Joel received a 1099-C; S6000 in box 2 had been cancelled by credit card co. as result of agreement. Original card debt was $14,000. Is $8,000 excluded from income? For what reason (Form 982) ? He is not insolvent, ;but was unemployed for part of the year and received unemployment.
Q: Anderson Publishing has two divisions: Book Publishing and Magazine Publishing. The Magazine…
A: It is the process of making decisions that involve the management of costs to achieve long-term…
Q: he answer is 1,130.55
A: Present value after the cash flow becomes constant = [1/(1+r)n] X [constant cash flow/r]wherein, n =…
Q: Paradise Hills Berry Farm has 23 employees who are paid biweekly. The payroll register showed the…
A: A journal entry is being used to record a business deal in a company's accounting records. A journal…
Q: Rave Reviews Company has two service departments (Cafeteria and Human Resources) and two production…
A: The service costs are allocated to the production departments using different methods as direct,…
Q: Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: Jordan believes that she needs to obtain a discharge in bankruptcy through an individual's repayment…
A: It is a legal proceeding involving a person or a business as the party is unable to repay the…
Q: Estimate the ending inventory as of December 31, 2024. Estimated ending inventory at retail…
A: At first we need to compute the cost to retail percentage for Billingsly Products. Ending inventory…
Q: Happy Valley Pet Products uses a standard costing system that applies overhead to products based on…
A: The variance is the difference between the standard and actual production data. The volume variance…
Q: Carla Vista Products purchased a machine for $66400 on July 1, 2025. The company intends to…
A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear.There are…
Q: Dollar Company incurred the following costs while producing 610 units: direct materials, $6 per…
A: Absorption costing refers to the method of product costing in which the price of the product is…
Q: Pedroni Oil Company purchased packaging equipment on January 8 for $72,000. The equipment was…
A: Hi studentZince there are multiple questions, we will answer only first question.Depreciation…
Q: On June 3, Kauffman company purchased inventory of $4,000 on account with terms 1710, h/30. On June…
A: Journal EntryA journal entry is a method of recording transactions in the book of original entry by…
Q: Lydex Company’s financial statements for the last two years are as follows: Lydex Company…
A: To compute the provided financial ratios, we'll use the following formulas:Average Collection…
Q: Jones Company produces three products: X, Y, and Z. They each use the same machine, so machine hours…
A: When there are multiple products but only one key factor:-Step 1:- Rank the product on the basis of…
Q: Record the following transactions by the cost method. (List all debit entries before credit entries.…
A: Treasury stocks are repurchased shares of the company. The company has the power to reissue these…
Q: Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in…
A: Futher processed or sold decision means ,we have to choose between selling a product now or…
Q: The account balances for KinderMorgan are listed below. All balances are as of December 31, 2022,…
A: DEBT TO EQUITY RATIODebt to Equity Ratio is the ratio between total debt & total shareholder…
Q: Dividing Partnership Net Income Required: Steve Prince and Chelsy Bernard formed a partnership,…
A: Partnership is an agreement between two or more people who work together for a common…
Q: Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Incorporated, to…
A: A contribution margin income statement is an income statement that displays the contribution margin…
Q: Machine Cost #1 #2 $68,800 $76,000 Purchase Useful Date Life 7/1/24 1/1/27 5 yrs. 5 yrs. Salvage…
A: Straight-Line Method (SLM) and Double Declining Balance Method (DDB) are two common methods used for…
Q: Assume the beginning and ending balances in a company's Retained Earnings account were $380,000 and…
A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…
Q: Required (a) Explain the impact of the additional 20% purchase of DCA's ordinary share capital by…
A: The consolidated statement of changes in equity provides a comprehensive overview of how a company's…
Q: The following data are available for the most recent year of operations for Prest Products. The…
A: Master budget: It is a budget which is prepared at a fixed volume of production. Under this budget…
Q: Olive Company makes silver belt buckles. The company's master budget appears in the first column of…
A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…
Q: d. What is Kiyara's additional Medicare tax liability (include all earned income in computing the…
A: According to the question given, we need to compute the additional Medicare tax liability.Additional…
Q: Inventory records for Capetown, Incorporated revealed the following: Date April 1 April 20…
A: The inventory can be valued using the various methods as FIFO, LIFO and average method. Using LIFO,…
Q: Marin Company leased equipment from Costner Company, beginning on December 31, 2024. The lease term…
A: Journal Entry - It is record or each and every business transaction for particular period whether it…
Q: Several years ago Brant, Inc., sold $960,000 in bonds to the public. Annual cash interest of 9…
A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…
Q: (90,000) 126,000 $36,000 5 years $ (100,000) 138,000 $ 38,000 7 years $ (70,000) 105,000 $ 35,000 6…
A: Profitability index is the Present value of cashinflows divided the intital investment.
