a. $1,352 repayment of a loan from an employee. Besito loaned $1,300 to the employee six months ago, and the employee repaid the loan with interest. b. $1,400 deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment. c. $11,600 short-term loan from a local bank. Besito gave the bank a written note to repay the loan in one year at 4 percent interest. d. $592 prepaid rent from the customer described in part (b). The rent is $8 per day for the 74-day period from December 17 through February 28. For all requirements, leave no cells blank-be certain to enter "0" wherever required. a Taxable income b Taxable income Taxable income Taxable income Amount
a. $1,352 repayment of a loan from an employee. Besito loaned $1,300 to the employee six months ago, and the employee repaid the loan with interest. b. $1,400 deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment. c. $11,600 short-term loan from a local bank. Besito gave the bank a written note to repay the loan in one year at 4 percent interest. d. $592 prepaid rent from the customer described in part (b). The rent is $8 per day for the 74-day period from December 17 through February 28. For all requirements, leave no cells blank-be certain to enter "0" wherever required. a Taxable income b Taxable income Taxable income Taxable income Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: acc
Transcribed Image Text:Besito Company, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following
cash payments. To what extent does each payment represent current taxable income to Besito?
Required:
a. $1,352 repayment of a loan from an employee. Besito loaned $1,300 to the employee six months ago, and the employee repaid the
loan with interest.
b. $1,400 deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer
returns the undamaged equipment.
c. $11,600 short-term loan from a local bank, Besito gave the bank a written note to repay the loan in one year at 4 percent interest.
d. $592 prepaid rent from the customer described in part (b). The rent is $8 per day for the 74-day period from December 17 through
February 28
For all requirements, leave no cells blank- be certain to enter "0" wherever required.
a Taxable income
b Taxable income
Taxable income
Taxable income
Amount
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