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Lorico [155]
3 years ago
13

Mason and Janet were divorced in 2015. Their daughter Kelly lives with Mason, and Janet pays $650 per month of child support. Wh

ich of the following statements are true?
a. Mason must claim the child support as income.

b. Janet can deduct the child support as an adjustment to income.

c. The child support is income received by the child and provided for her own support.

d. Child support payments received are not taxable income, and child support paid is not a deductible expense.
Business
1 answer:
hoa [83]3 years ago
6 0

Answer:

The answer is option "d."

Explanation:

To answer this question, you need to keep in mind that child support is a "tax neutral" event according to the IRS. Interestingly, alimony or spousal support used to be considered as a tax deductible event, but the rules have now changed and even alimony is now considered tax neutral.

Lets take an example to answer the question. If a parent were to go to a toy store and buy a plane model for $ 200 as a birthday gift for their child, would the parent include it as a tax deductible transaction? No, because its a personal expense which is not categorized as tax deductible by the IRS. In the case of the question, rather than spending money on the toy store, Janet is paying Mason the money which will be used to meet the personal support expenses of the child which is similarly not tax deductible.

Mason does not have to consider child support as income either since the money is specifically provided to meet any expense of the child. The child does not have to claim it as income either since the child can think of it as pocket money. Pocket money is not required to be reported to the IRS as income.

In light of the above, the correct answer is option D. Child support is neither taxable income nor a tax deductible expense.

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In its​ year-end income​ statement, Black Knights Company reported cost of goods sold of​ $450,000. Changes occurred in several
torisob [31]

Answer:

The answer is $330,000

Explanation:

Cash paid to suppliers is the total amount of cash paid to its creditors.

We can find that through:

Cost of sold

Minus: Decrease in inventory

Plus: Decrease in accounts payable

=Cash paid to suppliers.

Now let's start:

Cost of sold - $450,000

Decrease in inventory - $160,000

Decrease in accounts payable- $40,000

$450,000 - $160,000 + $40,000

=$330,000

Therefore, Cash paid to suppliers is $330,000

5 0
3 years ago
Identify the set of character traits under the achievement, planning, and power clusters. From each cluster, choose one characte
ValentinkaMS [17]

The set of character traits under the achievement, planning, and power clusters includes: opportunity seeking and initiatives, persistence, fulfilling commitment (commitment to work contract), taking risk (calculated), demand for efficiency and quality, goal seeking, information seeking, systematic planning and monitoring, persuasion and networking, self-confidence and independence

One character trait that in your opinion best describes me is

  • Persistence

One personal experience that demonstrates that trait was;

  • There was a time in my life, I was searching for a job. A friend of mind gave me a job that was not in my field of expertise to work on. He told me how to do it, but I was experiencing some difficulties. But when I think of how cashless I was and how I don't want to give up and disappoint the person who trust me, I put extra effort into studying more concerning the work.
  • I did a very good job of which i was commended for and so i promise myself not to give up but be more persistence in all that i hope to achieve.

For better understanding, let us explain what the Character Traits means

  • Character Trait is simply known as the mark or attribute that set apart an entrepreneur from the owner of an ordinary small business.

  • Achievement Cluster is simply made up of entrepreneurial character traits that are closely linked to the entrepreneur's desire to be an achiever in his/her field of entrepreneurship.

  • Planning Cluster is simply refered to as different characteristics of successful entrepreneurs that basically supports the character traits in the achievement cluster

From the above, we can therefore say that the answer The set of character traits under the achievement, planning, and power clusters includes: opportunity seeking and initiatives, persistence, fulfilling commitment (commitment to work contract), taking risk (calculated), demand for efficiency and quality, goal seeking, information seeking, systematic planning and monitoring, persuasion and networking, self-confidence and independence

One character trait that in your opinion best describes me is

  • Persistence

One personal experience that demonstrates that trait was:

  • There was a time in my life, I was searching for a job. A friend of mind gave me a job that was not in my field of expertise to work on. He told me how to do it, but i was experiencing some difficulties. But when I think of how cashless i was and how I don't want to give up and disappoint the person who trust me, I put extra effort into studying more concerning the work.
  • I did a very good job of which I was commended for and so I promise myself not to give up but be persistence in all I do, are correct

Learn more about character traits from:

brainly.com/question/18597344

6 0
2 years ago
What are renewable energy sources?
Molodets [167]

Energy sources that will never run out. Such as, light, air, and water. But it can be ruined. I didnt Google any of this. Please give me brainliest, I just need one more to lvl up!

3 0
3 years ago
Read 2 more answers
Giorgio Italian Market bought $11,000 worth of merchandise from Food Suppliers and signed a 45-day, 8% promissory note for the $
Masja [62]

Answer:

                                                Dr.          Cr.

Purchases / Inventory         $11,000

Promissory Note Payable                  $11,000

Explanation:

Promissory note is a signed document which contains a written promise for payment of stated amount to specific person or bond holder on demand or specified date.

In this case the purchases are made and a promissory note of $11,000 is signed for 45 days at 8% annual rate.

This entry will be recorded as the purchases or Inventory are debited and as promissory note is a short term liability so, promissory note payable is credited resulting increase in inventory as well increase in current liability.

5 0
3 years ago
Rushmore Company provided services for $45,000 cash during Year 1. Rushmore incurred $36,000 of operating expenses on account du
laila [671]

Answer:

The amount of the net income shown on the income statement is $9,000

Explanation:

The computation of the net income is shown below:

Net income = Services provided for cash =  operating expenses incurred

= $45,000 - $36,000

= $9,000

According to the matching principle, the revenues of a particular period should always be matched with the expenses that are incurred in that particular year

So, the net income that is to be reported on the income statement is $9,000

Note: Options are shown in the attachment

6 0
4 years ago
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