Stanton Inc. is a calendar year, cash basis taxpayer. Stanton Inc. decides to change to the accrual method of accounting for the current year. Net income for this year under the accrual basis was $600,000 before any adjustments. On December 31 of last year, the balances in accounts receivable and accounts payable were $35,000 and $42,000, respectively. What is Stanton's current year "adjusted" net income? What are Stanton's reporting options?

! Required information [The following information applies to the questions displayed below.] Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are taxable income to Jeremy this year if Jeremy is (1) a cash-method taxpayer and (2) an accrual-method taxpayer. (Leave no answers blank. Enter zero if applicable.) b. $800 from the Ladies' Club for leasing the trailer from December of this year through March of next year ($200 per month). Income under cash method Income under accrual method

In the process of using the net worth method, ou find that the reported taxable income of a person is $92,000 and overall personal expenes are $61,000.  The net worth you calculate through various records at year end is $611,000 while the net worth amount at the beginning of the year is $430,000.  Any unexplained net worth increase or decrease would be?

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Required information [The following information applies to the questions displayed below.] Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of this year. Indicate the amount of these payments that she may deduct this year under both the cash method of accounting and the accrual method of accounting. (Leave no answers blank. Enter zero if applicable.) d. $1,500 for interest on a short-term bank loan relating to the period from November 1 of this year, through March 31 of next year. Deductible Amount Cash method Accrual method $ 0

Taxpayer started a calendar-year business on 1 August 2020. On that date, Taxpayer paid $9,600 in rent for the period 1 August 2020 through 31 July 2021. Determine the maximum amount that Taxpayer may deduct in 2020 under both the cash and accrual methods of accounting.

Drake Appliance Company, an accrual basis taxpayer, sells home appliances and service contracts. Determine the effect of each of the following transac-tions on the company’s 2019 gross income assuming that the company uses any available options to defer its taxes.a. In December 2018, the company received a $1,200 advance payment from a customer for an appliance that Drake special ordered from the manufacturer. The appliance did not arrive from the manufacturer until January 2019, and Drake immediately delivered it to the customer. The sale was reported in 2019 for financial accounting purposes.b. In October 2019, the company sold a 6-month service contract for $240. The company also sold a 36-month service contract for $1,260 in July 2019.c. On December 31, 2019, the company sold an appliance for $1,200. The company received $500 cash and a note from the customer for $700 and $260interest, to be paid at the rate of $40 a month for 24 months. Because of the customer’s poor credit…

8. Youngstown Decking is an accrual basis taxpayer. On July 1, 2022, Youngstown paid $22,800 cash for a comprehensive liability and property insurance policy that covers a 24-month period. The deduction for insurance expense for 2022 is: a.$11,400. b.$22,800. c.$6,650. d.$5,700. e.$950.

Using the facts below, determine Prance’s 2019 deferred tax expense and any deferred tax asset or liability. Facts: Prance, Inc., earns pretax book net income of $800,000 in 2019. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. tax rate is 21%, and Prance earns an after- tax rate of return on capital of 8%. Prance’s current income tax expense for the year = $151,200

67. On November 1 of this year, Jaxon borrowed $50,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid interest of $4,500 re- lating to the 12-month period from November of this year through October of next year. a) How much interest, if any, can Jaxon deduct this year if his business uses the cash method of accounting for tax purposes? b) How much interest, if any, can Jaxon deduct this year if his business uses the accrual method of accounting for tax purposes? LO 1-4