The Sage Company has the opportunity to purchase a building located next to its office. Sage would usethe building as a day care center for the children of its employees and an exercise facility for theemployees. Occasionally, portions of the building could be used for employees' family events such asreunions, birthday parties, and anniversaries.The company would like to know if the planned uses of the building would fit into a beneficially taxedemployee compensation plan. Complete the statement below regarding this potential employee fringebenefit.The planned use of the facility would result inincome for the employees becausechild day care services and exercise facilities provided to the employees are specificallyfrom employees' gross income.includedexcluded The Sage Company has the opportunity to purchase a building located next to its office. Sage would usethe building as a day care center for the children of its employees and an exercise facility for theemployees. Occasionally, portions of the building could be used for employees' family events such asreunions, birthday parties, and anniversaries.The company would like to know if the planned uses of the building would fit into a beneficially taxedemployee compensation plan. Complete the statement below regarding this potential employee fringebenefit.The planned use of the facility would result inincome for the employees becausechild day care services and exercise facilities prees are specificallyInontaxablefrom employees' gross itaxable

Taxes are the amount of dues or liabilities that are to be paid by the individual to the government…

Answered: The Sage Company has the opportunity to…

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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Which of the following is not true of passive activities? Material participation and active participation mean the same thing. Material participation includes working more than 500 hours during the year in the activity. A real estate professional must spend more than 750 hours during the year in real estate activities. The $25,000 rental real estate exception may be limited by the taxpayer's adjusted gross income.
A local citizen gives the City of Salem a painting by Picasso to display in city hall. Under what condition will the city not report this painting as a capital asset on its government-wide financial statements? If it does report the painting as a capital asset, must the city report depreciation?
Sharp Accounting rents a floor in an office building. Their insurance advisor has suggested that they consider coverage under the Legal Liability Coverage Form. The Legal Liability Coverage Form Provides a lower premium rate than direct property insurance on the covered real property. Contains a coinsurance condition that applies to property in Sharp's custody. Contains a deductible that applies to damage caused by Sharp. Provides coverage for property of others in Sharp's custody regardless of fault.
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Question 53 of 75. Which of the following statements defines active participation by a taxpayer in a rental real estate activity? They are involved in the activity's operations on a regular, continuous, and substantial basis. They make management decisions like approving new tenants, deciding on rental terms, and approving expenditures. They participate in the activity for at least 100 hours. They spend more than half the time in all trades or businesses and more than 750 hours in real estate activities during the year.
The board of directors of Orange Corporation, a calendar year taxpayer, is holding its year-end meeting on December 28, 2022. One topic on the board’s agenda is the approval of a $25,000 gift to a qualified charitable organization. Orange has a $20,000 charitable contribution carryover to 2022 from a prior year. Identify the tax issues the board should consider regarding the proposed contribution.
1. Bonnie receives salary income of $32,000, unemployment compensation of $4,400, and interest income of $1,200 and a gift of $7,000 in cash from her aunt. How much gross income does Bonnie have?In your response, please make sure to take all of the facts above into consideration. You can refer back to the text, lecture videos, and the IRS website. Please make sure to support whatever conclusion you decide to present.2. This next question will be more opinion-based. The United States operates utilizes a progressive tax system. What exactly does this mean? Do you believe it is the best system for the United States or this is there a better answer (one additional choice could be a flat tax for example)? Please try to explain your thoughts as thoroughly as possible.Your initial post will be due Wednesday February 3, 2021 with follow up posts to at least two classmates due Sunday February 31, 2021
The Town of Elizabeth operates the old train station as an enterprise fund. The train station is on the national register of historic buildings. Since the town has held the building for such a long time, the Central Station Fund has no long-term debt. The only capital assets recorded by the Central Station Fund are machinery and equipment. Businesses rent space in the building and the town provides all services related to the operation and maintenance of the building. Following is information related to the fund’s 2011 operating activities. 1. Rental income of $95,300 was accrued. Subsequently, cash in the amount of $90,010 was received on accounts. 2. Cash expenses for the period included: administrative services, $20,205; maintenance and repairs, $72,922; supplies and materials, $7,089; and utilities, $28,124. 3. The Central Station Fund received a $60,000 transfer of funds from the General Fund. 4. Adjustments were made for depreciation ($3,519) and for uncollectible accounts…
The City of Ronchester has a defined benefit pension plan for its firefighters. How is the amount of pension expense determined that should be recognized in the current year?
Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by the County, at the time of the lawsuit the attorneys believed that the County was likely to lose and the estimated amount of the ultimate judgment would be $100,000. This year, the case was finally settled with a judgment against the County of $150,000, which was paid. Assuming that the County maintains its books and records in a manner to facilitate the preparation of its government-wide financial statements, the entry in the current year should be a. Debit Expenditures $150,000; Credit Cash $150,000. b. Debit Expenses $150,000; Credit Cash $150,000. c. Debit Expenditures $50,000 and Claims Payable $100,000; Credit Cash $150,000. d. Debit Expenses $50,000 and Claims Payable $100,000; Credit Cash $150,000.
On January 1, 2020, a rich citizen of the Town of Ristoni donates a painting valued at $300,000 to be displayed to the public in a government building. Although this painting meets the three criteria to qualify as an artwork, town officials choose to record it as an asset. The gift has no eligibility requirements. These officials judge the painting to be inexhaustible so that depreciation will not be reported. For the year ended December 31, 2020, what does the town report on its government-wide financial statements in connection with this gift? How does the answer to (a) change if the government decides to depreciate this asset over a 10-year period using straight-line depreciation? How does the answer to (a) change if the government decides not to capitalize the asset?
A local museum has its historical collections on display for the museum visitors. The majority of these items were donated and were worth several million dollars when they were donated. After visiting the museum you decide to look at the Statement of Financial Position to see the amount that has been recognized for these collections. The amount listed in the Statement of Financial Position is $1. How/why would the not for profit only show this amount for these collections?

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