The cancellation is not a gift, and Sam is bankrupt. Which of the following statements is correct concerning the impact of this transaction? (Points : 5) Both Bob and Sam recognize $8,000 of taxable income. Bob recognizes $8,000 of taxable income. Sam recognizes $8,000 of taxable income.
During the current year, she rented it for $1,500 for 48 days, and lived in it for 12 days. How would any expenses be accounted for? Question : (TCO 3) During the year, Rick had the following insured personal casualty losses (arising from one casualty). Rick also had $18,000 AGI for the year. Question : (TCO 3) John had adjusted gross income of $60,000.
Assume Ken’s modified adjusted gross income for purposes of the bond interest exclusion and for determining the taxability of his Social Security benefits is $70,000 and that Ken files as a single taxpayer. Determine Ken’s 2009 gross income. Solution: Ken’s Gross Income for 2009 is $58,000 Description | Amount | a. Rare gambling winnings | $1,200 | b. Income from sale of stock | $1,000 | c. Income gain from annuity | $14,500 | d. Social Security | $11,050 | f. Scholarship | $200 | h. State taxes refund | $50 | i.
Ms. Thomas was unfortunately audited in 2008 by the Internal Revenue Service, and they found that these deductions were disallowed. Ms. Thomas requested to know if the IRS is correct or if there is a way to fight the ruling. While these expenses are qualified under IRC 162, as it is “an ordinary and necessary expense that was paid or incurred during the taxable year in carrying on a trade or business.” The United States Supreme Court held that “ to be engaged in a trade or business, the taxpayer must be involved in the activity with continuity and regularity and that the taxpayer’s primary purpose for engaging in the activity must be for income or profit; a sporadic activity, a hobby, or an amusement does not qualify.” Under code 162 and the Supreme courts definition of an expense and a business, the expenses that Ms. Thomas incurred are deductible by the Violet Corporation. Because Ms. Thomas chose not to submit them for reimbursement, she is not eligible to deduct them personally. In the Case of Robert O. and Rita R. Eder v. Commissioner, U.S. Tax Court, CCH Dec. 38,118(M), T.C.
It also had accounts payables of $51,369, short-term notes payables of $11,417, and accrued taxes of $6,145. The net working capital of the firm is None of these $68,931 $63,510 $69,655 Multiple Choice Question 81 Which of the following best represents cash flows to investors? Net income, minus dividends paid to preferred stockholders. Earnings before interest and taxes times 1 minus the firm’s tax rate. Cash flow from operating activity, plus cash flow generated from net working
| Question: | (TCO 1) In a situation where the investor exercises significant influence over the investee, which of the following entries is not actually posted to the books of the investor? 1) Debit to the Investment account and a Credit to the Equity in Investee Income account. 2) Debit to Cash (for dividends received from the investee) and a Credit to Dividend Revenue. 3) Debit to Cash (for dividends received from the investee) and a Credit to the Investment account. | | Your Answer: | | | Entries 1 and 2 | | INCORRECT | | | Entries 2 and 3 | | | | | Entry 1 only | | | | | Entry 2 only | | CORRECT ANSWER | | | Entry 3 only | | | | | | Points Received: | 0 of 2 | | Comments: | | 4.
Although Wendy mailed the check on December 30, the funds were not made readily available to Larry until January 2. For this reason, Larry will not include the rental amount in his gross income until the next year. The payment was due to Larry on December 31, but he had no way of knowing when the money was readily available or mailed by Wendy, therefore, he cannot include that amount until he receives the check. Alternative B FACTS Both Larry and Wendy are calendar-year, cash method taxpayers. The lease requires an annual rental of $2,000, due in arrears on December 31.
A. $1,320 B. $1,270 C. $320 D. $2,320 5. A company purchased inventory for $800 per unit. The inventory was marked up to sell for $1,000 per unit.
Line 17—Disposition of exercised the option is not taxable for the excess, if any, of: Property the regular tax. His regular tax basis in 1. The fair market value of the stock the stock at the end of 2009 is $20,000. Your AMT gain or loss from the For the AMT, however, Ash must acquired through exercise of the option disposition of property may be different include the $180,000 as an adjustment (determined without regard to any lapse from your gain or loss for the regular on his 2009 Form 6251. His AMT basis restriction) when your rights in the tax.
Neither Moore nor MBM appeared at the sale or took steps there after to redeem the property. On August 16, 1979, MBM came to know about the tax sale. By then the redemption period had run and Moore still owed appellant $8,237.19. • In November 1979, Adams filed a suit in state court seeking to quiet title to the property, but in opposition to Adam’s motion MBM contended that it had not received enough adequate notice of the pending tax sale and the opportunity to redeem the