Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Chapter 6, Problem 2P
To determine
Introduction:A taxpayer is required to report taxable income using the method of accounting regularly used by the taxpayer for maintaining records and the method that clearly reflects the taxpayer’s income. The recognized methods are accrual method, cash receipt method and hybrid method of accounting.
The income from business in the calendar year.
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Yolanda is a cash basis taxpayer with the following transactions during the year:
Cash received from sales of products $66,000
Cash paid for expenses (except rent and interest) 40,000
Rent prepaid on a leased building for 18 months 45,000 beginning December 1
Prepaid interest on a bank loan, paid on 5,000 December 31 for the next 3 months
Calculate Yolanda’s income from her business for this calendar year.
Sales income $_____________
Expenses:
Other than rent and interest $______________
Rent $_____________________
Interest $__________________
Net income $_______________
Yolanda is a cash basis taxpayer with the following transactions during the year:
Cash received from sale of products
$70,000
Cash paid for expenses (except rent and interest)
40,000
Rent prepaid on a leased building for 18 months beginning December 1
48,600
Prepaid interest on a bank loan, paid on December 31 for the next 3 months
5,000
Calculate Yolanda's income from her business for this calendar year.
If an amount is zero, enter "0". If required, in your computations round any division to five decimal places and round final answers to the nearest dollar.
Sales income
Expenses:
Other than rent and interest
Rent
Interest
Net income
please answer do not image format
Yolanda is a cash basis taxpayer with the following transactions during the year:
Cash received from sale of products
$66,000
Cash paid for expenses (except rent and interest)
40,000
Rent prepaid on a leased building for 18 months beginning December 1
45,000
Prepaid interest on a bank loan, paid on December 31 for the next 3 months
5,000
Calculate Yolanda's income from her business for this calendar year.
If an amount is zero, enter "0". If required, in your computations round any division to five decimal places and round final answers to the nearest dollar.
Sales income
$
Expenses:
Other than rent and interest
Rent
Interest
Net income
$
Chapter 6 Solutions
Income Tax Fundamentals 2020
Ch. 6 - E Corporation is a subchapter S corporation owned...Ch. 6 - Income and loss from which of the following...Ch. 6 - Which of the following entities is likely to have...Ch. 6 - Which of the following is an acceptable method of...Ch. 6 - Which of the following entities is required to...Ch. 6 - Prob. 6MCQCh. 6 - B Corporation, a calendar year-end, accrual basis...Ch. 6 - Prob. 8MCQCh. 6 - Prob. 9MCQCh. 6 - Prob. 10MCQ
Ch. 6 - Prob. 11MCQCh. 6 - Prob. 12MCQCh. 6 - For 2019, Roberta is a self-employed truck driver...Ch. 6 - Prob. 14MCQCh. 6 - Prob. 15MCQCh. 6 - Which of the following employees would not be...Ch. 6 - Prob. 17MCQCh. 6 - Prob. 18MCQCh. 6 - Prob. 19MCQCh. 6 - Christine and Doug are married. In 2019, Christine...Ch. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Geraldine is an accrual basis taxpayer who has the...Ch. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Refer to the previous problem 8. If Stan's parents...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Otto and Monica are married taxpayers who file a...Ch. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Sally hires a maid to work in her home for $280...Ch. 6 - Prob. 18PCh. 6 - Rachel is single and has wages of $150,000 and...Ch. 6 - Married taxpayers Otto and Ruth are both...
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