Al is a medical doctor who conductshis practice as a sole proprietor. During2022, he received cash of $357,000 formedical services. Of the amountcollected, $40,800 was for servicesprovided in 2021. At the end of 2022,Al had accounts receivable of $99,900,all for services rendered in 2022. Inaddition, at the end of the year, Alreceived $9,500 as an advancepayment from a health maintenanceorganization (HMO) for services to berendered in 2023.Question Content Areaa. Compute Al's gross income for 2022using the cash basis of accounting.b. Compute Al's gross income for 2022using the accrual basis of accounting.

Under Cash basis of accounting, the income is recorded when the amount or cash is received. Under…

Answered: Al is a medical doctor who conducts his…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Pastor Bingham retired in December 2020. prior to his retirement he received the following: an annual salary of $64,000 that includes $24,000 designated as housing allowance $5312 reported on form 1099 NEC for his duties as a chaplain at the prison and $912 in a retirement collection taken up on his behalf. which of these amount is excluded from gross income for purposes of federal income tax? 1) $912 2) $5,312 3) $24,000 4) $64,000
Alton Newman, age 67, is married and files a joint return with his wife, Clair, age 65. Alton and Clair are both retired, and during 2019, they received Social Security benefits of $10,000. Both Alton and Clair are covered by Medicare. Alton's Social Security number is 111-11-1119, and Clair's is 123-45-6786. They reside at 210 College Drive, Columbia, SC 29201. Alton, who retired on January 1, 2019, receives benefits from a qualified pension plan of $2,750 a month for life. His total contributions to the plan (none of which were deductible) were $168,250. In January 2019, he received a bonus of $2,000 from his former employer for service performed in 2018. No income taxes were withheld on this bonus by his former employer (Amalgamated Industries, Inc.; EIN 12-3456789; 114 Main Street, Columbia, SC 29201). Although Amalgamated Industries, Inc., accrued the bonus in 2018, it was not paid until 2019. Clair, who retired on December 31, 2018, started receiving benefits of $1,400 a month on…
For calendar year 2023, Giana was a self-employed consultant with no employees. She had $80,000 of net profit from consulting and paid $7,000 in medical insurance premiums on her policy covering 2023. How much of these premiums may Giana deduct as a deduction for AGI? As an itemized deduction? If an amount is zero, enter "0". Self-employed persons can deduct fill in the blank 1 % of their medical insurance premiums as a deduction for AGI in 2023. Thus, Giana may deduct $fill in the blank 2 as a deduction AGI and she may deduct $fill in the blank 4 as an itemized deduction (subject to the AGI floor).
In 2019, Margaret and John Murphy (both over age 65) are married taxpayers who file a joint tax return with AGI of $26,100. During the year they incurred the following expenses: Medical insurance premiums $1,300 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized 400 Medical care lodging (two people, one night) 65 Hospital bills 2,100 Doctor bills 850 Dentist bills 200 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 80 miles for medical transportation, and their insurance company reimbursed them $800 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy’s medical expense deduction.
Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2019, Susan’s income is $41,214 and Stan’s is $12,000 and both are self-employed. They also have $500 in interest income from tax-exempt bonds. The Collins enrolled in health insurance for all of 2019 through their state exchange but did not elect to have the credit paid in advance. The 2019 Form 1095-A that the Collins received from the exchange lists the following information:Annual premiums $9,800Annual premium for the designated silver plan in the state $10,800 Compute the Collins’ premium tax credit for 2019.
Michael, a calendar year taxpayer, pays $10,000 in medical expenses in 2022. He expects $6,000 of these expenses to be reimbursed by an insurance company in 2023. His medical expense deduction for 2022: a. is $10,000 b. is $4,000 c. depends on the likelihood of reimbursement, and will be $4,000 if the likelihood of reimbursement is "more likely than not" d. Is $0 since he must take the deduction in the year in which he received the reimbursement.
Alicia has been working for JMM Corp. for 33 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM she is to receive 2 percent of the average salary of her three highest years of compensation from JMM. She retired on January 1, 2019. Before retirement, her annual salary was $609,000, $639,000, and $669,000 for 2016, 2017, and 2018. What is the maximum benefit Alicia can receive in 2019?
Kathy is 60 years of age and self-employed. During 2022 she reported $117,000 of revenues and $43, 400 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to a SEP IRA for 2022 ?
Smithers is a self-employed individual who earns $27,000 per year in self-employment income. Smithers pays $1,850 in annual health insurance premiums (not through an exchange) for his own medical care. In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI deduction and where the premiums are deductible. Please all parts including a,b,c, and d. The previous expert did nota. Smithers is single and the self-employment income is his only source of income(deductible as for AGI deduction only, deductible as an itemized deduction only. deductible as either a for AGI or itemeized deduction or not deductible)?Amount? b. Smithers is single, but besides being self-employed, Smithers is also employed part time by SF Power Corporation. This year Smithers elected not to participate in SF's health plan.(deductible as for AGI deduction only, deductible as an itemized deduction only. deductible as either a for AGI or itemeized…
For calendar year 2019, Jon and Betty Hansen (ages 59 and 60) file a joint returm reflecting AGI of $280,000. They incur the following expenditures: Medical expenses before 10% of AGI floor $30,000 Casualty loss caused by electrical fire in their home 30,000 Interest on home mortgage 11,000 Interest on credit cards 800 Property taxes on home 13,000 Charitable contributions 17,000 State income tax 15,000 Tax return preparation fees 1,200 What is the amount of itemized deductions the Hansens may claim?
Alicia has been working for JMM Corporated for 32 years. Alicia participates in JMM’s defined benefit plan. Under the plan, for every year of service for JMM, she is to receive 2 percent of the average salary of her three highest consecutive calendar years of compensation from JMM. She retired on January 1, 2021. Before retirement, her annual salary was $570,000, $600,000, and $630,000 for 2018, 2019, and 2020. What is the maximum benefit Alicia can receive in 2021?
Reggie, who is 55, had AGI of $36,400 in 2022. During the year, he paid the following medical expenses: Drugs (prescribed by physicians) Marijuana (prescribed by physicians) Health insurance premiums-after taxes Doctors' fees Eyeglasses Over-the-counter drugs $585 1,485 1,300 1,335 460 285 Required: Reggie received $585 in 2022 for a portion of the doctors' fees from his insurance. What is Reggie's medical expense deduction?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS