ACCT Week6m Homework ES

These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below.

Section 360-10-35-17 of the Code states that an impairment loss shall be recognized if the carrying value of a fixed asset is not recoverable and exceeds its fair value. The carrying value of the fixed asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and disposal of the asset. An impairment loss shall be measured by the amount by which the carrying value exceeds the fair value.

The family had a passive activity loss of $6,200 from their rental properties because the family

Taxable earnings are: Spouse A's income from the partnership and the part time soccer referee job is included. Spouse B's earned income from the job as a controller counts as taxable income. The quarterly dividend from company E also falls under the income heading on the 1040 form. The capital loss is also included under income. The interest from the municipal bond is considered tax exempt for federal standards.

Passive activity is an activity in which an investor can earn profit from an activity in which he/she does not physically participate, including rentals and limited partnerships. In this scenario the couple has one rental property from which they received revenue that can be classified as passive income. The passive income has generated a net loss of $6,200. Since the couple has hired a realty company to manage their rental property then the loss must be carried over to the following year. These losses are reported on Form 8582. The $44,000 profit earned from the sale of the third rental property also needs to be reported but will be taxed as Long Term Capital Gains and will be entered as “Other gains or (losses)” using Form 4797.

A2e. Passive Activity Gains and Losses The passive activity rules apply to Individuals, estates, trusts (other than grantor trusts), personal service corporations, and, closely held corporations. (IRS Publication 925) As defined by the IRS, a passive activity is a business activity in which the investor or business owner has the potential to profit but in which the individual does not materially or physically participate. A material participation in a business activity means that the individual participates on a "regular, continuous, and substantial" basis (as defined by the IRS). (Jean Murray, Passive Activity) The couple had two passive activities, both of which we rental activities. Per the IRS, A rental activity is a passive

Hooton, T., Bradley, S., Cardenas, D., Colgan, R., Geerlings, S., Rice, J., Nicolle, L. (2010).

Detailing how a human service organization focused on providing job skills to high school dropouts would address the following:

55-8     To the extent that evidence about one or more sources of taxable income is sufficient to eliminate any need for a valuation allowance, other sources need not be considered. Detailed forecasts, projections, or other types of analyses are unnecessary if expected future

The $320,000, on the other hand, is a fixed cost associated with the proposed addition.

ii. Using double- declining method, the first year ending balance of $6,404 is subtracted form the proceeds of the sale netting in a gain of $1,096 on the disposal. Once this is subtracted form the previous years depreciation $4,269, you get a total income statement impact of $3,173.

What is the thesis of Johnson’s essay? If it is stated directly, locate the relevant sentence or sentences. If it is implied, state the thesis in

A trade or businesses is considered a passive activity according to the IRC if the taxpayer does not materially participate in that respective trade or business. Any income or loss derived from the passive activity is to be treated as passive income/loss. Additionally the Code automatically classifies income/loss from most rental activities as passive, regardless of whether the taxpayer materially participated or not. Net losses generated from passive activities cannot offset income from portfolio or active income. If a taxpayer’s passive activities result in net income, then the income must be reported, but if they result in a net loss then the loss must be suspended until they generate passive income to offset the loss.

In this type of scoring , a total score is assigned to each essay question based on the teacher’s general impression or over all assessment.

The treatment of tax losses is a crucial part of The Basic Tax Equation (ITA 2007). A net loss is created when the annual gross income of a tax payer is less than their total deductions. As part of the basic tax equation, available tax losses are subtracted from net income to give the taxable income” (Alley, et al., 2014).