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klasskru [66]
3 years ago
9

Acme published a story about paul and as a result paul sued acme for damage to his reputation, emotional distress, and punitive

damages. paul won an award of $20,000 for damages, $5,500 for emotional distress, and $50,000 for punitive damages. what amount must paul include in his gross income? $5,500 $20,000 $50,000 $70,000 all of the benefits are included in gross income.
Business
2 answers:
scZoUnD [109]3 years ago
8 0

Answer:

All of the benefits are included in gross income.

Explanation:

The gross income is the amount of money you receive in a specific period of time before taxes are deducted. When someone receives money from a lawsuit, this money is taxable and has to be included in the gross income with exception to the personal injury cases in which the benefits are tax-free but the injury has to be physical.

In this case, Paul has to pay taxes on his total earnings because emotional distress is not a physical injury and it would be taxed as an income. Because of that, the answer is that Paul must include in his gross income all of the benefits.

ivolga24 [154]3 years ago
7 0

All of the benefits for <em>non-personal injury</em> cases must be reported as gross income for tax purposes. Since defamation isn't a personal injury claim, all of the award must be reported and is subject to taxation.

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Jack, a return preparer, did not retain copies of all returns that he prepared but did keep a list that reflected the taxpayer's
BartSMP [9]

Answer:

D) Jack is in compliance with the provisions of the tax code, provided he retains the list for a 3-year period after the close of the return period in which the return was signed.

Explanation:

The Internal Revenue Service (IRS) requires tax return preparers to keep the following records;

  • either maintain a complete copy of each tax return or claim for refund they have filed for 3 years after the return period, or
  • maintain a list of the names, identification numbers, and tax years for those individuals or businesses whose tax returns were prepared and to keep this list for 3 years after the return period.

The tax preparer can choose the alternative that best suits hims or her.

4 0
3 years ago
Gni ppp, or gross national income divided by purchasing power parity, helps measure:
Alchen [17]
<span>GNI PPP, or gross national income divided by purchasing power parity, helps measure the standard of living in a country. GNI PPP is gross national income converted to international dollars using purchasing power parity rates. An international dollar has same purchase power over GNI as U.S. dollar has in the United States.</span>
5 0
2 years ago
A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution
Mashutka [201]

Answer:

Income = $30,000

Explanation

<em>Whenever a company is faced with a limiting factor i.e a resource in short supply, the company should allocate the resource to the product </em><u><em>with he highest contribution per unit of the scare resource</em></u>

Product       Cont/unit          machine hr /unit    cont/hr    Ranking

A                    $8                    2 hrs                      $4/hr             2nd  

B                    $18                  3 hrs                       $6/hr            1st

<em>Hence the company should allocate the resource to the product B</em>

<em>Hence the total contribution</em>

= 5000 hrs × $6 per hr.

= $30,000

Income = $30,000

6 0
3 years ago
Park Company reports interest expense of $340,000 and income before interest expense and income taxes of $6,120,000.(1) Compute
algol13

Answer: 1. 18 times

2. Park is in better position

Explanation:

1. Times interest earned is a financial ratio that measures interest coverage. It's essentially to check if a company can pay it's debt payments and is calculated by either EBIT or EBITDA divided by the total interest expense. The higher the better and anything above 2.5 times is usually considered.

Calculating would therefore be,

= $6,120,000 /$340,000

= 18 times.

2. As mentioned in the first answer, for the Times interest earned, the higher it is, the more favourable it is. So Park Company will be considered safer and are most definitely in a better or worse position than its competitor to make interest payments if the economy turns bad. The fact that theirs is 18 means that they can pay off their interest expense 5 times more than their competitor who can only repay 12 times.

If you need any clarification do comment.

7 0
2 years ago
Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer b
Reptile [31]

Answer:

b. quasi contract

Explanation:

-Liquidated damages refers to a mechanism in a contract in which a party can request a compensation because of breach.

-Quasi contract is  an agreement that is recognised by a court when there is no written contract between two parties and there is a conflict about a payment of a product or service.

-Reformation is a change made by a court in a document when one party that participates in it makes a request.

-Restitution is when someone receives a compensation for a loss or an injury.

According to the options given and the definitions, the answer is quasi contract.

7 0
3 years ago
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