required information [The following information applies to the questions displayed below.] Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of year 0. Indicate the amount of these payments that she may deduct in year 0 under both the cash method of accounting and the accrual method of accounting. (Leave no answers blank. Enter zero if applicable.) d. $3,500 for interest on a short-term bank loan relating to the period from September 1, year O, through...
Schedule C 2019 55. In July of this year, Stephen started a proprietorship called ECR (which...
Schedule C 2019
55. In July of this year, Stephen started a proprietorship called ECR (which stands for electric car repair). ECR uses the cash method of accounting and Stephen has produced the following financial information for this year: · ECR collected $81,000 in cash for repairs completed during the year and an additional $3,200 in cash for repairs that will commence after year-end. . Customers owe ECR $14,300 for repairs completed this year, and while Stephen isn't sure which...
In July of this year, Stephen started a proprietorship called ECR (which stands for electric car...
In July of this year, Stephen started a proprietorship called ECR (which stands for electric car repair). ECR uses the cash method of accounting and Stephen has produced the following financial information for this year: ECR collected $81,000 in cash for repairs completed during the year and an additional $3,200 in cash for repairs that will commence after year end. Customers owe ECR $14,300 for repairs completed this year, and while Stephen isn’t sure which bills will eventually be paid, he...
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late...
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $26,000 of legal services for a client. Hank typically requires his clients to pay his bills immediately upon receipt. Assume his marginal tax rate is 32 percent this year and will be 37 percent next year, and that he can earn an after-tax rate of return of 9 percent on his investments. a. What is the after-tax income if Hank sends...
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late...
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $22,000 of legal services for a client. Hank typically requires his clients to pay his bills immediately upon receipt. Assume his marginal tax rate is 32 percent this year and will be 35 percent next year, and that he can earn an after-tax rate of return of 12 percent on his Investments. Use Exhibit 3.1. a. What is the after-tax income...
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late...
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $20,000 bill from her accountant for consulting services related to her small business. Reese can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and will be 37 percent next year, and that she can earn an after-tax rate of return of 12 percent on her...
Bill operates a proprietorship using the cash method of accounting, and this year he received the follc . $160 in cash from a customer for services rendered this year . a promise from a customer to pay $188 for services rendered this year tickets to a football game worth $220 as payment for services performed last year • a check for $182 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule...
QUESTION 1 Marco; a calendar year, accrual basis taxpayer; operates a restaurant as a sole proprietorship. His monthly electric bill for the restaurant runs from the 15th of the current month to the 14th of the subsequent month. He received his December electric bill for $650 on January 18, 2020. The bill included charges for December 15, 2019 through January 14, 2020. He accrued the entire bill in December 2019, which is how he has handled each monthly charge since...
Schedule C 2019
55. In July of this year, Stephen started a proprietorship called ECR (which stands for electric car repair). ECR uses the cash method of accounting and Stephen has produced the following financial information for this year: · ECR collected $81,000 in cash for repairs completed during the year and an additional $3,200 in cash for repairs that will commence after year-end. . Customers owe ECR $14,300 for repairs completed this year, and while Stephen isn't sure which...
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $26,000 of legal services for a client. Hank typically requires his clients to pay his bills immediately upon receipt. Assume his marginal tax rate is 32 percent this year and will be 37 percent next year, and that he can earn an after-tax rate of return of 9 percent on his investments. a. What is the after-tax income if Hank sends...
Hank, a calendar-year taxpayer, uses the cash method of accounting for his sole proprietorship. In late December, he performed $22,000 of legal services for a client. Hank typically requires his clients to pay his bills immediately upon receipt. Assume his marginal tax rate is 32 percent this year and will be 35 percent next year, and that he can earn an after-tax rate of return of 12 percent on his Investments. Use Exhibit 3.1. a. What is the after-tax income...
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $20,000 bill from her accountant for consulting services related to her small business. Reese can pay the $20,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and will be 37 percent next year, and that she can earn an after-tax rate of return of 12 percent on her...
Most questions answered within 3 hours.
-
Required information
[The following information applies to the questions
displayed below.]
In 2019, Alliant Corporation acquired...
asked 6 minutes ago -
How much must I invest today if I want to withdraw 1/3 of my
original investment...
asked 2 hours ago -
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 3 hours ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 4 hours ago -
the
total pressure for a mixture of N2O4 and NO2 is 2.20 atm. If Kp=
7.10...
asked 4 hours ago -
Delaware Corp. prepared a master budget that included $22,385
for direct materials, $28,600 for direct labor,...
asked 4 hours ago -
For pesticide HCB (hexachlorobenzene), its logarithmic partition
coefficient log Kow is 5.6. What would be the...
asked 4 hours ago -
A chemist requires 0.422 mil Na2CO3 for a reaction. How many
grams does this correspond to?
asked 4 hours ago -
If the vapor pressure of carvone is approximately 9.4 torr at 99
°C, approximately how much...
asked 4 hours ago -
A juice bottling company is carrying out a test at 10%
significance that the mean population...
asked 4 hours ago -
What is the reflectivity (in percent) needed to keep water at a
temperature near its freezing...
asked 4 hours ago -
Suppose that the average surface temperature of Earth is 300K.
Assume this is uniform over its...
asked 4 hours ago