Homework Answers
For tax purposes any money received as advance rent shall be taxable in the year of receipt regardless of period covered or method of accounting used.
Hence XYZ corp must include the entire $24,000 as part of gross income in 2019.
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Question 21 0.2 pts XYZ Corp., an accrual-method 'p., an accrual-method taxpayer, owns a rental building....
XYZ Corp., an accrual method taxpayer, owns a rental building. Mr. King, an individual, entered into...
XYZ Corp., an accrual method taxpayer, owns a rental building. Mr. King, an individual, entered into a two-year lease to rent the building from XYZ Corp. at a rate of $1,000/month. The lease starts on December 1, 2019, and runs through Nov. 30, 2021. On December 1, 2019, Mr. King prepaid his rent for the entire lease ($24,000). For book purposes, XYZ Corp. will not recognize the rental revenue until it is earned ($1,000 in 2019, $12,000 in 2020 and...
XYZ Corp., an accrual-method taxpayer, owns a rental building. Mr. King, an individual, entered into a...
XYZ Corp., an accrual-method taxpayer, owns a rental building. Mr. King, an individual, entered into a two-year lease to rent the building from XYZ Corp. at a rate of $1,000/month. The lease starts on December 1, 2019 and runs through Nov. 30, 2021. On December 1, 2019, Mr. King prepaid his rent for the entire lease ($24,000). For book purposes, XYZ Corp. will not recognize the rental revenue until it is earned ($1,000 in 2019, $12,000 in 2020 and $11,000...
Question 18 0.2 pts Joe's Cross Fit, an accrual-method taxpayer, provides personal training services. On October...
Question 18 0.2 pts Joe's Cross Fit, an accrual-method taxpayer, provides personal training services. On October 30, 2019, Barbie pays Joe's Cross Fit $2,400 cash for 24 months of personal training services ($100/month). Barbie's training sessions beginning on November 1, 2019. For book purposes, Joe's Cross Fit will recognize $200 in income in 2019, $1,200 in 2020, and $1,000 in 2021. For tax purposes, how much of the $2,400 must Joe's Cross Fit include in gross income in 2019 if...
On Dec. 15, 2019, Julie's Tax Prep, a cash-method taxpayer, prepaid $4,000 worth of deductible interest...
On Dec. 15, 2019, Julie's Tax Prep, a cash-method taxpayer, prepaid $4,000 worth of deductible interest on a business loan. The interest won't accrue until January 2020. Julie's Tax Prep will be displaying for the first time at a trade show in July 2020. On Dec. 16, 2019, Julie's prepaid the $8,000 trade show booth rental expense. The payment isn't due until May 2020, and use of the booth will occur in July 2020. In addition, On Dec. 28, 2019,...
ncorrect Question 17 0/0.35 pts Star Corp., an accrual-method C corporation, incurred the following expenses in...
ncorrect Question 17 0/0.35 pts Star Corp., an accrual-method C corporation, incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise): Office rent: $50,000 CEO compensation: $1,500,000 Salary paid to janitor: $250,000 Business meals: $60,000 (100% of the amount paid) Client entertainment: $100,000 (100% of the amount paid) Traffic fines: $5,000 Advertising: $70,000 Taxes & licenses (state, local & payroll): $30,000 Life insurance policy on CEO - premiums: $12,000 Average office rents...
QUESTION 1 Tom, age 13, is claimed as a dependent by his parents. Tom has unearned...
QUESTION 1 Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Tom’s 2019 income tax liability? a. None of these b. $260 c. $370 d. $0 e. $459 QUESTION 2 The 3.8 percent ACA Medicare tax does not apply to: a. Wages b. Interest c. Capital gains...
Question 18 0.2 pts Joe's Cross Fit, an accrual-method taxpayer, provides personal training services. On October 30, 2019, Barbie pays Joe's Cross Fit $2,400 cash for 24 months of personal training services ($100/month). Barbie's training sessions beginning on November 1, 2019. For book purposes, Joe's Cross Fit will recognize $200 in income in 2019, $1,200 in 2020, and $1,000 in 2021. For tax purposes, how much of the $2,400 must Joe's Cross Fit include in gross income in 2019 if...
On Dec. 15, 2019, Julie's Tax Prep, a cash-method taxpayer, prepaid $4,000 worth of deductible interest on a business loan. The interest won't accrue until January 2020. Julie's Tax Prep will be displaying for the first time at a trade show in July 2020. On Dec. 16, 2019, Julie's prepaid the $8,000 trade show booth rental expense. The payment isn't due until May 2020, and use of the booth will occur in July 2020. In addition, On Dec. 28, 2019,...
ncorrect Question 17 0/0.35 pts Star Corp., an accrual-method C corporation, incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise): Office rent: $50,000 CEO compensation: $1,500,000 Salary paid to janitor: $250,000 Business meals: $60,000 (100% of the amount paid) Client entertainment: $100,000 (100% of the amount paid) Traffic fines: $5,000 Advertising: $70,000 Taxes & licenses (state, local & payroll): $30,000 Life insurance policy on CEO - premiums: $12,000 Average office rents...
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