The issue is to determine how the reimbursement of expenses, in the amount of $25,000 should be treated for Federal income purposes. According to Code Sec. 162 (a), all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business shall be deducted including the following: compensation for personal services actually rendered, any travel expenses, and rental or other payments for the trade or business. The $25,000 would be considered as gross income from Code Sec. 61 (a) (1) as defined above as compensation for services, however, it may also be
The excess of nonbusiness capital losses over nonbusiness capital gains must be added to taxable income to compute the net operating loss of an individual. ANS: T PTS: 1 REF: p. 7-21 49. An individual taxpayer who does not itemize deductions uses the standard deduction to compute the excess of nonbusiness deductions over the sum of nonbusiness income and net nonbusiness capital gains for purposes of computing net operating loss. ANS: T PTS: 1 REF: p. 7-22 50. When a net operating loss is carried back to a non-loss year, the net operating loss is a miscellaneous itemized deduction.
c. What volume is required to provide a pretax profit of $100,000? A pretax profit of $200,000? d. Sketch out a CVP analysis graph depicting the base case situation. e. Now assume that the practice contracts with one HMO, and the plan proposes a 20 percent discount from charges. Redo questions a, b, c, and d under these conditions.
Card Sharps and Smart Slacks NAME OF GRIEVANTS: Alec Smart and Cardamone Sharp. DATE CAUSE OF GRIEVANCE: November 30, 2008 CONTRACTUAL PROVSIONS CITED: Articles 12 I. STATEMENT OF GRIEVANCE Antediluvian County has violated Article 12 of the Labor contract when it only paid Cardamone Sharp who was paid $300 and Alec Smart, who was paid $400. Despite the fact they have multiple degrees and Article 12 of the contract that states: Upon the attainment of any of the following degrees in an appropriate educational field of endeavor by a member of the bargaining unit, additional compensation shall be paid annually at the following rates: $200.00 Associate's Degree $300.00 Bachelor's Degree $400.00 Master's Degree Therefore the city has violated the terms of the contract by not paying Mr. Sharp and Mr. Smart their full educational benefit according to the agreement. RELIEF SOUGHT: The Union requests the County pay Mr. Sharp his additional $200.00 to equal a total of $500.00 per year and pay Mr. Smart his additional $300.00 to equal $700.00 per year to comply with the article 12 provision of the agreement.
years. | | The step-by-step calculation is: P | = | S(1 + rt)-1 | | | = | 400,000(1 + 0.0892 x 0.24657534...)-1 | | | = | 400,000 x 0.97847883... | | | = | $391,391.53 | Rounded as last step | b)You are correct. When the first bill matures at time 90 days, the investor purchases a second bill. We must find the purchase price of the second bill. This can be displayed on a time line: | | | | | $P | $400,000 | | | | | | 0 | 90 | 180 | 270 | | | | | | | | | P | = | price | = | unknown | | S | = | Maturity value | = | $400,000 | | r | = | Simple interest rate (decimal) | = | 9.16 | 100 | | = | 0.0916 | | t | = | Time period (years) | = | 90 | 365 | | = | 0.24657534... years.
For the regular tax, Ash has in the same year, the tax treatment adjustment related to (3) above. Then, a long-term capital gain of $50,000 under the regular tax and the AMT is refigure Form 4684, Form 4797, and ($60,000 minus his regular tax basis of the same, and no adjustment is Schedule D for the AMT, if applicable, $10,000). For the AMT, Ash has a required. by taking into account any adjustments long-term capital loss of $40,000 Increase your AMT basis in any you made this year or in previous years ($60,000 minus his AMT basis of stock acquired through the exercise of that affect your basis or otherwise result $100,000). an ISO by the amount of the in a different amount for the AMT.
Interpretation: The Quick ratio is computed by dividing cash plus accounts receivable by total current liabilities. Current liabilities are all the liabilities that fall due within one year. This ratio reveals the protection afforded short-term creditors in cash near-cash assets. It shows the number of liquid assets available to cover each dollar of current debt. Any time this ratio is as much as 1 to 1 (1.0) the business is said to be in a liquid condition.
The mathematical formula for I X(N+ 1 calculating the denominator is N 1). The numerator will be the number of payments remaining, including the present payment. Thus, the borrower would accrue 30/465 (or 6.45%) of the total interest in the first year, 29/465 (6.24%) in the second year, and so on until the 30th year, when 1/465 (.22%o) of the total interest would be accrued. See, e.g., SEN. COMM. PRINT, supra note 7, at 251 n.7 (example of Rule of 78s); H.R.
J. Premium offers outstanding- Current Liability K. Discount notes payable- Current Liability L. Employee payroll deductions unremitted- Current Liability M. Current maturities of long-term debts to be paid from current assets- Current Liability N. Cash dividends declared but unpaid- Current Liability O. Dividends in arrears on preferred stock- Footnote disclosure P. Loans from officers- Current Liability 13-2. Accounts and Notes Payable * The following are selected 2012 transactions of Darby Corporation. Sept. 1 | Purchased inventory from Orion Company on account for $50,000.
In February 2011, the case is settled, and Joe refunds $2,500 to the customer. When Joe prepares his 2010 tax return in April 2011, he will include only $1,500 of net revenues from that customer. Your Answer: False The claim of right doctrine requires the recipient of disputed funds to recognize the income. Joe will include the full $4,000 in his 2010 taxable income because he had full control over the funds. He will be allowed to take a deduction on his 2011 tax return for the $2,500 repaid the customer.