Q: the present value of using an interest rate of 5%, a. By successive computations, using the present…
A: When considering the opportunity cost of having money now rather than later, present value indicates…
Q: 1. 2. 3. 4. 5. (a) Year 2020 2021 Amount Due per Tax Return $128,400 109,000 On January 1, 2020,…
A: Estimated future tax made while preparing accounts. Deferred tax is estimated based on past and…
Q: Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two…
A: The reciprocal method is an algebraic method for cost allocation from service departments to…
Q: Cerulean Corporation is a regional and online golf equipment retailer. The company reported the…
A: A Cash flow statement is a financial statement that provides the summarised information regarding…
Q: a. The payment of cash for the purchase of office equipment of $15,000 was debited to Land for…
A: Journal entries are those which are recorded for every transaction which takes place during the…
Q: Simon Company's year-end balance sheets follow. At December 31 Assets Cash Accounts receivable, net…
A: The account receivables turnover is calculated as the net sales divided by the average account…
Q: 2. Brothers Inc. manufactures fidget spinner toy, Management is now preparing detailed budgets for…
A: Production budget is the statement prepared by the entity to determine the estimated units to be…
Q: Avenger's Inc. began operations on January 1 of the current year with a $25,000 cash balance. 40% of…
A: Answer:- The sales on the account means the sale is done on a credit basis. The amount of the credit…
Q: Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a…
A: ROA is a profitability ratio that assesses a company's capacity to produce income from its assets.…
Q: Required information The following data is provided for a PPP project. Benefits Disbenefits To the…
A: The Benefit-Cost Ratio (B/C ratio) is a financial metric used to evaluate the attractiveness of an…
Q: Net income Depreciation expense Accounts receivable increase (decrease) Inventory increase…
A: CASH FLOW STATEMENTCash flow statement provides additional information to user of financial…
Q: Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called…
A: Net Profit Margin is a ratio that shows the profit earned as a percentage of the sales made by the…
Q: 3. A tax lawsuit related
A: Journal entry is the process of documenting commercial transactions for the first time in the books…
Q: Sheffield Company obtained land by issuing 3,380 shares of its $10 par value common stock. The land…
A: Land is purchased against stock issued for consideration other than cash.JOURNAL ENTRIESJournal…
Q: Coronado Company's ledger shows the following balances on December 31, 2020. 3% Preferred Stock-$10…
A: Cumulative preference shares are those shares that are paid a dividend every year. If any dividend…
Q: West Coast Tours runs boat tours along the west coast of British Columbia. On March 5, 2023, it…
A: In straight line basis, depreciation is calculated by the depreciate asset in equal installments…
Q: The following is a partial list of account balances for the Fisherman's Supply at Accounts…
A: The net income of the business that remains after the necessary dividends are distributed to…
Q: Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two…
A: The indirect costs are allocated to the operating departments using different methods. The various…
Q: Exercise 13-19 (Algo) Public Charity [LO 13-3] The Let's Read organization is a public charity under…
A: Ogfine organizations that are classified as public charities are those that:- Are churches,…
Q: For each cost, indicate whether it would most likely be classified as direct materials, direct…
A: The costs may be classified as direct cost or indirect cost, product cost or period cost, committed…
Q: Accounts Receivable has a balance of $6,000, and the Allowance for Bad Debts has a credit balance of…
A: Allowance for bad debts in one of the methods of recognizing bad debts expense and writing off bad…
Step by step
Solved in 4 steps
- Sally is in the business of purchasing accounts receivable. Last year, Sally purchased an account receivable with a face value of $80,000 for $60,000. During the current year, Sally settled the account, receiving $65,000. Determine the maximum amount of the bad debt deduction for Sally for the current year. If an amount is zero, enter "0". Sally's basis in the account receivable is $fill in the blank 1 . Therefore, she has a bad debt deduction of $fill in the blank 2 and income of $fill in the blank 3 .! Required information [The following information applies to the questions displayed below.] Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) d. Clyde picked up the check in December, but the check could not be cashed immediately because it was postdated January 10. Amount to be included in gross incomeThis year William provided $4,200 of services to a large client on credit. Unfortunately, this client has recently encountered financial difficulties and has been unable to pay William for the services. Moreover, William does not expect to collect for his services. William has "written off " the account and would like to claim a deduction for tax purposes. (Leave no answers blank. Enter zero if applicable.) a. What amount of deduction for bad debt expense can William claim this year if he uses the accrual method? Deductible amount
