1-7 Please identify each type of business 1) Jean Johnson's home health care business does not have liability spearate from herself. 2) Michael Johnson and Joaquin Nunez each invested $10,000 in their computer consulting business and received shares of the company in stocks in exchnage for their investments 3) Tamara Bryant's venterinary clinic has seperate liability. She is the only owner. 4) Alan and David Washington own an automobile repair garage. Adam's capital balance is $8,000 and David's is $7,000 5) Crown Candy Company presents a statement of owner's capital in its annual financial statements

1-7 Please identify each type of business 1) Jean Johnson's home health care business does not have liability spearate from herself. 2) Michael Johnson and Joaquin Nunez each invested $10,000 in their computer consulting business and received shares of the company in stocks in exchnage for their investments 3) Tamara Bryant's venterinary clinic has seperate liability. She is the only owner. 4) Alan and David Washington own an automobile repair garage. Adam's capital balance is $8,000 and David's is $7,000 5) Crown Candy Company presents a statement of owner's capital in its annual financial statements

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 26MCQ

See similar textbooks

Similar questions

I am going to name a couple of statements and terms. I need to know if they are Proprietorship, Partnership, or Corporation.1) Bronson Company presents a statement of retained earnings in its financial statements at year end2)Jean Johnson's home health care business doesn't have liability separate from herself3)Grand Canyon Company's Retained Earnings balance is 5 million4)Michael Johnson and Joaquin Nunoz each invested $10,000 in their computer consulting business, and received shares of the company's stock in exchange for their investments5)Crown Candy Company presents statement of owner's capital in its annual financial statement.6)Johnson, Capital7) Common Stock8) Statement of capital containing two capital accounts9) Par Value10) Stockholder's Equity11) Partners' Capital, December 3112) Statement of capital containing one capital account13) Retained Earnings14) Jones, Drawings15) Additional Paid-in-Capital
Fae and Carley had a tech business. After two unprofitable years, the business closed. At that point, the liabilities of the business were $100,000 larger than its assets. Under each separate situation, how much money (if any) can creditors take from Carley’s personal assets to pay the unpaid business debts? a. The business is set up as a limited liability company (LLC). b. The business is set up as an S corporation.
Listed below are several statements that relate to financial accounting and reporting. Identify the accounting concept that applies to each statement. 1. Jenna Asare is the sole owner of Asare Appliances. Jenna borrowed $100,000 to buy a new home to be used as their personal residence. This liability was not recorded in the records of Asare Appliances. 2. Apple Inc. distributes an annual report to its shareholders. 3. Hewlett-Packard Corporation depreciates machinery and equipment over their useful lives. 4. Crosby Company lists land on its balance sheet at $120,000, its original purchase price, even though the land has a current fair value of $200,000. 5. Honeywell International Inc. records revenue when products are delivered to customers, even though the cash has not yet been received. 6. Liquidation values are not normally reported in financial statements even though many companies do go out of business. 7. IBM Corporation, a multibillion-dollar company, purchased some small tools…
Ronald runs his own public relations business. During the year he incurred the following expenses: (a) salary costs of $350,000; (b) travel expenses of $7,000 for travel between home and work; (c) travel expenses of $3,000 for travel from a client's premises to his home; (d) $1,500 on a new suit to impress his clients; (e) $700 on membership of the local sports club where he entertains clients; (f) $8,000 in meal expenses on entertaining clients. Required: State whether the above would be allowed as allowable deduction against assessable income. Provide a justification for your argument based on statute and case law
Charlotte Braun is a realtor. She buys and sells properties on her own and she also earns commission as a real estate agent for buyers and sellers. She organized her business as a proprietorship on November 24, 19X4. Consider the following facts as November 30, 19x4. a Braun owed 85,000 on a note payable for some underdeveloped land that had been acquired by her business for a total price of 140,000 b. Braun’s business had spend 20,000 for a century 21 real estate franchise which entitled her to represent herself as a century 21 agent. Century 21 is a national affiliation of independent real estate agents. This franchise is a business asset c. Braun owed 120,000 on personal mortgage on her personal residence which she acquired in 19X1 for a total price of 170,000 d. Braun had 10,000 in her personal bank account and 12,000 in her business bank account e. Braun owed 1,800 on a personal charge account with Neiman-Marcus Department Store f. Braun acquired business for 17,000 on November…
