1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
love history [14]
2 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]2 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.

You might be interested in
A year ago, MC Hammer Company had inventory in Britain valued at 240,000 pounds. The exchange rate for dollars to pounds was 1£
lys-0071 [83]

Answer:

Gain= 132,000 - 120,000= 12,000 dollars

Explanation:

Giving the following information:

A year ago, MC Hammer Company had inventory in Britain valued at 240,000 pounds. The exchange rate for dollars to pounds was 1£ = 2 U.S. dollars. This year the exchange rate is 1£ = 1.82 U.S. dollars. The inventory in Britain is still valued at 240,000 pounds.

Year 1= 1/2= 0.5 exchange rate

Inventory year 1= 240,000*0.5= 120,000 dollars

Year 2= 1/1.82= 0.55 exchange rate

Inventory year 2= 120,000*0.55= 132,000 dollars

5 0
3 years ago
Sage Hill Inc. Issues $254,000, 10-year, 10% bonds at 97. Prepare the journal entry to record the sale of these bonds on March 1
Mamont248 [21]

To record final annual interest and bond repayment:

2017

Mar 1

Bonds interest expense       $25,400

Bonds payable                      $254,000

          Cash                                                  $279,000

On March 1, 1997, the date of issuance, the entry is:

1997

Mar 1

Cash                                        $254,000

          Bonds payable                                  $254,000

On each March 1 for 10 years, beginning March 1, 1997 (ending March 1, 2017), the entry would be (Remember, calculate interest as Principal x Interest Rate x Time)

Mar 1

Bond Interest Expense ($100,000 x 12% x 1)          $25,400

          Cash                                                                                  $25,400


8 0
3 years ago
What is the difference between classical economics and behavioral economics?
Nostrana [21]

3. Classical economics assumes people are rational and logical while behavioral economics adds psychology to the mix.

A major theory in classical economics is that human beings are rational and, given the necessary information they will make rational decisions and act rationally, however, Behavioral economics assumes that people are irrational players.

7 0
3 years ago
The common stock of CTI has an expected return of 14.48 percent. The return on the market is 11.6 percent and the risk-free rate
Bezzdna [24]

Answer:

1.35

Explanation:

Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

14.48 = 3.42 + b(11.6 - 3.42)

14.48 = 3.42 + b8.18

14.48 - 3.42 = 8.18b

11.06/8.18 = 1.35

5 0
2 years ago
In Mesopotamia, the ownership of property and the specialization of trades and crafts made visual identification necessary. Imag
marin [14]

Answer:

Cylinder seals

Explanation:

The human species originated in Africa around 300,000 years ago, but the first civilization that modern archaeologists have discovered was located in Sumer, Mesopotamia, around 10,000 BC.

Mesopotamians invented agriculture, writing, art, culture and trade. One of the ways to control goods produced and traded was to trademark them with cylinder seals specially to mark items on clay. They used clay a lot, for writing, pottery and construction.  

5 0
3 years ago
Read 2 more answers
Other questions:
  • The stock of Lavender Corporation is held as follows: 80% by Jade Corporation (basis of $400,000) and 20% by Tiffany (basis of $
    6·1 answer
  • Monetary policy administered by the fed is the principal method of softening the effects of the business cycle because _____.
    11·2 answers
  • Let the equation c = 2.32 n + 34,180 represent the cost of raising a child, c, on an income, n. if the corlone family has an inc
    7·1 answer
  • Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prem
    13·1 answer
  • In a perfectly competitive market, a firm's short-run supply curve is:_________.
    12·1 answer
  • Following are the merchandising transactions for Dollar Store:Nov. 1 Dollar Store purchases merchandise for $1,500 on terms of 2
    7·1 answer
  • Mario is a criminal attorney with a private practice. He has been appointed by the court to serve as a defense attorney for an i
    11·1 answer
  • Kris decided to go shopping for a pair of tennis shoes. She went to the mall where there were several stores selling shoes. The
    7·1 answer
  • On November 15, 2019, Tim, a cash basis taxpayer, gave his Daughter Nancy 1000 shares of JP Morgan common stock, which Tim purch
    14·1 answer
  • Dylan invested $7,200 in an account paying an interest rate of 2. 3% compounded quarterly. Assuming no deposits or withdrawals a
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!