Answer:
Accounting equation is stated as follows:
Assets = Liabilities + Stockholder's Equity
Transaction 1
Providing services will increase revenue, which will increase stockholder's equity. And since it is on account it will increase assets by the same amount = $39,000
Transaction 2
Cash received will increase cash in assets and will decrease accounts receivables in assets. Net effect = 0
Transaction 3
Purchase of equipment will increase equipment that is asset by $24,000 and further it is purchased through a note payable, it will increase liability with the same amount.
Transaction 4
This will decrease cash as paid in cash which will decrease assets, and further this will be expense for the period which will decrease the revenue and will decrease the stockholder's equity.
Answer:
$200,000 and $500,000
Explanation:
The computations are shown below:
For gain recognized:
= Fair market value of the received land - corporation basis
= $500,000 - $300,000
= $200,000
For land basis received by Red Blossom corporation:
= $500,000
It records only the fair market value of the land, not the land basis for tea Company so only $500,000 would be considered
Answer:
The statute of limitations is as indicated for different cases:
a: Fraud: The statute of limitations remains open.
b:Disallowance of tax deduction items: The assessment is made within three years from the later date of tax filing or due date.
c: The omission of rental income that is equal to greater than 25% of the taxpayer's reported gross income: A six year statute of limitation is applicable.
Explanation:
The statute of Limitations for the following cases are
a. Fraud (e.g., failure to file a tax return)
In this case the statute of Limitations indicate that <em>The statute of limitations remains open indefinitely if a fraudulent return is filed or if no return is filed at all.</em>
b. Disallowance of tax deduction items
In this case the statute of Limitations indicate that <em>The general rule for the disallowance of tax deduction items is that an assessment may be made against the taxpayer within three years from the later of the date the tax return was filed or its due date.</em>
c:The omission of rental income that is equal to greater than 25% of the taxpayer's reported gross income
In this case the statute of Limitations indicate that <em> A six year statute of limitations applies if the taxpayer omits an item of gross income that is in excess of 25% of the gross income that is reported on the return.</em>
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The resource that is sustainable is Sunlight
<span>The given data which is "Steve is an avid runner and has been quite slim his whole life. he runs moderate- to long-distances 3 or 4 days per week. running is his only physical activity. steve has never been interested in resistance training because it is not his strong suit. steve recently decided that he is tired of being skinny. he would like to put on some size and muscle before he travels back to his hometown for a good friend's wedding in 12 weeks," is part of the background and goals that are also part of a Client Profile.</span>
