[The following information applies to the questions displayed below.] Erin is considering switching her business from the cash method to the accrual method at the beginning of next year. Determine the amount and timing of her $481 adjustment assuming the IRS grants Erin's request in the following alternative scenarios. b. At the end of this year, Erin's business reports $36,800 of accounts receivable and $13,500 of accounts payable that have not been recorded for tax purposes. Anewer ls not complete
Q: Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss…
A: First loss = 2011 Second loss = 1404 Third loss = 2812 Straight deductible = 384, which is the…
Q: Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation…
A: Income tax is the tax imposed by the government on the income earned by an individual or company.…
Q: qualitative answers should be written in full sentences with depth to your responses when needed.…
A: The answer is stated below: Note: Answering the first three subparts as there are multiple…
Q: [The following information applies to the questions displayed below.] Clyde is a cash-method…
A: Clyde is taxed on the $1,000 that comes below the constructive receipt doctrine Amount to be…
Q: On June 2, 2020, Sam's Auto Sales sold Jim a used car on account for $20,000. Sam's Auto Sales uses…
A: When an entity sells goods on credit, there may be chances of bad debt losses arising out of the…
Q: Jennifer uses the cash method. Which of the following transactions result in gross income in the…
A: If a business uses cash method, then the transaction is included in income only when it gets…
Q: Which of the following is not considered “constructive receipt” income in 2020? A. Andrew Mason was…
A: Correct option is B. Explanation:
Q: Discuss her eligibility whether she can deduct both membership fees from her assessable income!
A: Tax is the revenue for the government which is charged upon the income of the business or an…
Q: Ned Naïve operated several franchise stores for a large company, and, at the home office’s…
A: Reduced tax liability and a tax refund at zero or almost zero are the objectives. If you anticipate…
Q: d taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay…
A: Gross income refers to the sum value of money gained by an entity such as salaries, wages, business…
Q: ASLEY is in the business of purchasing accounts receivable from businesses at a discount and then…
A: Accounts receivable represents the revenue earned by the company but money for the same has not been…
Q: Circular 230, Subpart B
A: As per Circular 230, Subpart B, a practitioner must inform IRS any information regarding client.
Q: Stephanie began her consulting business this year, and on April 1 Stephanie received a $9,000…
A: Amount received for three year contract is:::9000$.. Amount of months=36 months ie 3 years...…
Q: Pat invites Tin to join him in his business. Tin agreed that the following adjustments are taken up…
A: Partnership is one of the agreement between two or more than two persons, in which they invest their…
Q: Unfortunately, Betty’s business was not profitable. She decided to sell the business and seek work…
A: Given, Advertisement expense = $22,000
Q: (The following information applies to the questions displayed below.] Lewis and Laurie are married…
A: Lewis and Laurie are married and jointly own home valued = at $265000 Recently paid off the mortgage…
Q: Lokalalo knows that not all their customers will pay so they take out insurance for that purpose.…
A: Following is the answer to the given question
Q: Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2021, at a…
A: a. Wesley's gain = $139,520, but due to section 121 exclusion, he doesn't need to recognize any gain…
Q: contrast, an individual depositing in a non-IRA account has to pay income taxes on the funds…
A: Savings Account is a deposit facility offered by commercial banks to their customer in which limited…
Q: In July of this year, Stephen started a proprietorship called ECR. ECR uses the cash method of…
A:
Q: Colbert operates a catering service on the accrual method. In November of year 1, Colbert received a…
A: Under accrual method of accounting income is recognise as and when earn not when actually received.…
Q: Compute the penalty described for the following taxpayers. If an amount is zero, enter "0". If…
A: As per IRS, if any assessee fails to pay taxes till due date, then late payment penalty called…
Q: On September 5, Wanda, a widow who occasionally teaches piano and organ in her home, purchased an…
A: Solution- (a) The first seller and the second buyer of the organ have perfected their contact.…
Q: Breanna Vail is a self-employed accountant who has one less-than-half-time employee. During 2019,…
A: Introduction Schedule C is tax form filed by sole proprietors, to show profit and loss from…
Q: This year William provided $4,200 of services to a large client on credit. Unfortunately, this…
