Homework Answers
Solution:
Cash Xerxes is a cash basis taxpayer, therefore revenue is taxable when cash is collected. In the present case, cash is collected on January 3, 2020, therefore revenue is taxable for Xerxes in year 2020.
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1 Xerxes is a self-employed consultant and cash basis taxpayer. Xerxes performed some services for a...
TUULI (LU. 2, 3) Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a...
TUULI (LU. 2, 3) Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Troy is a full-time employee of the corporation and receives a salary of $60,000 per year. He also receives a bonus equal to 10% of all collections from clients he serviced during the year (which he receives in January of the following year). Determine the tax consequences of the following events to the corporation and to Troy: a. On December 31,...
GO CarCUSU Problem 4-41 (LO. 2, 3) Troy, a cash basis taxpayer, is employed by Eagle...
GO CarCUSU Problem 4-41 (LO. 2, 3) Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Troy is a full-time employee of the corporation and receives a salary of $60,000 per year. He also receives a bonus equal to 10% of all collections from clients he serviced during the yea (which he receives in January of the following year). Determine the tax consequences of the following events to the corporation and to Troy: a....
31. Arnie is a self-employed handyman. During the current year, customers pay him $10,000 in cash...
31. Arnie is a self-employed handyman. During the current year, customers pay him $10,000 in cash for his services. Arnie gives the $10,000 to his daughter, Ariel, who uses it to pay college expenses. Is Arnie or Ariel taxed on the $10,000? Explain. 33. For each of the following situations, determine the proper year for recog- nition of the income or deduction if the taxpayer is (1) a cash basis taxpayer and (2) an accrual basis taxpayer: Tindle Corporation purchases...
Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2018 i...
Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2018 in each of the following independent cases: a. A taxpayer completes $700 of accounting services in December 2018 for a client who pays for the accounting b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2018, she rents a c. Same facts as (b) except that the computer is returned on January 5, 2019. work in...
Stella is a single taxpayer and operates a self-employed business that provides pet-sitting services. The business is...
Stella is a single taxpayer and operates a self-employed
business that provides pet-sitting services. The
business is considered a sole proprietorship for income tax
purposes and represents Stella's only source of income. In 2018,
the standard deduction amount was greater than Stella's total
itemized deductions. Stella does not have any available tax credits
nor did she make any estimated tax payments for her 2018 tax
return.
Stella reports her income and expenses from the business using
the cash method. Stella's automobile was...
• Austin works as a self-employed ride share driver. –– Austin is a cash-basis taxpayer who...
• Austin works as a self-employed ride share driver. –– Austin is a cash-basis taxpayer who materially participates in the operation of his business. He did not make any payments that would require him to file Form 1099. Austin uses business code 485990. • He received Form 1099-MISC and a Form 1099-K from the ride share company. He had an additional $3,027 in cash tip income from individual customers NOT included on the Forms 1099. • Austin provided a statement...
Question 1 Todd is a cash-basis taxpayer. Daren Corporation made the following payments to or on...
Question 1 Todd is a cash-basis taxpayer. Daren Corporation made the following payments to or on behalf of Todd during 2019. Note received in lieu of bonus (Fair market value $3,000, no payments made in 2016) $5,000 Advance commissions for services to be performed in the future 1,000 Group-term life insurance premium paid by Daren Corporation on insurance coverage of $50,000 100 What amount should Todd report as income in 2019? 1) $6,100 2)...
Include procedure 1. Brenda is a cash basis taxpayer with the following trans actions during her...
Include procedure
1. Brenda is a cash basis taxpayer with the following trans actions during her calendar tax year Cash basis revenue Cash basis expenses, except rent Rent expense (paid on December 1) for use of a building for 6 months $54,000 25,000 12.000 What is the amount of Brenda's taxable income from her business for this tax year? $17,000 $23,000 $25,000 $27,000 None of the above. The answer is, A. В. C. D. E. 2. Ana is acalendaryear taxpayer...
ABC Services, Inc. is the company you started on December 1, 2019. The following transactions occurred...
ABC Services, Inc. is the company you started on December 1, 2019. The following transactions occurred during the month of December 2019: 1 . The business was started with a $10,000 capital investment from the owner and sole shareholder on December l, 2019. Additional business funding of $10,000 was obtained from a bank 'loan the same day. (90 day note) 2. Rent of $6,000 for the first 3 months was required which included rent of $2,000 for the month of...
Question 3 O out of 2 points Ryan is self-employed. This year Ryan used his personal...
Question 3 O out of 2 points Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,400 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 12,000 miles (combination of business and personal travel). Ryan can provide written documentation of the business purpose for trips totaling 3,000 miles. If...
TUULI (LU. 2, 3) Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Troy is a full-time employee of the corporation and receives a salary of $60,000 per year. He also receives a bonus equal to 10% of all collections from clients he serviced during the year (which he receives in January of the following year). Determine the tax consequences of the following events to the corporation and to Troy: a. On December 31,...
GO CarCUSU Problem 4-41 (LO. 2, 3) Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Troy is a full-time employee of the corporation and receives a salary of $60,000 per year. He also receives a bonus equal to 10% of all collections from clients he serviced during the yea (which he receives in January of the following year). Determine the tax consequences of the following events to the corporation and to Troy: a....
Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2018 in each of the following independent cases: a. A taxpayer completes $700 of accounting services in December 2018 for a client who pays for the accounting b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2018, she rents a c. Same facts as (b) except that the computer is returned on January 5, 2019. work in...
Stella is a single taxpayer and operates a self-employed
business that provides pet-sitting services. The
business is considered a sole proprietorship for income tax
purposes and represents Stella's only source of income. In 2018,
the standard deduction amount was greater than Stella's total
itemized deductions. Stella does not have any available tax credits
nor did she make any estimated tax payments for her 2018 tax
return.
Stella reports her income and expenses from the business using
the cash method. Stella's automobile was...
Include procedure
1. Brenda is a cash basis taxpayer with the following trans actions during her calendar tax year Cash basis revenue Cash basis expenses, except rent Rent expense (paid on December 1) for use of a building for 6 months $54,000 25,000 12.000 What is the amount of Brenda's taxable income from her business for this tax year? $17,000 $23,000 $25,000 $27,000 None of the above. The answer is, A. В. C. D. E. 2. Ana is acalendaryear taxpayer...
Question 3 O out of 2 points Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,400 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,000. During the year, he drove his car a total of 12,000 miles (combination of business and personal travel). Ryan can provide written documentation of the business purpose for trips totaling 3,000 miles. If...
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