• Alex owns a roofing company andbuys a computer for personal usage.He sometimes uses the computerfor the company, but his childrenare the primary users of thecomputer, although he does use itfor his roofing companyoccasionally. Can the computer berecorded as an asset in theaccounting records of Alex's roofingpractice? Explain why or why not?

Accounting records are any documents required to produce a company's financial accounts. According…

Answered: Alex owns a roofing company and buys a…

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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Andrew and Rachel occasionally use an online rental platform to advertise and rent their personal residence when they travel out of town. they rented their home for a total of twelve days during the year. how do Andrew and Rachel report this rental income and any allocable expenses on their tax return
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Aubrey owns an office supply store. She borrowed $100,000 from U.S. Bank ("USB") and executed a security agreement granting a security interest in "all of my presently- owned and after-acquired inventory" to USB. USB properly filed a financing statement to perfect its interest. Without notifying USB, Aubrey sold a computer from her inventory to Nissa for use in her home. Does USB have priority over Nissa with respect to the computer purchased by Nissa? Explain. S S D wwww...
Bill purchased a computer for his business. Bill paid $2,610 for the computer plus $196 for sales tax. He paid $300 for the computer to be set up in his office. When Bill filed his tax return, his tax preparer used Section 179 to expense the cost. What is Bill's adjusted basis in the computer? 1. $3,106 2. $2,806 3. $2,610 4. $0
3
Nanji
Can you help me with some tips Question? Imagine you are a deciding Judge for the following scenario. Decide who should win the case including the reasoning for the decision? 1. Chip bought an insurance policy on his house from Insurance Co. The policy covered damage from fire but explicitly excluded coverage for harm caused “by or through an earthquake.” When an earthquake struck, Chip’s house suffered no fire damage but the earthquake caused a building some blocks away to catch on fire. That fire ultimately spread to Chip’s house, burning it down. 2. Is Insurance Co. liable to Chip? 3. Argument for Insurance Co.: The policy could not have been clearer or more explicit. If there had been no earthquake, Chip’s house would still be standing. The policy does not cover his loss. Argument for Chip: His house was not damaged by an earthquake, it burned down. The policy covered fire damage. If a contract is ambiguous, it must be interpreted against the drafter of the contract.
Cindy operates a computerized engineering drawing business from her home. Cindy maintains a home office and properly allocates the following expenses to her office: Depreciation $1,500 Utilities 500 Real estate taxes 325 Mortgage interest (100 percent deductible) 500 a. Assume that Cindy earns income of $4,400 from her business for the year before deducting home office expenses. She has no other expenses associated with the business. Calculate Cindy's deduction for home office expenses. b. Assume that Cindy earns income of $2,600 from her business during the year before deducting home office expenses. Calculate Cindy's deduction for home office expenses.
David is an accountant for a small company. As such, he participates primarily in _________ activities ?
Jessica is a professional consultant. She agrees to consulting services for Joe for $2,000. After she finishes, Joe does not have cash to pay Jessica, but he has an antique, collectible baseball card with a fair market value of $2,000 that he gives her to satisfy the payment. The baseball card cost Joe $500. How much should Jessica include in her gross income?
Tammy comes home from her day job and usually spends a couple of hours every evening “managing” her stock portfolio on fidelity.com. Does this activity mean that Tammy is engaged in a “trade or business” for FIT purposes? (a) Yes, and therefore she should report her gains and losses on Schedule C, assuming that she made a proper and timely § 475(f) election. (b) No, and therefore she should report her gains and losses on Schedule B. (c) No, and therefore she should report her gains and losses on Schedule D. (d) No, and therefore she should report her gains and losses on Schedule E. (e) Actually she should just report the results of her yearly stock market activity as a single net dollar amount – positive or negative, as the case may be – on line 8 (“Other income”) of Form 1040, Schedule 1.
Joe Rezzo, a college student majoring in accounting, helped finance his education with a part-time job maintaining all accounting records for a small business, White Company, located near the campus. Upon graduation, Rezzo passed the CPA examination and joined the audit staff of a national CPA firm. However, he continued to perform all accounting work for White Company during his “leisure time.” Two years later, Rezzo received his CPA license and decided to give up his part-time work with White Company. He notified White that he would no longer be available after preparing the year-end financial statements. On January 7, Rezzo delivered the annual financial statements as his final act for White Company. The owner then made the following request: “Joe, I am applying for a substantial bank loan, and the bank loan officer insists upon getting audited financial statements to support my loan application. You are now a CPA, and you know everything that’s happened in this company and…

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