**Text Transcription:** 24. Which of the following, if any, *correctly* describes the earned income credit? a. Would be available regardless of the amount of the taxpayer's adjusted gross income. b. Is not available to a surviving spouse. c. Requires a taxpayer to have a qualifying child to take advantage of the credit. d. Is a refundable credit. 25. X, is an accrual method, calendar year, taxpayer in the business of sponsoring classical music concerts. X sponsored a concert performed on December 23, 2003. X generated $120,000 of revenue from this concert. In connection with this concert, X had the following expenses: (i) X rented a concert venue for one night (the night of the 23rd) at Lincoln Center for $30,000, which X paid on December 21, 2023, (ii) X hired performers (for the one night performance on Dec. 23) whom X paid $25,000 on January 4, 2024, and (iii) X hired a clean-up agency to restore the concert hall to its original condition. X hired and paid the clean-up agency $17,000 on December 29, 2023, and the agency actually cleaned up the concert hall on January 5, 2024. What is X's net income from THIS concert for 2023? a. $90,000 b. $73,000 c. $65,000 d. $48,000 e. None of a-d is correct **Objective Short Answer** (Note: There are no graphs or diagrams in the text.)
**Text Transcription:** 24. Which of the following, if any, *correctly* describes the earned income credit? a. Would be available regardless of the amount of the taxpayer's adjusted gross income. b. Is not available to a surviving spouse. c. Requires a taxpayer to have a qualifying child to take advantage of the credit. d. Is a refundable credit. 25. X, is an accrual method, calendar year, taxpayer in the business of sponsoring classical music concerts. X sponsored a concert performed on December 23, 2003. X generated $120,000 of revenue from this concert. In connection with this concert, X had the following expenses: (i) X rented a concert venue for one night (the night of the 23rd) at Lincoln Center for $30,000, which X paid on December 21, 2023, (ii) X hired performers (for the one night performance on Dec. 23) whom X paid $25,000 on January 4, 2024, and (iii) X hired a clean-up agency to restore the concert hall to its original condition. X hired and paid the clean-up agency $17,000 on December 29, 2023, and the agency actually cleaned up the concert hall on January 5, 2024. What is X's net income from THIS concert for 2023? a. $90,000 b. $73,000 c. $65,000 d. $48,000 e. None of a-d is correct **Objective Short Answer** (Note: There are no graphs or diagrams in the text.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:**Text Transcription:**
24. Which of the following, if any, *correctly* describes the earned income credit?
a. Would be available regardless of the amount of the taxpayer's adjusted gross income.
b. Is not available to a surviving spouse.
c. Requires a taxpayer to have a qualifying child to take advantage of the credit.
d. Is a refundable credit.
25. X, is an accrual method, calendar year, taxpayer in the business of sponsoring classical music concerts. X sponsored a concert performed on December 23, 2003. X generated $120,000 of revenue from this concert. In connection with this concert, X had the following expenses: (i) X rented a concert venue for one night (the night of the 23rd) at Lincoln Center for $30,000, which X paid on December 21, 2023, (ii) X hired performers (for the one night performance on Dec. 23) whom X paid $25,000 on January 4, 2024, and (iii) X hired a clean-up agency to restore the concert hall to its original condition. X hired and paid the clean-up agency $17,000 on December 29, 2023, and the agency actually cleaned up the concert hall on January 5, 2024. What is X's net income from THIS concert for 2023?
a. $90,000
b. $73,000
c. $65,000
d. $48,000
e. None of a-d is correct
**Objective Short Answer**
(Note: There are no graphs or diagrams in the text.)
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