A) Cash Basis- 280,000+12,000= $292,000
B) Accrual- 280,000-40,000+$60,000= $300,000
C) He should use the cash basis because he's never paying tax on uncollected money.
*She can't use cash basis because she has inventory
A) 1.5 mil.+$350,000-100,000= $1,450,000
Qualifying $55,000+12,000= $67,000*.16=$10,050 Non- Qualifying $25,000= 25,000*.35=$8,750
Tax liability zero. Imputed interest- materiality exception of $10,000; exception of $100,000 or less
Jody borrowed $25,000 from her controlled corporation for six months. She used the funds to pay her daughter's college funds. The corp. charged Jody 4% interest. Federal rate was 5%. Jody had $3,500 of investment income for the year. Does the imputed interest rule apply?
Yes. Jake had investment income greater than $1,000.
Accounts Receivable 1,000 - 2009
Bad Debt Expense 1,000 -2010
A/R 1,000 -2011
Acct. Recoveries 1,000
2010 marvin cash basis taxpayer, to a $2000 itemized deductions for state income taxes paid. This increased his itemized deductions to $1200 more than the standard. In 2011 Marvin got a $2100 refund. He was in the 15% bracket in 2010, but was in the 35% bracket in 2011. does imputed int. apply?
Determine Hazel's federal gross income for the year. Gain on sale of Augusta Bonds 800
interest on on savings bonds 400, interest on state income tax refund 200, Interst on augusta county bonds 700
Interest on county bonds- Excluded
Interst on statincome tax 800
Us gov. savings bond 400
Gain on sale 200
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