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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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Billy-Bob owns a condo in Seattle, and a farm in Yakima. His older brother, Bobby-Lee, has some severe health problems and is un
Eduardwww [97]

Answer: B. Once Bobby-Lee dies, Judy will own the "fee simple" title to the property.

Explanation:

In the Life Estate arrangement, a person is granted use and ownership of a property for as long as they are alive. When they die however, if a Remainder also known as <em>Remainder- man</em> is named, then the property rights transfer to the Remainder- man.

The Remainder-man then gets access to the property and owns in to the highest extent of the law which in common law countries such as the United States, is the Fee Simple title ownership. This gives them the right to basically do what they want with the property.

Bobby-Lee therefore gets the rights to the property but once he dies, his sister Judy will own a <em>fee simple</em> title to the property.

6 0
3 years ago
The terms of trade must be higher (graphically to the right) of a nation's own production __________________
Zepler [3.9K]

Answer: cost ratio

Explanation: The terms of trade must be higher (graphically to the right) of a nation's own production cost ratio. The production cost ratio allows small-scale manufacturers to determine their cost more accurately as well as control known cost parameters and is a method that can be adapted and applied to any business.

In a multi-product manufacturing firm, the production cost ratio is necessary for accurate compilation and allocation of production costs to each category of product especially when both the Production Time and the Production Runs are not the same and/or when fixed labor, overhead and other costs are drawn from the same pool. When the ratio is not applied results in a skewed allocation of production costs. This in turn can affect the business as it becomes difficult to ascertain the products whose production are more profitable to the business.

3 0
4 years ago
firms should emphasize the importance of consistently good customer service to its employees so that good customer service becom
ipn [44]

Firms should emphasize the importance of consistently good customer service to its employees in order that good customer service becomes a part of the organizational culture.

Organizational culture is that the collection of values, expectations, and practices that guide and inform the actions of all team members. consider it because the collection of traits that make your company what it's. a good culture exemplifies positive traits that result in improved performance, while a dysfunctional company culture brings out qualities that may hinder even the foremost successful organizations. Organizational culture affects all aspects of your business, from punctuality and tone to contract terms and employee benefits. When workplace culture aligns together with your employees, they’re more likely to feel softer, supported, and valued. Companies that prioritize culture may also weather difficult times and changes within the business environment and are available out stronger.

Learn more about Organizational culture.

brainly.com/question/16049983.

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6 0
1 year ago
Sally’s parents deposited $15,000 into a college savings account on her third birthday. The account had an interest rate of 9.6%
kozerog [31]

Answer:

The correct option is yes,the $15,000 will double each 7.5 years.In 15 years ,it will double twice.

Explanation:

The 72 rule stipulates that the number of years it would take an investment to achieve accumulate a certain amount- future value, can be computed by dividing 72 by the interest rate earns by the investment

N, the number of years=72/9.6

                                      =7.5 years

Invariably,in 7.5 years' when Sally would have been 10.5 years(3 years now+7.5 years) the investment would have doubled.

By another 7.5 years when Sally would have been 18 years(10.5 years +7.5 years), the investment would have doubled twice.

The 72 rule is fast-track approach to calculating the duration of an investment.

7 0
3 years ago
Read 2 more answers
What is a significant part of the step of evaluating controls and determining which controls to implement?
Kisachek [45]

Answer:

"CBAs" would be the appropriate answer.

Explanation:

  • The CBAs system was intended to incorporate various business practices and knowledge across multiple security experts as well as provide a structured process to match application development policies and procedures with either the institution's threat analysis.  
  • As either a consequence, a structure is developed to enhance their safety infrastructure of business process development.
6 0
3 years ago
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