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Ipatiy [6.2K]
4 years ago
15

Ralph, a cash basis taxpayer, owns an office building that he leases to various tenants. During 20X8, he signed a three-year lea

se with a tenant and received a check for $16,000 for the following:
Rent for November 1, 2008 to October 1, 2009 $5,000
Advance rent for last three months of lease 600
Security deposit (refundable) 400

For the current year, 2008, Ralph must report income of:__________

a. $6,000
b. $5,600
c. $5,000
d. $832
e. some other amount.
Business
1 answer:
vagabundo [1.1K]4 years ago
7 0

Answer:

b. $5,600

Explanation:

A cash basis taxpayer will report revenues and expenses when they are actually collected or paid for. The business transaction is not directly related to the moment that the payment occurs (unlike accrual accounting).

in this case, Ralph should report all the income related to monthly rental payments = $5,000 (Nov. 2008 - Oct. 2008) + $600 (the three last months of rent) = $5,600. Security deposits are not considered rental revenue, so they should not be reported as such.

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The key to building a network is to: a. be able to ask for favors. b. convince someone to do something that he or she may not or
Fed [463]

Answer:

c.

Explanation:

A network is a group of two or more points (buildings, people, computers etc.) that are linked together to share information. The key to building a network is to get people to enroll in your vision due to your enthusiasm or idea. The more people that believe in your vision, the more individuals will join your network. Which is what a network needs, more and more endpoints to contribute to its existence.

7 0
3 years ago
Knowledge Check 01 On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man
Simora [160]

Answer:

Cash Dr 10975  

     To Sales  $10,000  

     To  Sales Tax Payable $975 ($10,000 × 9.75%)

(Being the cash is recorded)

Explanation:

The journal entry is shown below;

Cash Dr 10975  

     To Sales  $10,000  

     To  Sales Tax Payable $975 ($10,000 × 9.75%)

(Being the cash is recorded)

For recording this we debited the cash as it increased the assets and credited the sales and sales tax payable as it also increased the revenue and liabilities

4 0
3 years ago
The default paper size is _____.
VashaNatasha [74]
8 and 1/2 inches by 11 inches
7 0
3 years ago
a 2-year treasury security currently earns 6.75 percent. over the next two years,the real interest rate is expected to be 3.18 p
Anna35 [415]

The maturity risk premium on the 2-year Treasury security is C. 1.39%

Using this formula

rd = r* + IP + MRP

Where

rd represent Required rate of return on 2-year Treasury Security = 6 75%

r* represent real risk free return = 3.18%

IP represent Inflation Premium = 2.18%

MRP represent Maturity Risk Premium

Let plug in the formula

6.75% = 3.18% + 2.18% + MPR

6.75%=5.36%

MRP=6.75% -5.36%

MRP = 1.39%

Inconclusion the maturity risk premium on the 2-year Treasury security is C. 1.39%.

Learn more here:

brainly.com/question/15314847

3 0
2 years ago
In which of the following situations will the acting party be liable for the tort of negligence? Explain fully.
Eddi Din [679]

Answer:

C). Shannon's physician gives her some pain medication and tells her not to drive after she takes it, as the medication induces drowsiness. In spite of the doctor's warning, Shannon decides to drive to the store while on the medication. Owing to her lack of alertness, she fails to stop at a traffic light and crashes into another vehicle, causing a passenger in that vehicle to be injured.

Explanation:

Negligence is defined as the 'tort whereby a duty of reasonable or standard care as defined by law is breached, causing damage or any conduct short of .'

In the above situation, Shanon was aware of the after-effects of the medication she took as her physician instructs her to not drive because she may feel drowsy. Despite this warning, her decision to drive to the store reflects her negligence i.e. 'intentional action that falls below the legal standard for preventing unreasonable damage or harm.' Thus, <u>option C</u> is the correct answer.

5 0
3 years ago
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