Find debt in which instance? Subject = Cost AccountNo taxable income is recognized from cancellation of debt in whichinstance?a. The taxpayer was solvent prior to the debt cancellation.b. The debt canceled was recourse debt.c. The canceled debt was for the taxpayer's second home.d. The debt cancellation was intended as a gift.

Taxation of Cancellation of Debt (COD)Generally, when debt is canceled, forgiven, or discharged, the…

Answered: Subject = Cost Account No taxable…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 10DQ

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For an accrual basis taxpayer, which of the following statements is TRUE regarding prepaid income? a.Group of answer choices b.Prepaid dues & subscriptions are recognized immediately c.Prepaid rent is recognized immediately d.Prepaid royalties are recognized when earned e.Prepaid interest is recognized as it is earned
vj subject-Accounting
Which of the following circumstances created a future taxable amount?
Personal expenses are deductions: a. for AGI b. always deductible. c. Deductions from AGI d. non of the above.
For each item listed below, indicate whether it involves a: a. permanent difference. b. temporary difference that will result in future deductible amounts (giving rise to deferred tax assets). c. temporary difference that will result in future taxable amounts (giving rise to deferred tax liabilities). 1. Rent is collected in advance from a tenant. Rent is taxable when received. 2. Warranty costs are accrued at the time of sale for accounting purposes, but are not deductible until paid for income tax purposes. 3. Interest revenue is recorded on municipal bonds. 4. Installment sales are recognized at the point of sale for accounting purposes, but when the cash is received for income tax purposes. 5. A loss contingency is expensed for accounting purposes. The…
Constructive receipt means the taxpayer has: Multiple Choice O O O O Earned the income. Accrued the income. Control of the income for his or her use. Earned the income and accrued the income.
19. If an individual renders services to a creditor who in consideration thereof cancels the debt, the cancellation of indebtedness may,amount to a: a. Gift С. Donation inter vivos b. Capital contribution d. Payment of income CS Scanned with CamScanner
Which of the following causes a temporary difference between taxable and pretax accounting income? A. Investment expenses incurred to generate tax-exempt income. B. MACRS used for depreciating equipment. C. The dividends received deduction. D. Life insurance proceeds received due to the death of an executive.
a. Define the term constructive receipt. Explain its importance. b. Explain three restrictions on the concept of constructive receipt. a. Define the term constructive receipt. Explain its importance. C O A. Under the concept of constructive receipt, income is taxed once earned but not received by the cash-basis taxpayer. The taxpayer cannot defer the tax by refusing to accept payment. OB. Under the concept of constructive receipt, income is taxed when it becomes available to the taxpayer. The taxpayer cannot defer the tax by refusing to accept payment. O C. Under the concept of constructive receipt, income is taxed once earned and received by the cash-basis taxpayer. The taxpayer can defer the tax by refusing to accept payment. O D. Under the concept of constructive receipt, income is taxed when it is received by the taxpayer. The taxpayer can transfer the income to another person to avoid paying taxes.
Taxpayers report taxable rental income and all deductible rental expenses on schedule c (form 1040) profit or loss from business. True or False
Taxable income differs from financial accounting income in that It requires a change in the taxpayer's net worth It does not require a realization event It always requires the taxpayer to match income and expenses None of the above
a. Define the term constructive receipt. Explain its importance. b. Explain three restrictions on the concept of constructive receipt. a. Define the term constructive receipt. Explain its importance. O A. Under the concept of constructive receipt, income is taxed once earned but not received by the cash-basis taxpayer. The taxpayer cannot defer the tax by refusing to accept payment. B. Under the concept of constructive receipt, income is taxed when it becomes available to the taxpayer. The taxpayer cannot defer the tax by refusing to accept payment. O C. Under the concept of constructive receipt, income is taxed once earned and received by the cash-basis taxpayer. The taxpayer can defer the tax by refusing to accept payment. O D. Under the concept of constructive receipt, income is taxed when it is received by the taxpayer. The taxpayer can transfer the income to another person to avoid paying taxes. b. Explain three restrictions on the concept of constructive receipt. Income is not…

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