Question 1 Todd is a cash-basis taxpayer. Daren Corporation made the following payments to or on...
Question 1
Todd is a cash-basis taxpayer. Daren Corporation made the following
payments to or on behalf of Todd during 2019.
Note received in lieu of bonus (Fair market
value $3,000, no payments made in 2016) $5,000
Advance commissions for services to be performed
in the future 1,000
Group-term life insurance premium paid by Daren
Corporation on insurance coverage of $50,000 100
What amount should Todd report as income in 2019?
1) $6,100
2) $5,100
3) $4,100
4) $4,000
Wade Woods is an employee of a meat packing plant that allows
him to purchase goods at a discount that exceeds the gross profit
percentage of the price at which the goods are offered to regular
customers. Wade must include the portion of the discounts that
exceeds the gross profit percentage in his income.
1) True
2) False
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Question 1
Todd is a cash-basis taxpayer. Daren Corporation made the following
payments to or on...
Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments...
Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2019, for a total of $3,200. Tungsten filed its 2019 tax return in 2020 and the return showed a tax liability $4,200. When it filed its tax return in 2020, Tungsten paid an additional $1,000 in Federal income taxes. How does the additional payment of $1,000 impact Tungsten's E & P? Increase by $1,000 in 2019. Increase by $1,000...
Reed Corporation, an accrual basis taxpayer, reports the following results for the current year: Income: $...
Reed Corporation, an accrual basis taxpayer, reports the
following results for the current year:
Income: $ 290,000 16,000 5,000 9,000 140,000 4,000 Gross profit from manufacturing operations Dividends received from 25%-owned domestic corporation Interest income: Corporate bonds Municipal bonds Proceeds from life insurance policy on key employee Section 1231 gain on sale of land Expenses: Administrative expenses Bad debts Depreciation: 100,000 7,000 70,000 82,000 34,000 46,000 13,000 4,000 2,000 34,100 300 Financial accounting Taxable income Alternative depreciation system (for E...
Pebble Corporation, an accrual basis taxpayer, has struggled to survive since its formation, six years ago....
Pebble Corporation, an accrual basis taxpayer, has struggled to survive since its formation, six years ago. As a result, it has a deficit in accumulated E & P at the beginning of the year of $340,000. This year, however, Pebble earned a significant profit; taxable income was $240,000. Consequently, Pebble made two cash distributions to Martha, its sole shareholder: $150,000 on July 1 and $200,000 December 31. The following information might be relevant to determining the tax treatment of the...
Question 1 BWS Corporation pays the premiums on an $80,000 group-term life insurance policy on the...
Question 1 BWS Corporation pays the premiums on an $80,000 group-term life insurance policy on the life of its 45-year-old vice-president, Warren. The annual cost per $1,000 of coverage for a person aged 45 to 49 is $1.80. If Warren has paid $25 toward the cost of the insurance, what is the cost of hte policy includible in Warren's gross income? 1) $278.00 2) $144.00 3) $54.00 4) $29.00 5) $0 Question 2 During 2019, Edward East had wages of...
Swifty Corporation completed the following merchandising transactions in the month of May. At the beginning of...
Swifty Corporation completed the following merchandising
transactions in the month of May. At the beginning of May, the
ledger of Swifty Corporation showed Cash of $5,000 and Common Stock
of $5,000.
May 1
Purchased merchandise on account from Gray's Wholesale Supply
$4,100, terms 2/10, n/30.
2
Sold merchandise on account $2,400, terms 1/10, n/30. The cost
of the merchandise sold was $1,400.
5
Received credit from Gray's Wholesale Supply for merchandise
returned $300.
9
Received collections in full, less discounts,...
The following are selected ledger accounts of Sunland Corporation at December 31, 2020. Cash Inventory Sales...
The following are selected ledger accounts of Sunland Corporation at December 31, 2020. Cash Inventory Sales revenue Unearned sales revenue Purchases Sales discounts Purchase discounts Selling expenses Accounting and legal services Insurance expense (office) Advertising expense Delivery expense Depreciation expense (office equipment) Depreciation expense (sales equipment) $210.900 609,900 4,873,500 133,380 3,176,040 38,760 30,780 78,660 37,620 27,360 61,560 106,020 54.720 41,040 Salaries and wages expense (sales) Salaries and wages expense (office) Purchase returns Sales returns and allowances Freight-in Accounts receivable Sales...
[20] Bob, a calendar-year, cash-basis taxpayer, owns an insurance agency. Bob has four people selling insurance...
