If a taxpayer chooses to have his dividends automatically reinvested in the corporation's stock, they are not reported on the tax return nor taxed because he did not receive the money. Choose one a. True answer. b. False Which of the following items is generally not taxable on a Federal return? Choose one a. Income from illegal activity answer. b. Inheritance c. Fees received for jury duty d. Tips under $20 a month e. None of these

If a taxpayer chooses to have his dividends automatically reinvested in the corporation's stock, they are not reported on the tax return nor taxed because he did not receive the money. Choose one a. True answer. b. False Which of the following items is generally not taxable on a Federal return? Choose one a. Income from illegal activity answer. b. Inheritance c. Fees received for jury duty d. Tips under $20 a month e. None of these

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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Alicia and Marie own a vacation home at the beach. During the year, they rented the house for 42 days (six weeks) at $890 per week and used it for personal use for 58 days. The total costs of maintaining the home are as follows: Hortgage interest Property taxes Insurance utilities Repairs Depreciation Required: a. What is the proper tax treatment of this information on their tax return using the Tax Court method? Note: Use 365 days in a year. Round your intermediate computations to 5 decimal places and final answers to nearest whole dollar value. Income Mortgage interest Property taxes Insurance Uits Repairs Show Transcribed Text Repairs Depreciation Net income $ Tex court method IRS method Schedule E $4,200 700 1,200 3,200 1,900 5,500 Direct allocation method i Appropriation method Oral mathe Schedule A b. Are there options available for how to allocate the expenses between personal and rental use? Note: You may select more than one answer. Single click the box with the question mark…
Which of the following differences between financial accounting and tax accounting ordinarily creates a deferred tax liability? A) Interest income on municipal bonds. B) Advanced payment from clients C) Prepaid utilities. D) None of these answer choices are correct. O A O Oo O
Tax laws, being imposition of burden, shall be strictly construed against: * A person who refuses to pay the tax The taxpayer The government Either the taxpayer or the government, depending on the evidence presented
12. Nicanor failed to file his delinquent tax on time. The government collecting agency has commenced summary remedies to collect the tax. Nicanor's real property was levied and taken by the government to satisfy his tax liabilities. This is an exercise of: a. Police power b. Power of eminent domain c. Power of expropriation d. Power of taxation 13.1st statement - The police power can only be exercised by the State. 2nd statement – The power to tax can only be exercised by the State. 3rd statement - The power of eminent domain can only be exercised by the State. Which is FALSE? a. Only the 1st statement b. Only the 2nd statement c. Only the 3rd statement d. None of the statements 14.. Which is NOT a constitutional limitation on the power of taxation? a. Application of the same law with the same taxapayers b. No person shall be imprisoned for non-payment of tax c. The requirement of notice and hearing in assessment d. The state, unless declared void by the courts, cannot renege on its…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Tax preparers often have a difference of opinion with their clients as to how some transactions should be treated on a tax return. If a client of yours does not wish to report information on their tax return that you feel should be reported, how would you handle the situation? Write in at least 300 words with two scholarly sources.
Assume your client wants to include travel and entertainment expenses in their tax deductions. Explain the type of documentation needed to support your client’s claim for including travel expense as business expense.Provide a circumstance where such a claim could trigger an IRS audit. Make sure you support your argument with clear tax rules and regulations.Your client is claiming the concert tickets he purchased as a business expense.Use your understanding of the tax laws to explain a situation where your client can claim the expense deduction as a business expense and another example where your client cannot.
Which is false? a. The estate tax is computed based on the net estate or taxable estate. b. The net estate is determined by subtracting from the gross estate the deductions authorized by law. C. Both a" and D d. Neither a" nor "b"
Identify the following statement that is false. a. If an employer is not required to withhold income taxes from an employee’s wages, the wages are not taxable to the employee. b. In certain situations, income tax withholding by an employer is voluntary. c. An employer must deposit with the government an amount of FICA tax that is twice the amount withheld from the employee’s salary (i.e., the employee’s and employer’s shares). d. If an excess amount of FICA is withheld for an employee because the employee has multiple jobs, the employee may claim a credit for the excess amount withheld on his or her income tax return.
Which of the following is FALSE with respect to the final tax returns of deceased taxpayers? Multiple Choice Unused net capital losses less any capital gains deductions previously claimed are deductible against any income. Non-refundable tax credits are prorated to the date of death on the final tax return. A Ríghts or Things return may be filed in addition to the final tax return. Of the tax returns available for a cleceased taxpayer, only the final tax return must be filed.
a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true