A: Here in this question, we are required to answer what amount of deduction for bad debt can be…
Q: Bonnie receives salary income of $32,000, unemployment compensation of $4,400, and interest income…
A: Hello, I am only answering first question as per the policy and if you want other to be answered…
Q: 1. During the year, Moses won $5,500 from casino gambling. However, Moses was not so lucky when…
A: In this question, we will find out that how much should Moses report in his 1040 Form Sr. in 2021…
Q: Cynthia is an electrician, age 29, and single. • Cynthia has investment income and has a…
A: SOLUTION SHORT TERM CAPITAL GAIN IS A PROFIT REALIZED FROM SALE ,TRANSFER OR OTHER DISPOSITION OF…
Q: Seong Gi-hun started his cleaning services business on November 1, 2020, with a P240,000 investment…
A: solution Given On November 1 2020 Owners equity =P 240,000 Bank loan (liability ) =P…
Q: calculate the total penalties that Joan will be required to pay, assuming the failure to file was…
A: US Tax laws allows their resident to file their returns & pay taxes after 2 months of the due…
Q: Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2021, at a…
A: A recognized gain refers to the amount raised from the sale of investment or assets used in business…
Q: Jolene filed her tax return by its original due date but did not pay the $1,700 in taxes she owed…
A: When taxpayers fail to pay taxes on the due date of tax return that he will be liable to pay a tax…
Q: Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation…
A: Gross income is the amount paid before deduction of taxes or other deductions and is inclusive of…
Q: Selma operates a contractor's supply store. She maintains her books using the cash method. At the…
A: a. Selma's accrual basis gross receipts for 2021 = Cash receipts during 2021 - Cash collected from…
Q: Ginny is an accountant by trade, she paid $1,000 each year to join as CPA member. She also has a…
A: Tax: It is the liability imposed by government that arises on the income of individual corporation…
Q: Pat invites Tin to join him in his business. Tin agreed that the following adjustments are taken up…
A: The revaluation account is prepared to record changes in assets and liabilities before admission of…
Q: George's long-time client, Henrietta, brought in business records this year showing $40,000 of…
A: According to the Internal Revenue Service (IRS) there are some due diligence for the accuracy of the…
Q: epfer, Inc. is a calendar year-end, accrual method taxpayer. It provides financial services for…
A: Tax: Tax is a financial charge imposed by the county's government on the income of the person, and…
Q: 11. For 2020, Peggy received a form 1098-E from her federal student loan that showed that she paid…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: ! Required information [The following information applies to the questions displayed below.]…
A: As per IRS the short term loan invested in municipal bonds is not allowed as deduction.
Q: Yolanda is a cash basis taxpayer with the following transactions during the year: Cash…
A: Business income:The income that is realized from the result of business activity is referred to as…
Q: Vic, who was experiencing financial difficulties, was able to adjust his debts as follows: a. Vic…
A: SOLUTION- GROSS INCOME REPRESENTS THE TOTAL INCOME FROM ALL SOURCES ,INCLUDING RETURN , DISCOUNTS…
Q: During the current year, Harry, a self-employed accountant, travels from Kansas City to Miami for a…
A: A deduction is an out-of-pocket expense that can be deducted from taxable income to lower the amount…
Q: Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy…
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account…
Q: Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss…
A: Loss in January = 2889 Loss in May = 2605 Loss in December = 1003 Aggregate Deductible = 1084
Q: Stephanie began her consulting business this year, and on April 1 Stephanie received a $9,000…
A: Income refers to the sum of money earned or gained by an individual or an entity in the desired…
Q: During 2020, Jackie sent her brother Junnie $2,500 via a telegraphic transfer through El Banco…
A: Solution Given in the question During 2020, Jackie sent her brother Junnie $2,500 via a telegraphic…
Q: a. Wilson filed his individual tax return on the original due date, but failed to pay $270 in taxes…
A: A penalty is a fee levied by the IRS for failing to pay taxes by the yearly deadline or for failing…
3
