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aniked [119]
3 years ago
5

Jim has a full-time job and occasionally designs Web sites for individuals and businesses. At the end of the year, Jim files his

taxes and reports his earnings from his full-time job and his Web design contracts. Was Jim right in reporting both incomes? Why or why not?
A)Yes, because the government requires individuals to report income earned from an employer and other sources.

B)No, because the income from the Web design contracts is not considered earned income.

C)No, because the income from his full-time job is not considered earned income.

D)Yes, because the government requires individuals to report only income from a full-time job.
Business
1 answer:
andre [41]3 years ago
6 0

A) Yes, because the government requires individuals to report income earned from an employer and other sources.

His side gig was the equivalent of self contracting. He would definitely have to report of he made over $400.
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Answer:

Explanation:

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5 0
4 years ago
On December 31, Year 1, Gaskins Co. owed $4,500 in salaries to employees who had worked during December but will not be paid unt
frez [133]

Answer:

b. Decrease in net income; no effect on cash flow from operating activities

Explanation:

The adjusting entry is shown below:

Salaries expense A/c Dr $4,500

              To Salary payable A/c Dr $4,500

(Being the accrued salary is recorded)

As we can see that the salaries expense is an expense account due to which the net income got decreased plus the salary payable has come under current liabilities of the balance sheet so there is no impact on the cash flow from operating activities

4 0
3 years ago
There are more corporations in this country than any other business structure.<br> OTrue<br> O False
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6 0
3 years ago
Read 2 more answers
TPW, a calendar year taxpayer, sold land with a $535,000 tax basis for $750,000 in February. The purchaser paid $75,000 cash at
statuscvo [17]

Answer:

Explanation:

Amount realized on sale:

Cash                                                                 $75,000

Purchaser’s note 675,000

                                                                                         $750,000

Adjusted basis (535,000)

Gain realized on sale $215,000

b. $215,000 gain realized ÷ $750,000 contract price = 28.67% gross profit percentage.

Cash received in year of sale:

Cash at closing                                             $75,000

August principal payment 33,750

                                                                                       $108,750

Gain recognized   (108750*28.67%) $31,179

A. Book gain                                     $215,000

Tax gain (31,179)

Book/tax difference                                       $183,821

B. $183,821 × 35% = $64,338 deferred tax liability

The excess of book gain over tax gain is a favorable difference.

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4 years ago
What is opportunity cost? ( selext the best answer)
bixtya [17]

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Explanation:

8 0
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