Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2023 in each of the following independent cases: Required: a. A taxpayer completes $750 of accounting services in December 2023 for a client who pays for the accounting work in January 2024. b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2023, she rents a computer for a $280 rental fee and receives a $700 deposit. The customer returns the computer and is refunded the deposit on December 20, 2023. c. Same facts as (b) except that the computer is returned on January 5, 2024. d. On December 18, 2023, a landlord rents an apartment for $655 per month and collects the first and last months' rent up front. It is customary that tenants apply the security deposit to their last month's rent upon moving out. e. An accountant agrees to perform $405 of tax services for an auto mechanic who has agreed to perform repairs on the car of the accountant's wife. The mechanic repairs the car in December 2023 and the accountant starts and completes the tax work in March 2024.

Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2023 in each of the following independent cases: Required: a. A taxpayer completes $750 of accounting services in December 2023 for a client who pays for the accounting work in January 2024. b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2023, she rents a computer for a $280 rental fee and receives a $700 deposit. The customer returns the computer and is refunded the deposit on December 20, 2023. c. Same facts as (b) except that the computer is returned on January 5, 2024. d. On December 18, 2023, a landlord rents an apartment for $655 per month and collects the first and last months' rent up front. It is customary that tenants apply the security deposit to their last month's rent upon moving out. e. An accountant agrees to perform $405 of tax services for an auto mechanic who has agreed to perform repairs on the car of the accountant's wife. The mechanic repairs the car in December 2023 and the accountant starts and completes the tax work in March 2024.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions

Section: Chapter Questions

Problem 30P

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