xercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring -3, 4-4] squire Comic Book Company had income before tax of $1,350,000 in 2021 before considering the following materi . Esquire sold one of its operating divisions, which qualified as a separate component according to generally accep principles. The before-tax loss on disposal was $375,000. The division generated before-tax income from operati beginning of the year through disposal of $570,000. . The company incurred restructuring costs of $90,000 during the year. equired: repare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income gnore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

You and your friend Amy, while discussing your tax class, were surprised to learn that a substantial amount of income goes unreported each year by taxpayers. When taxpayers do not report all their income, the missing income must be replaced by imposing higher taxes on current taxpayers. Consider a time when you were trying to decide whether something should be put on your income tax return or not. Explain the differences between tax avoidance and tax evasion, and discuss the rewards of tax avoidance and the penalties of tax evasion.

11) hy are capital gains typically taxed at a lower rate than income? Select an answer: It is difficult to calculate capital gains. Other taxes provide enough revenue for the government. People pay enough taxes already. The government wants people to invest.

A landlord who receives prepaid rent is required to report that amount as gross income when the payment is received. Why would Congress choose to do this? What problem does this create for the taxpayer? C O A. Congress taxes prepaid rental income due to the concern that taxpayers who spend the money will be unable to pay the tax when t comes due. The problem created for taxpayers is that they are taxed before they incur related expenses, such as repairs, insurance, and depreciation. Therefore, there is a mismatching of revenue and expense. O B. O C. Congress taxes prepaid rental income to collect more taxes from a taxpayer by increasing their tax bracket with the additional income. The problem this causes for the taxpayer is inconsistent taxable income from year to year and increases the risk of an audit. O D. Congress taxes prepaid rental income due to numerous landlords not reporting this income in the following tax year. The problem created for taxpayers is that they are taxed…