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Elanso [62]
3 years ago
14

In December 2014, Todd, a cash basis taxpayer, paid $1,200 fire insurance for the calendar year 2015 on a building he held for r

ental income. Todd deducted the $1,200 insurance premiums on his 2014 tax return. He had $150,000 of taxable income that year. On June 30, 2015, 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 2014 return and claim $500 less insurance expense.
b. Todd should include the $500 in 2015 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 2015 gross income in accordance with the tax benefit rule.
e. None of these choices are correct.
Business
1 answer:
Kamila [148]3 years ago
7 0

Answer: D. Todd should include the $500 in 2015 gross income in accordance with the tax benefit rule.

Explanation:

It should be noted that due to the fact that Todd is a cash basis taxpayer, he'll be able to deduct the one-year prepayment for insurance in the year that it was paid, 2014.

In this case, he deducted $1,200, then his net cost will be ($1200 - $500) = $700. In this case, Todd should then include the $500 refund in gross income for 2015 under the tax benefit rule.

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Bearcat Construction begins operations in March and has the following transactions.
aleksklad [387]

Answer:

Bearcat Construction

General Journal

March 1

Cash $17,500 (debit)

Common Stock $17,500 (credit)

<em>Cash Received in Exchange of Common Stock</em>

<em />

March 5

Cash $8,300 (debit)

Note Payable $8,300 (credit)

<em>Cash received from Bank Loan</em>

<em />

March 10

Equipment (debit)

Cash (credit)

<em>Purchase of Equipment by Cash</em>

March 15

Advertising Expenses (debit)

Cash (credit)

<em>Advertising Expense paid in Cash</em>

<em />

March 22

Accounts Receivable $17,300 (debit)

Service Revenue $17,300 (credit)

<em>Service Rendered on Credit</em>

March 27

Cash $17,300 (debit)

Accounts Receivable $17,300 (credit)

<em>Cash Received from Accounts Receivables</em>

<em />

March 28

Salaries Expense $5,300 (debit)

Cash $5,300 (credit)

<em>Salaries paid in Cash</em>

Explanation:

See the Journal Entries and Narrations that i have prepared above.

8 0
3 years ago
416,000 people each receive an average refund of $3,600, based on an interest rate of 3 percent, what would be the lost annual i
victus00 [196]

Answer:

$44,928,000

Explanation:

The fact that 416,000 received a refund of $3,600 each means that the tax authority would lose the interest income that could have been generated on the total refund amount based on a 3% interest rate of return.

Lost annual income=number of people who got refund*average refund per person*interest rate of return

number of people who got refund=416000

average refund per person=$3,600

the interest rate of return=3%

Lost annual income=416,000*$3,600*3%

Lost annual income=$44,928,000  

6 0
3 years ago
When was the Fair Labor Standards Act (FLSA) established?​
Snezhnost [94]

Answer:

The Fair Labor Standards Act was established in 1938.

6 0
3 years ago
QUESTION THREE
sveta [45]

From the amount of capital that the graduates had, the firms economic depreciation would be $10000

<h3>How to solve for the economic depreciation of the firm</h3>

Original cost of the capital - market value of capital after a year

= $30000 - $20000

= $10000

<h3>How to solve for the partnership costs</h3>

This is the Cost of capital plus cost of office space and cost of interest =  $44,520

<h3>How to solve for economic profit</h3>

Total revenue - partnership cost

100000 - 44520

= $55,480

Read more on economic depreciation here: brainly.com/question/14552090

#SPJ1

4 0
1 year ago
Name a form of ownership that is represented by South African broadcasting corporation (SABC) and outline four characteristics o
TEA [102]

Answer:

State ownership

Explanation:

State ownership, or government ownership, or public ownership, is a form of ownership were the government owns or partly owns as well has control over a business with the revenue from the business or establishment being added as benefits accruable to the welfare of the public

The characteristics of a state ownership are;

1) State ownership means that the government is the owner, or part owner of the establishment, where part ownership belongs to the public

2) The main purpose of a state owned business is not to make profit, but rather to provide public welfare, that benefits the residents of the country

3) The profits from the business are entered into the treasury of the state and are used to carry out public welfare projects

4) The employees of the government are the managers of the establishment which is subject to bureaucracy, and the business is operated with a state selected board of directors

5) The government determines the manner of stability present in the business, as well as the winding up of state owned businesses that have no function

6) The state owned business is operated by the laws and policy if the business and it is therefore recognized as an autonomous body

6 0
2 years ago
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