Amy is a calendar year taxpayer reporting on the cash basis. Please indicate how she should...
Amy is a calendar year taxpayer reporting on the cash basis. Please indicate how she should treat the following items for 2019.
A. She makes a deductible contribution to an IRA on April 15, 2020.
B. She has made an election to accrue the increase in value of savings bonds even though the increase is not received in cash.
C. She prepays half a year of interest in advance on her mortgage on the last day of 2019.
D. She pays all her outstanding invoices for standard business expenses in the last week of December.
E. She sends out a big bill to a customer on January 1, 2020, even though she did all of the work in December of 2019.
Homework Answers
Add Answer to:
Amy is a calendar year taxpayer reporting on the cash basis.
Please indicate how she should...
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...
Jordan is a calendar year, cash basis taxpayer. He is single, age 67, not blind, and...
Jordan is a calendar year, cash basis taxpayer. He is single, age 67, not blind, and cannot be claimed as a dependent by anyone else. Based on the following information, what is his taxable income for 2019? Wages from part-time employment $25,000 Holiday bonus paid in Bitcoin $500 Distribution from a traditional IRA $12,000 Interest on savings account $200 Inheritance received upon death of brother $2,500 Total charitable contributions $5,000 Total state income taxes paid $6,000
Theresa; a calendar year, cash basis taxpayer, had the following transactions during 2019: On March 31,...
Theresa; a calendar year, cash basis taxpayer, had the following transactions during 2019: On March 31, 2019, she sold a corporate bond for $9,800. She purchased the bond on July 1, 2014 for $10,000. The sales price of $9,800 included $200 of accrued interest. On January 1, 2019, she began receiving payments from an annuity contract she purchased for $100,000. Under the terms of the contract, she will receive $500 per month for her life. The IRś table indicated her...
18-20 True or false ...1 AT&T X 6:28 PM CONT 4007 ... 249% û nor ued...
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...
Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late...
Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $28,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $28,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 40 percent this year and next year, and that she can earn an after-tax rate of return of 11 percent on her investments. o. What is...
Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments...
Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2019, for a total of $3,200. Tungsten filed its 2019 tax return in 2020 and the return showed a tax liability $4,200. When it filed its tax return in 2020, Tungsten paid an additional $1,000 in Federal income taxes. How does the additional payment of $1,000 impact Tungsten's E & P? Increase by $1,000 in 2019. Increase by $1,000...
Exercise 6-26 (LO. 2) Shanna, a calendar year and cash basis taxpayer, rents property to be...
Exercise 6-26 (LO. 2) Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays $8,400 rent on April 1, 2019 for the 12 months ending March 31, 2020. Do not round any division. a. How much is Shanna's deduction for rent expense in 2019? $ 0 X b. Assume the same facts, except that the $8,400 is for 24 months' rent ending March 31,...
Emily is a cash-basis taxpayer, and she was an especially productive salesperson last year. In December...
Emily is a cash-basis taxpayer, and she was an especially productive salesperson last year. In December of last year her supervisor told Emily she had earned a $5,000 bonus. However, Emily received the bonus check after year-end. Identify the principle that will determine when Emily is taxed on the bonus. A. ASSIGNMENT OF INCOME B. CONSTRUCTIVE RECEIPT C. RETURN OF CAPITAL PRINCIPLE D. WHEREWITHAL TO PAY E. ALL OF THESE CHOICES ARE CORRECT
7) A cash-basis taxpayer must always include checks in income in the year received. True or...
7) A cash-basis taxpayer must always include checks in income in the year received. True or False 18) A sale may be reported on the installment method even though no payments are received in the year of sale. True or False 19) Sasha owned an apartment building, but she retained a real estate agent to manage the building and collect rents. Following his usual practice, the agent collected the December 2019 rents and mailed them to Sasha. Sasha did not...
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...
Theresa; a calendar year, cash basis taxpayer, had the following transactions during 2019: On March 31, 2019, she sold a corporate bond for $9,800. She purchased the bond on July 1, 2014 for $10,000. The sales price of $9,800 included $200 of accrued interest. On January 1, 2019, she began receiving payments from an annuity contract she purchased for $100,000. Under the terms of the contract, she will receive $500 per month for her life. The IRś table indicated her...
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...
Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $28,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $28,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 40 percent this year and next year, and that she can earn an after-tax rate of return of 11 percent on her investments. o. What is...
Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2019, for a total of $3,200. Tungsten filed its 2019 tax return in 2020 and the return showed a tax liability $4,200. When it filed its tax return in 2020, Tungsten paid an additional $1,000 in Federal income taxes. How does the additional payment of $1,000 impact Tungsten's E & P? Increase by $1,000 in 2019. Increase by $1,000...
Exercise 6-26 (LO. 2) Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays $8,400 rent on April 1, 2019 for the 12 months ending March 31, 2020. Do not round any division. a. How much is Shanna's deduction for rent expense in 2019? $ 0 X b. Assume the same facts, except that the $8,400 is for 24 months' rent ending March 31,...
Most questions answered within 3 hours.
-
Plantinga argues for the view that there is no solution to the
problem of moral evil....
asked 12 seconds ago -
For this Discussion, you examine a case study of
hearing-impaired children who developed their own language...
asked 4 minutes ago -
A solution is prepared by dissolving 11.60 g of a mixture of
sodium carbonate and sodium...
asked 2 minutes ago -
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 3 minutes ago -
You could argue that even though Rockefeller clearly had
enormous market power (90% of the market)...
asked 4 minutes ago -
1. Mini Case Study: Suppose that, in the future, most jobs will
be bid upon by...
asked 4 minutes ago -
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 11 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 22 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 42 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 49 minutes ago -
. 0.67 g of Ag is deposited electrolytically from
AgNO3 after a certain period of time...
asked 50 minutes ago -
assuming that the boric acid, h3po3 present at the end of the
borax tritation has a...
asked 50 minutes ago