Emily owns three businesses: a dry cleaner, a market, and a candy store. The dry cleaner has revenue of $5,200; the market has revenue of $12,000; and the candy store has revenue of $7,400. Under the business entity concept, Emily should record O a. $24,600 of revenue in the records of the dry cleaner. O b. $24,600 of revenue in her personal records. O c. $24,600 of revenue in the records of the market. © d. None of these choices are correct.
Description Business Organization a. Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business. Partnership b. Lannister owns Wealth Management. The business is a separate legal entity and pays an additional business income tax. c. Raymond and Amy own Security Services. The business is not a separate legal entity. d. Ownership of Zander Company is divided into 1,000 shares of stock. The company pays a business income tax. Corporation e. Russell is the sole owner of Wilson Sports. The business is not a separate legal entity from Russell and the business ends with his death. f. Trent Company is owned by Trent Malone, who is personally liable for the company's debts. Sole proprietorship g. Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services. Corporation h. Vera is the sole owner of Tech…
How do I get the numbers for the answer i know that for example katies entry is 4500 but I dont know the fomula to get that answer from her 90000 total credit balance???!!! Cummings and Stickel Construction Company, a partnership, is operating a general contracting business. Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Hewson, and Patricia Weber. Profits and losses are shared equally. The books are kept on the calendar-year basis. On August 10, after the business had been in operation for several years, Patricia Weber passed away. Mr. Weber wished to sell his wife’s interest for $30,000. After the books were closed, the partners’ capital accounts had credit balances as follows: Katie Cummings $90,000 Julie Stickel 60,000 Roy Hewson 50,000 Patricia Weber 40,000 Required: 1. Prepare the general journal entry required to enter the check issued to Mr. Weber in payment of his deceased wife’s interest in the…
2. Mary owns and operates a fabric shop. Mary needs to borrow money to expand; therefore, she prepared financial statements to present to her banker. Mary recorded the assets of her store at the cost she paid for them 2 years ago rather than when she transferred them to her business this year. Mary has violated which ofthe following principles or concepts? A. Reliability principle B. Separate Entity Assumption C. Going-concern principle D. Stable-monetary-unit concept I'm very confused with the answer to this question, please also explain why the other options are wrong.
Black operates a business. Black is single. The following information is available concerning his business related expenses during 2021: 1. A customer who owed $6,200 on open account filed for bankruptcy during 2021. It was estimated during 2021 that only $1,700 would eventually be collected from the customer during 2022. The account receivable had a basis of $6,200. 2. He incurred costs of $2,500 to appear before the city council to lobby for proposed legislation that had a direct effect upon his business. 3. He paid political contributions of $250 to a candidate for the city council. 4. He traveled to Paris on business for 6 days. The cost of airfare was $1,500. The cost of a hotel room was $250 per day. The cost of meals was $60 per day. Business was conducted on 5 days. He stayed the extra 1 day for a vacation. 5. He incurred entertainment expenses qualified business meals in the amount of $4,500 and entertainment expenses for attending the theater in the amount of $3,500. 6. He…
Please help me with the following problem. Thank you in advance. Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business has gross business income of $421,000 and business expenses of $267,000, including wages paid of $58,000. The business sold some land that had been held for investment generating a long-term capital gain of $15,000. The business has $300,000 of qualified business property in 2018. Rob's wife, Marie, has wage income of $250,000. They jointly sold stocks in 2018 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2018, they take the standard deduction of $24,000. The income threshold for QBI limitations starts at $315,000 for married filing jointly taxpayers. a. What is Rob and Marie's taxable income before the QBI deduction?$ b. What is Rob and Marie's QBI?$ c. What is Rob and Marie's QBI deduction?$
during 2017, Regina, a sole proprietor, had the following income and expenses from herhome jewelry business. Regina is also employed as an office assistant at a local business. W-2 wages from employer$28,000 Proceeds from jewelry sales15,000 Supplies for jewelry5,000 Travel for jewelry1,400 Charitable contributions to church3,000 a.What income or loss should be reported on Schedule C? b.What is Regina's AGI?