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3 years ago

Cassie is preparing her federal income tax return. Which of the following items should be excluded from Cassie's gross income?

Business

1 answer:

Masja [62]3 years ago

8 0

Answer:$100,000 in cash received by Cassie when her grandmother died.

Explanation: In preparing federal income tax return, there are some income that are excepted from tax and they include:

1. Any payment received as an inheritance

2. Cash gift for the purchase of a property

3. Income received as compensation for loss.

4. Income earned outside the taxing jurisdiction.

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On July 1, 1992, York Co. purchased as a held-to-maturity investment $1,000,000 of Park, Inc.'s 8% bonds for $946,000, including

professor190 [17]

Answer:

Park Bonds 1,000,000

Discount on bonds (79,400)

Interest receivable 80,000

Carrying value 1,000,600

Explanation:

Investment on Park Bonds 1,000,000

interest receivable 40,000

cash 946,000

discount on Park bonds 94,000

Carring value at December 31th 1992

946,000 x 10% = 94,600 interest revenue

Cash proceeds 1,000,000 x 0.08 = 80,000 interest receivable

Discount on Bonds 14,600

94,000 - 14,600 = 79,400

94,600 interest revenue

(40,000) accrued interest

54,600 gains for the period

Park Bonds 1,000,000

Discount on bonds (79,400)

Interest receivable 80,000

Carrying value 1,000,600

5 0

4 years ago

Sheffield Corp. determines that 53000 pounds of direct materials are needed for production in July. There are 3100 pounds of dir

zvonat [6]

Answer:

Budgeted total cost of Direct Material purchases ($) =$ 157,800

Explanation:

<em>Raw material purchase budget is determined by adjusting the raw material usage budget for opening and closing inventory of materials. </em>

Purchase budget = usage budgeted + closing inventory - Opening inventory

Material purchase budget = 53,000 + 2,700 - 3,100= 52,600 pounds

Note the closing inventory represents the stock of materials needed to be kept, hence it will increase the purchase budget. So we added.

On the other hand hands, the opening inventory represented what already existed , hence we subtracted it as it will reduce what will be required.

Material purchase budget ($) = purchase budget in quantity × standard price per quantity

Material purchase budget = 52,600 × $3 = $ 157,800

Budgeted total cost of Direct Material purchases ($) =$ 157,800

8 0

4 years ago

Stiner has chosen to accrue the liability for compensated absences at the rates of pay in effect when the compensated time is ea

marshall27 [118]

Answer:

True

Explanation:

A compensated absence is employee time off with pay, which can arise in such situations as sick leave, holidays, vacations, and jury duty. To account for compensated absences, it is not necessary to separately recognize them when they are earned and used within the same period, since it is typically rolled into the general compensation expense. However, they must be charged to expense and recorded as a liability when they are earned and their use is deferred to a later period.

An employer should accrue a liability for compensated absences payable to employees for their future absences, but only if all of the following conditions are met:

• The payment obligation for future absences is based on employee services already rendered.

• The amount of the obligation can be reasonably estimated.

• Payment is probable.

• The obligation is for employee rights that vest or accumulate.

5 0

3 years ago

You have been pricing an MP3 player in several stores. Three stores have the identical price of $300. Each store charges 24 perc

Valentin [98]

Answer:

a. $5

b. $4

c. $6

Explanation:

a. store A?

Beginning balance = $300

Ending balance = $300 - $100 = $200

Average balance = ($300 + $200) ÷ 2 = $250

Monthly APR = 24% ÷ 12 = 2%

June finance charge = Average balance × Monthly APR = $250 × 2% = $5

b. store B

June finance charge = (Beginning balance - Payments) × Monthly APR = ($300 - $100) × 2% = $4

c. store C?

June finance charge = Beginning balance × Monthly APR = $300 × 2% = $6

8 0

3 years ago

Alan runs a small manufacturing business. One day, a subordinate informed Alan about a problem in the production process because

Anton [14]

D. Resourcefulness; if you can pick more than one than also chose A. Confidence.

6 0

3 years ago

Read 2 more answers