[20] Bob, a calendar-year, cash-basis taxpayer, owns an insurance agency. Bob has four people selling insurance for him. The salesmen incur ordinary and necessary meal and entertainment expenses for which Bob reimburses them monthly. During the current year, Bob reimbursed his agents $10,000 for meals and $26,000 for entertainment. How much of the reimbursement can Bob deduct for meal and entertainment expenses on his current-year federal income tax return? A. $5,000 B. $8,000 C. $30,800 D. $36,000 [21] In January...
Question 3 At the beginning of the current season on April 1, the records of Flint Pro Shop showed Cash $3,410; In...
Question 3 At the beginning of the current season on April 1, the records of Flint Pro Shop showed Cash $3,410; Inventory $3,500; and Common Stock $6,910. The following transactions occurred during April 2017 Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,600. 9 Received credit from Arnie Co for merchandise returned $500. 10 Sold merchandise on account to members $1,320. The merchandise sold had a cost of $730. 12 Purchased golf shoes, sweaters, and...
1. Taxpayer Info: Star Corp. is a calendar-year, accrual-method C corporation that sells inventory. During 2018,...
1. Taxpayer Info: Star Corp. is a calendar-year, accrual-method C corporation that sells inventory. During 2018, Star Corp had gross sales of $300,000,000 and returns of $10,000,000. At the beginning of the year, Star Corp. had $20,000,000 worth of inventory. During the year, Star Corp. purchased $105,000,000 worth of inventory. Star Corp. had end of year inventory worth $25,000,000. What is Star Corp.'s cost of goods sold? 2. Same facts as previous question. What is the amount of Star Corp.'s gross...
1. Taxpayer Info: Star Corp. is a calendar-year, accrual-method C corporation that sells inventory. During 2018, Star Co...
1. Taxpayer Info: Star Corp. is a calendar-year, accrual-method C corporation that sells inventory. During 2018, Star Corp had gross sales of $300,000,000 and returns of $10,000,000. At the beginning of the year, Star Corp. had $20,000,000 worth of inventory. During the year, Star Corp. purchased $105,000,000 worth of inventory. Star Corp. had end of year inventory worth $25,000,000. What is Star Corp.'s cost of goods sold? 2. Same facts as previous question. What is the amount of Star Corp.'s...
Question 21 (2 points) Tungsten Corporation, a calendar year cash basis taxpayer, made estimated tax payments of $800 each quarter in 2019, for a total of $3,200. Tungsten filed its 2019 tax return in 2020 and the return showed a tax liability $4,200. When it filed its tax return in 2020, Tungsten paid an additional $1,000 in Federal income taxes. How does the additional payment of $1,000 impact Tungsten's E & P? Increase by $1,000 in 2019. Increase by $1,000...
Reed Corporation, an accrual basis taxpayer, reports the
following results for the current year:
Income: $ 290,000 16,000 5,000 9,000 140,000 4,000 Gross profit from manufacturing operations Dividends received from 25%-owned domestic corporation Interest income: Corporate bonds Municipal bonds Proceeds from life insurance policy on key employee Section 1231 gain on sale of land Expenses: Administrative expenses Bad debts Depreciation: 100,000 7,000 70,000 82,000 34,000 46,000 13,000 4,000 2,000 34,100 300 Financial accounting Taxable income Alternative depreciation system (for E...
Swifty Corporation completed the following merchandising
transactions in the month of May. At the beginning of May, the
ledger of Swifty Corporation showed Cash of $5,000 and Common Stock
of $5,000.
May 1
Purchased merchandise on account from Gray's Wholesale Supply
$4,100, terms 2/10, n/30.
2
Sold merchandise on account $2,400, terms 1/10, n/30. The cost
of the merchandise sold was $1,400.
5
Received credit from Gray's Wholesale Supply for merchandise
returned $300.
9
Received collections in full, less discounts,...
The following are selected ledger accounts of Sunland Corporation at December 31, 2020. Cash Inventory Sales revenue Unearned sales revenue Purchases Sales discounts Purchase discounts Selling expenses Accounting and legal services Insurance expense (office) Advertising expense Delivery expense Depreciation expense (office equipment) Depreciation expense (sales equipment) $210.900 609,900 4,873,500 133,380 3,176,040 38,760 30,780 78,660 37,620 27,360 61,560 106,020 54.720 41,040 Salaries and wages expense (sales) Salaries and wages expense (office) Purchase returns Sales returns and allowances Freight-in Accounts receivable Sales...
Question 3 At the beginning of the current season on April 1, the records of Flint Pro Shop showed Cash $3,410; Inventory $3,500; and Common Stock $6,910. The following transactions occurred during April 2017 Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,600. 9 Received credit from Arnie Co for merchandise returned $500. 10 Sold merchandise on account to members $1,320. The merchandise sold had a cost of $730. 12 Purchased golf shoes, sweaters, and...
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