Select the best answer.A cash-basis taxpayer deposited $10,000 in a savings account on October 15, 2021. Her account was credited for$10 of interest in 2021 and $100 of interest in 2022. She withdrew the entire $10,110 on December 31, 2022. Howmuch of this interest is taxable in 2022?Oquestion Q 6A. $0B. $10C. $100D. $110Submit Answers93% CompleteExit & Resum

In income tax, the cash basis of accounting is a method of recognizing income and expenses based on…

Answered: A cash-basis taxpayer deposited $10,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5. Lia is a cash basis self-employed air-conditioning repairman with 2022 gross business receipts of P2,000,000. Lia's cash disbursement were as follows: Air conditioning parts 250,000 Facebook Advertisement 20,000 Estimated national income taxes on self-employment income 10,000 Internet bill 34,000 Allowed charitable contribution 170,000 What amount should Lia declare as taxable income? A. P1,516,000 B. P1,526,000 C. P1,526,400 D. P1,686,000
Which exemptions are available for IHT”? 2) Small gifts exemption: During the tax year 2020/21, Peter made the following gifts: 1)On 18 May 2020, he made a gift of £240 to his son. 2)On 5 October 2020, he made a gift of £400 to his daughter. 3)On 20 March 2021, he made a gift of £100 to a friend. Specify the chargeability to IHT.
For a 24-year-old taxpayer with two dependents who is qualified to use the filing status of "head of household," what is the California AGI that will cause him to be required to file a tax return for 2022? a. $41,988 • b. $46,171 c. $58,724 • d. $40,000 Answer: a. $41,988
12. Taxpayer, age 63 and single, received current year income as set out below Wages $ 25,000 Taxable interest income 3,000 Tax-exempt interest income 5,000 Social Security benefits 36,000 How much, if any, of Taxpayer's Social Security benefits will be taxable for the year? A $ 36,000 B 18,000 с 30,600 D 18,950 E None of the above
Question 16 In 2020, Len has a salary of $40,700 from his job. He also has interest income of $400. Len is single and has no dependents. During the year, Len sold stock held as an investment for a $10,000 loss. Calculate the following amounts for Len: a. Adjusted gross income b. Standard deduction c. Taxable income d. Tax liability e. Explain the tax treatment of the loss from the stock sale
What is the maximum amount of IRA contribution that may be made by a 60 year-old eligible taxpayer in \$ 2023 ? \$ A. \$ \\$ 2,000 \$ B. \$ \\$ 6,500 \$ C. \$ \\$ 7,500 \$ D. \$ \\$ 13,000 \$
A resident citizen has the following data for a taxable year: Ordinary income P300,000 Ordinary loss 50,000 Interest income on bank deposit 10,000 Capital gains (Assets held for 6 months) 20,000 Capital gains (Assets held for 3 years) Capital loss (Assets held for 7 months) 30,000 40,000 Determine the amount of taxable net income.
Question 13: Louisa is an employee of Maroon Corp. Louisa files as Married Filing Jointly on her tax return. Over what amount will Maroon Corp. begin to withhold the additional Medicare tax from her earnings? Answer: A. SO В. O $125.000 C. O $200,000 D. $250,000
6. A taxpayer sells a vacation home in 2019 for $150,000 that has an adjusted basis $115,000. The purchaser pays cash of $30,000, assumes the existing mortgage of $110,000, and signs an installment note for the remaining $10,000 plus interest. What is the amount of the total contract price? 6. O a. $30,000 o b. $40,000 Oc. $115,000 o d. $150,000
On January 1, 2022, Kunto, a cash basis taxpayer, pays $160,873 for a 24-month certificate of deposit. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives $174,000. Round all calculations to the nearest dollar. a. Compute Kunto's gross income from the certificate for 2022. b. Compute Kunto's gross income from the certificate for 2023.
Determine the effects of the following on a cash basis taxpayer's gross income for 2023 and 2024. If an amount is zero, enter "0". Gross Income2023 Gross Income2024 a. On the morning of December 31, 2023, the taxpayer received a $1,500 check from a customer. The taxpayer did not cash the check until January 3, 2024. $fill in the blank 1 $fill in the blank 2 b. On the morning of December 31, 2023, the taxpayer received a $1,500 check from a customer. The customer asked the taxpayer not to cash the check until January 3, 2024, after the customer's salary check could be deposited. $fill in the blank 3 $fill in the blank 4 c. On December 31, 2023, the taxpayer received a $1,500 check from a customer. The check was not received until after the bank had closed on December 31, 2023. The taxpayer did not cash the check until January 3, 2024.
16. Wyatt Industries, an accrual-method and calendar year taxpayer, paid $12,000 in real estate taxes on October 1, 2021, covering the period October 1, 2021, to September 30, 2022. The amount of real estate taxes Wyatt can deduct as a business expense in 2021 is: a. b. C. d. e. $12,000. $6,000. $3,000. $0. none of the above.

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A cash-basis taxpayer deposited $10,000 in a savings account on October 15, 2021. He $10 of interest in 2021 and $100 of interest in 2022. She withdrew the entire $10,110 or much of this interest is taxable in 2022? O A. $0 OB. $10 C. $100 D. $110