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kotykmax [81]
2 years ago
12

In December of Year 4, John (a cash-basis taxpayer) received a $2,000 payment from Tom who signed a year's lease to rent John's

house. The $2,000 payment consisted of the following:
1st Month's Rent (for the month of December, Year 4) $800Last Month's Rent (for the month of December, Year 5) 800Security Deposit (to be returned at end of lease) 400

How much should John include as rental income on his Year 4 tax return as a result of the $2,000 payment?
Business
1 answer:
larisa86 [58]2 years ago
6 0

Answer:

John should include $1,600 as rental income on his Year 4 tax return as a result of the $2,000 payment.

Explanation:

As a cash-basis taxpayer, John's taxable income is based on the actual cash receipts and payments made in the accounting period.  The refundable part of the rent should not be included as rental income since it is a security deposit that would be returned at the end of the lease period.  If John were an accrual-basis taxpayer, the rental income to be included would have been only $800 representing income for Year 4.

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Residual Disability Income pays funds to the insured, to make up for what the insured would have earned after returning to work,
siniylev [52]

Answer:

The correct answer is Total disability.

Explanation:

The total disability can be the result of an illness, derive from a previous situation of temporary disability or consequence of an accident. Its determination implies a series of economic benefits linked to a specific degree of permanent disability.

8 0
3 years ago
Fayol's Principles of Management provide an accurate description of what managers actually do on the job.​
ch4aika [34]

Answer:

b) false

Explanation:

This statement is false, because Fayol's management principles were an administrative methodology that provided for observing the facts of an organization and the experiment, being therefore principles that are unable to provide an accurate description of what managers do in the job.

Its management principles consist of: Division of Labor, authority, discipline, management unit, control unit, Subordination of individual interests to the common good, remuneration, centrality, hierarchy, order, equity, stability, initiative and team spirit.

He believed that this set of principles would lead to more effective management where the company would achieve greater efficiency through structural organization and the control and monitoring of functions.

6 0
3 years ago
Which of the following would likely be covered under homeowners insurance but NOT by renter's insurance?a. Your basement floods,
VladimirAG [237]

Answer:

C

Explanation:

The answer is a tree branch breaks your bedroom window during a storm because this is covered by the homeowners insurance and not by the renters insurance

Renter’s insurance does not cover building or Structure on sites

7 0
3 years ago
Kristen Lu purchased a used automobile for $10,100 at the beginning of last year and incurred the following operating costs: Dep
densk [106]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Kristen Lu purchased a used automobile for $10,100 at the beginning of last year and incurred the following operating costs: Depreciation ($10,100 ÷ 5 years) $ 2,020 Insurance $ 1,100 Garage rent $ 600 Automobile tax and license $ 280 Variable operating cost $ 0.14 per mile

1) 10,000 miles

Insurance= 1,100

Garage= 600

Tax= 280

Variable costs= 0.14*10,000= 1,400

Total= $3,380

Cost per mile= 3380/10000= $0.338

2) The only relevant cost is the variable operating cost per mile. The other costs will exist whether she uses the car or not.

3 0
3 years ago
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $5,130,000 (190,00
SSSSS [86.1K]

Answer:

Estimated manufacturing overhead rate= $7.53 per direct labor hour

Explanation:

Giving the following information:

The company's executives estimated that direct labor would be $5,130,000 (190,000 hours at $27/hour) and that factory overhead would be $1,430,000 for the current period.

We need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 1,430,000/190,000= $7.53 per direct labor hour

8 0
3 years ago
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