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Mariulka [41]
3 years ago
12

In December 2019, Todd, a cash basis taxpayer, paid $1,200 fire insurance for the calendar year 2020 on a building he held for r

ental income. Todd deducted the $1,200 insurance premiums on his 2019tax return. He had $150,000 of taxable income that year. On June 30, 2020, he sold the building and, as a result, received a $500 refund on his fire insurance premiums. As a result of the above:
a. Todd should amend his 2019 return and claim $500 less insurance expense.
b. Todd should include the $500 in 2020 gross income in accordance with the claim of right doctrine.
c. Todd should add the $500 to his sales proceeds from the building.
d. Todd should include the $500 in 2020 gross income in accordance with the tax benefit rule.
e. None of these choices are correct.
Business
1 answer:
77julia77 [94]3 years ago
5 0

Answer:

D) Todd should include the $500 in 2020 gross income in accordance with the tax benefit rule.

Explanation:

Since Todd is a cash basis taxpayer, he included the $1,500 insurance premium in his 2019 tax return. Cash basis taxpayer report revenues or expenses when the cash is received or paid, not when the service is provided.

Since he received a $500 refund in 2020, he should include it in his 2020 tax return. As a cash basis taxpayer, any money received is considered income.

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Extrinsic value is the portion of the worth that has been assigned to an item by external factors.

Hope this helped a little!

3 0
3 years ago
When Anastasia sells her Tesla common stock at the same time that Roman purchases the same amount of Tesla stock, Tesla receives
Ivenika [448]

Answer: Nothing

Explanation:

When Anastasia sells her Tesla common stock at the same time that Roman buys the same amount of Tesla stock, then Tesla will receive nothing.

Forur example, let's assume that Anastasia sells her Tesla common stock which was worth $2000 and Roman buys the same amount of Tesla stock, which was $2000. Then Tesla will get: $2000 - $2000 = 0. Therefore, the answer is nothing.

7 0
3 years ago
A study examining the performance of numerous assets from the United States and around the world confirms that a. U.S. equities
antoniya [11.8K]

Answer:

d. beta did a better job of explaining the returns than standard deviation

Explanation:

Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more  logical.

Standard deviation computes the total risk associated.

Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:

That risk shall not counted as for comparison as that is associated universally. Further, the risk associated with particular factors like bankruptcy of a company, or some legal case issue of a company are precisely described by beta coefficient.

Thus, beta provides better details about explaining the returns.

5 0
3 years ago
Compared to traditional nonprofit startups, enterprising nonprofits are far less likely to survive in business after the first f
mash [69]

Compared to traditional nonprofit startups, enterprising nonprofits are far less likely to survive in business after the first five years: FALSE

<h3>Traditional nonprofit startups and enterprising nonprofits startups:</h3>
  • Enterprising Non-Profits, or enp, is a one-of-a-kind collaborative program that encourages and supports the establishment and growth of social enterprises as a means of building successful non-profit organizations and healthier communities.
  • A tax-exempt organization created for religious, charitable, literary, artistic, scientific, or educational objectives is known as a non-profit enterprise.
  • It is a corporation from which the shareholders or trustees do not profit financially.
  • Most organizations qualify for one of the three primary categories, which include public charities, private foundations, and private running foundations.
  • Unlike traditional nonprofit starts, enterprising nonprofits are considerably more likely to survive after the first five years.

As it is given in the description itself, unlike traditional nonprofit starts, enterprising nonprofits are considerably more likely to survive after the first five years.

Therefore, the statement "compared to traditional nonprofit startups, enterprising nonprofits are far less likely to survive in business after the first five years" is FALSE.

Know more about Enterprising Non-Profits here:

brainly.com/question/3843195

#SPJ4

Complete question:

Compared to traditional nonprofit startups, enterprising nonprofits are far less likely to survive in business after the first five years. TRUE or FALSE

6 0
2 years ago
What is IKEA trying to achieve in the Global Market?
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Answer:

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6 0
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