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Joy incurs the following expenses in her business. When can she deduct the expenses if she uses the accrual method of accounting? the cash method? a. Joy rents an office building for 750 a month. Because of a cash flow problem, she is unable to pay the rent for November and December 2019. On January 5, 2019, Joy pays the 2,250 rent due for November, December, and January. b. Joy borrows 60,000 on a 1-year note on October 1, 2019. To get the loan, she has to prepay 6,200 in interest. c. Joy owes employees accrued wages totaling 20,000 as of December 31, 2019. The accrued wages are paid in the regular payroll on January 5, 2020. d. Joy purchases 2,400 worth of supplies from a local vendor. The supplies are delivered on January 29, 2019. They are fully used up on December 30, 2019. Because of unusual circumstances, a bill for the supplies arrives from the vendor on January 10, 2020, and is promptly paid. e. While at a trade convention, Joy purchases some pens and paperweights to send out as holiday gifts to her clients. She charges the 700 cost to her credit card in December 2019. She pays the credit card bill in January 2020.Required information [The following information applies to the questions displayed below.] In January of year 0, Justin paid $8,800 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. d. Instead of paying an insurance premium, Justin pays $8,800 to rent his business property from April 1 of year 0 throug March 31 of year 1. Deductible amount! Required information [The following information applies to the questions displayed below.] Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) d. Clyde picked up the check in December, but the check could not be cashed immediately because it was postdated January 10. Amount to be included in gross income
- ! Required information [The following information applies to the questions displayed below.] In January of year 0, Justin paid $5,400 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) a. The policy covers the business property from April 1 of year 0 through March 31 of year 1. Deductible amountIn January of year 0, Justin paid $9,400 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year 0 in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. a. The policy covers the business property from April 1 of year 0 through March 31 of year 1. b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. c. Justin pays $10,600 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2. Note: Do not round intermediate calculations. d. Instead of paying an insurance premium, Justin pays $9,400 to rent his business property from April 1 of year 0 through March 31 of year 1.In January of year 0, Justin paid $6,200 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) c. Justin pays $7,400 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2. (Do not round intermediate calculations.) Deductible amount
- In January of year 0, Justin paid $6,200 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) d. Instead of paying an insurance premium, Justin pays $6,200 to rent his business property from April 1 of year 0 through March 31 of year 1. Deductible amountIn January of year 0, Justin paid $6,200 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? (Leave no answers blank. Enter zero if applicable.) b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. Deductible amountClyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,450.Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Problem 5-53 Part-d (Algo) d. Clyde picked up the check in December, but the check could not be cashed immediately because it was postdated January 10. Amount to be included in gross income - ________
- Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,450.Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Problem 5-53 Part-c (Algo) c. Paylate Corporation mailed the check to Clyde before the end of the year (and it was delivered before year-end). Although Clyde expected the bonus payment, he decided not to collect his mail until after year-end. Amount to be included in gross income - ________Stephanie began her consulting business this year, and on April 1 Stephanie received a $9,000 payment for full payment on a three-year service contract (under the contract, Stephanie is obligated to provide advisory services for the next three years). Stephanie has elected to use the accrual method of accounting for her business. (Leave no answers blank. Enter zero if applicable.) a. What is the minimum amount of income Stephanie should recognize for tax purposes this year if she recognizes $2,250 of income for financial accounting purposes? Recognized income11. For 2020, Peggy received a form 1098-E from her federal student loan that showed that she paid $4,600 in interest on a qualified student loan. Her W-2 from her employer shows 79,750 in box 1 and $6,200 in box 2. If these are the only items of income and expense for 2020, what will be Peggy's 1040 show when she files her return using the single filing status? 12. Humphrey was very busy in 2021 and forgot to file his taxes or file an extension by April 15, 2021. When he got around to filing his tax return on June 28th, he found that he owed $1,727 in income tax. How much will Humphrey owe in penalties in addition to the $1,727 for his failure to file and pay on time?