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kodGreya [7K]
3 years ago
11

Barry has a successful methamphetamine laboratory. Producing methamphetamine is illegal under federal law. Is Barry required by

law to report the income from his lab on his tax return? Why?
Business
1 answer:
Rufina [12.5K]3 years ago
4 0

Answer:

Yes, Barry is required by law to report the income from his lab on his tax return.

Explanation:

The provision of Internal Revenue Code (IRC) enacted by US congress give no exception for illegal income tax and where there is no explicit exception, taxable income is all income from whatever source it was derived be it legal or illegal.

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When only certain EOC team members or organizations are activated to monitor a credible threat, which Activation Level has been
loris [4]

Answer:

The correct answer is letter "A": Level 2 - Enhanced Steady-State.

Explanation:

In the enhanced steady-state (L2) of an emergency, only part of the members of the critical response team is requested to verify the credibility of the threat to find out what are the steps needed to be followed under an unfavorable situation. Among their activities, the staff members issue alerts and coordinate with mission partners.

5 0
3 years ago
Beige Corporation, a C corporation, purchases a warehouse on August 1, 2007, for $1 million. Straight-line depreciation is taken
olchik [2.2K]

Answer and Explanation:

The computation of the amount and character of the gain recorded is shown below:

1. Recognized gain would be

= Sales - the cost of the property - recovery cost

= $1,200,000 - $1,000,000 - $411,750

= $611,750

2. Now as per the section 1245 the potential recapture is $411,750

3. Now extra section 291 ordinary income in the case when it is a corporation

= $411,750 ×20%

= $82,350

4. And finally $82,350 would be considered as an ordinary income under section 291 while the remaining balance i.e.

= $611,750 - $82,350

= $529,400

This amount would be considered as a gain under section 1231

5 0
3 years ago
A useful way of standardizing financial statements is to choose a ____ and then express each item relative to the _____.
bulgar [2K]

The most useful way of standardizing financial statements is to choose a _<u>base year</u>,_ and then express each item in the period under review relative to the _amounts____ in the base year.

<h3>What are comparative financial statements?</h3>

Comparative financial statements compare a particular financial statement with previous statements. Previous financial statements are presented in side-by-side columns with the latest figures. With this, investors are able to track a company's progress over some periods and compare the company's financial results and performance with its industry competitors.

Thus, financial statements can be compared using financial ratios, which express the relationships between the various items within a financial statement, or using a base year.

Learn more about comparative financial statements and financial ratios here: brainly.com/question/9091091

4 0
2 years ago
The IRS assessed a large tax and penalty against Karl. Karl retained Roger, the CPA who prepared the tax returns, to challenge t
soldi70 [24.7K]

Answer:

d.economic duress

Explanation:

The economic duress in simple terms means a party who is entering into a contract frightens or threatens of cancelling the contract or does not act according to the terms of the contract unless the other party in the contract agrees to their demands.

In the context, the conduct of Roger against Karl is probably can be called as the 'economic duress' as Roger informs Karl before the deadline of filing the response that he will not represent himself against IRS unless Karl enters into a deal of an expensive retainer agreement. Thus it is an economic duress that Roger is showing and forcing Karl to agree on his demands.

7 0
3 years ago
After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He w
True [87]

Answer:

Part of the labor force and employed

Explanation:

After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered part of the labor force and employed. Although Yunis is not getting anything in return and he is working 25 hours a week but he still will be considered as the part of the labor force and employed because he is working in his own business and the money generated with his services will be coming to his own family, therefore, he will be considered as an employed man.

3 0
3 years ago
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