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love history [14]
3 years ago
10

Freda is a cash basis taxpayer. In 2019, she negotiated her salary for 2020. Her employer offered to pay her $21,000 per month i

n 2020 for a total of $252,000. Freda countered that she would accept $10,000 each month for the 12 months in 2020 and the remaining $132,000 in January 2021. The employer accepted Freda’s terms for 2020 and 2021. a. Did Freda actually or constructively receive $252,000 in 2020? b. What could explain Freda’s willingness to spread her salary over a longer period of time? c. In December 2020, after Freda had earned the right to collect the $132,000 in 2020, the employer offered $133,000 to Freda at that time, rather than $132,00
Business
1 answer:
nataly862011 [7]3 years ago
4 0

Answer:

A. N0

B. She may likely bargain for the payments that was reason been that she expects the payments to be in a lower marginal tax bracket in 2021

C. NO

Explanation:

a. No .Based on the information given the amount of $252,000 was NOT constructively received in the year 2020 reason been that She has the amount of $132,000 which is a deferred income amount that

is not constructively received in 2019 and the reason why the amount was not received was because been under the main contract terms she did not have the sole right to receive the income in the year 2020.

b. Freda's willingness to spread her salary over a longer period of time may be due to the fact that She may likely bargain for the payments reason been that she expects the payments to be in a lower marginal tax bracket in the year 2021

c. Based on the information given she is NOT in constructive receipt of the income in the year 2020.

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Answer:

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3 years ago
Western Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed de
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Western Inc. purchases a machine for $70,000. This machine qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages- <u>the cash flow from disposal is $46720</u>

Explanation:

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Year 1: $70,000 &times; 0.2000 = $14,000

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<u>Book Value of machine </u>= $70,000 - $36,400 = $33,600

<u>Gain on disposal is</u> $50,000 - $33,600 = $16,400

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Vijay Company reports the following information regarding its production costs. Direct materials $ 10 per unit Direct labor $ 20
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Answer:

Unitary variable cost= $40

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Unitary variable cost= direct material + direct labor + manufacturing overhead= 10 + 20 + 10= $40

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