- Brady is hired in 2021 to be the accountant for Anderson Manufacturing, a private company. At the end of 2021, the balance of Accounts Receivable is $29,000. In the past, Anderson has used only the direct write-off method to account for bad debts. Based on a detailed analysis of amounts owed, Brady believes the best estimate of future bad debts is $9,000. If Anderson continues to use the direct write-off method to account for uncollectible accounts, what adjustment, if any, would Brady record at the end of 2021? What adjustment, if any, would Brady record if Anderson instead uses the allowance method to account for uncollectible accounts?Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,450.Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Problem 5-53 Part-c (Algo) c. Paylate Corporation mailed the check to Clyde before the end of the year (and it was delivered before year-end). Although Clyde expected the bonus payment, he decided not to collect his mail until after year-end. Amount to be included in gross income - ________Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,450.Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Problem 5-53 Part-b (Algo) b. Paylate Corporation mistakenly wrote the check for $190. Clyde received the remaining $1,260 after year-end. Amount to be included in gross income - _______
- Required information [The following information applies to the questions displayed below.] In January of year 0, Justin paid $8,800 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. d. Instead of paying an insurance premium, Justin pays $8,800 to rent his business property from April 1 of year 0 throug March 31 of year 1. Deductible amountAron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000 on August 1. On December 31, Bank Enterprises determines the loan to be uncollectible. Larson had not paid anything toward the balance due on account. What is the journal entry recording the bad debt write-off?Joy incurs the following expenses in her business. When can she deduct the expenses if she uses the accrual method of accounting? the cash method? a. Joy rents an office building for 750 a month. Because of a cash flow problem, she is unable to pay the rent for November and December 2019. On January 5, 2019, Joy pays the 2,250 rent due for November, December, and January. b. Joy borrows 60,000 on a 1-year note on October 1, 2019. To get the loan, she has to prepay 6,200 in interest. c. Joy owes employees accrued wages totaling 20,000 as of December 31, 2019. The accrued wages are paid in the regular payroll on January 5, 2020. d. Joy purchases 2,400 worth of supplies from a local vendor. The supplies are delivered on January 29, 2019. They are fully used up on December 30, 2019. Because of unusual circumstances, a bill for the supplies arrives from the vendor on January 10, 2020, and is promptly paid. e. While at a trade convention, Joy purchases some pens and paperweights to send out as holiday gifts to her clients. She charges the 700 cost to her credit card in December 2019. She pays the credit card bill in January 2020.
- Sally is in the business of purchasing accounts receivable last year Sally purchased an account receivable with a face value of 83,000 for 60,000. During the current year, Sally settled the account, receiving 65,000. Determine the maximum amount of the bad debt deduction for Sally for the current year.Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,450.Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Problem 5-53 Part-d (Algo) d. Clyde picked up the check in December, but the check could not be cashed immediately because it was postdated January 10. Amount to be included in gross income - ________Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,450.Determine the amount Clyde should include in his gross income this year under the following circumstances. (Leave no answer blank. Enter zero if applicable.) Problem 5-53 Part-a (Algo) a. Paylate Corporation wrote the check and put it in Clyde’s office mail slot on December 30 of this year, but Clyde did not bother to stop by the office to pick it up until after year-end. Amount to be included in gross income - _______
