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erma4kov [3.2K]
3 years ago
12

Monty loaned his friend Ned $20,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remain

ing balance was $11,000, Ned filed for bankruptcy and notified Monty that he would be unable to pay the balance on the loan. Monty treated the $11,000 as a nonbusiness bad debt. Last year, before considering the tax implications of the nonbusiness bad debt, Monty had capital gains of $9,000 and taxable income of $45,000. During the current year, Ned paid Monty $10,000 in satisfaction of the debt. Determine Monty’s tax treatment for the $10,000 received in the current year.
Business
1 answer:
maks197457 [2]3 years ago
5 0

Answer:

the amount of $10,000 received for the previous bad debt deduction must be included in the current years income.

Explanation:

The account receivable that is previously been written off as uncollectible but received during the current tax year requires a reversal of the write-off entry. however, if it was written off as uncollectible during the tax year then the tax benefit rule requires tha the income must be reported.

the amount of $10,000 received for the previous bad debt deduction must be included in the current years income.

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Bob and Sally are married, file a joint tax return, report AGI of $120,000, and have two children. Del is beginning her freshman
ch4aika [34]

Answer:

B) $5,000

Explanation:

Bob and Sally can claim an American Opportunity (AO) credit for both of their children, Del and Owen.

Del's AO credit is $2,500 (100% of  the initial $2,000 qualifying expenses and 25% of the next $2,000 qualifying expenses).

Owen's AO credit is the same as Del's, $2,500.

The total American Opportunity credit claimed is $5,000 ($2,500 + $2,500)

6 0
3 years ago
Which is an example of a mandatory deduction on a pay stub?
Grace [21]

Answer:

Some mandatory payroll tax deductions that employers are required by law to withhold from an employee's paycheck include: Federal income tax withholding. Social Security & Medicare taxes – also known as FICA taxes.

~Its srishty~✿

3 0
2 years ago
According to the Census Bureau, in October 2016, the average house price in the United States was $354,900. In October 2000, the
Mars2501 [29]

Answer:

3.18%

Explanation:

Calculation for the annual increase in the price of the average house sold

We are suppose to use this formula FV = PV (1+r)^t but since we are looking for R the formula to use will be:

R = (FV / PV)^1/16– 1

Let note that 2016-2000 will give us 16 years

Where,

FV=$354,900

PV=$215,100

Let plug in the formula

R= ( $354,900/$215,100 )^1/8)16– 1

R=(1.6499)^1/16-1

R=1.0318-1

R=0.0318×100

R=3.18%

Therefore the annual increase in the price of the average house sold will be 3.18%

4 0
3 years ago
In a deferral adjustment for revenues collected in advance that are now earned, ______. a) the liability recorded when cash was
frosja888 [35]

Answer:

a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned

Explanation:

When cash is received for revenue yet to be earned, it is called deferred revenue. The entries posted at this point is a Debit to Cash (an increase in cash balance) and a Credit to Deferred revenue (a liability account). When the revenue gets earned, it get recognized with a Debit to Deferred revenue (to reduce the liability as the obligation has been fulfilled resulting in revenue being earned) and a Credit to Revenue (P/L).

Hence, the right option is a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned.

8 0
3 years ago
your client katrina is ready to close on her new home, but when you checked yesterday, the seller still hasn't dealt with the fo
garik1379 [7]

The broker's professional services are covered under an employment contract, is the answer. The listing serves as the seller's employment contract with the broker.

An action that would the otherwise be taken or not taken would be affected by a material fact, according to a reasonable person. As the seller doesn't have to worry about employment the bank will approve your loan, the Sam Heskel, president of Nadlan Valuation, an appraisal management company in broker, New York, believes that a cash offer is typically more alluring than a finance offer. The buyer's agent is an employee of one the firm.

To learn more about broker, click here.

brainly.com/question/14094023

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3 0
1 year ago
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