Req A to D Complete the question by entering your answers in the tabs below. a. A taxpayer completes $700 of accounting services in December 2022 for a client who pays for the accounting work in January 2023. b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2022, she rents a computer for a $260 rental fee and receives a $650 deposit. The customer returns the computer and is refunded the deposit on December 20, 2022. a. b. c. Same facts as (b) except that the computer is returned on January 5, 2023. d. On December 18, 2022, a landlord rents an apartment for $625 per month and collects the first and last months' rent up front. It is customary that tenants apply the security deposit to their last month's rent upon moving out. C. d. Taxable income Req E S $ 0✔ 260✔ 650 x $ $ 1,250 Show less A
Req A to D Complete the question by entering your answers in the tabs below. a. A taxpayer completes $700 of accounting services in December 2022 for a client who pays for the accounting work in January 2023. b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2022, she rents a computer for a $260 rental fee and receives a $650 deposit. The customer returns the computer and is refunded the deposit on December 20, 2022. a. b. c. Same facts as (b) except that the computer is returned on January 5, 2023. d. On December 18, 2022, a landlord rents an apartment for $625 per month and collects the first and last months' rent up front. It is customary that tenants apply the security deposit to their last month's rent upon moving out. C. d. Taxable income Req E S $ 0✔ 260✔ 650 x $ $ 1,250 Show less A
Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions
Section: Chapter Questions
Problem 30P
Related questions
Question
Transcribed Image Text:Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2022 in each of the following
independent cases:
Required:
a. A taxpayer completes $700 of accounting services in December 2022 for a client who pays for the accounting work in January
2023.
b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2022, she rents a computer for a $260
rental fee and receives a $650 deposit. The customer returns the computer and is refunded the deposit on December 20, 2022.
c. Same facts as (b) except that the computer is returned on January 5, 2023.
d. On December 18, 2022, a landlord rents an apartment for $625 per month and collects the first and last months' rent up front. It is
customary that tenants apply the security deposit to their last month's rent upon moving out.
e. An accountant agrees to perform $395 of tax services for an auto mechanic who has agreed to perform repairs on the car of the
accountant's wife. The mechanic repairs the car in December 2022 and the accountant starts and completes the tax work in March
2023.
Complete the question by entering your answers in the tabs below.
Req A to D
Year
An accountant agrees to perform $395 of tax services for an auto mechanic who has agreed to perform repairs on the car of
the accountant's wife. The mechanic repairs the car in December 2022 and the accountant starts and completes the tax work
in March 2023.
2022
2023
Req E
$
Accountant
$
Taxable income
X Answer is complete but not entirely correct.
Mechanic
0XS
395 $
395 x
0x
< Req A to D
Reg
Transcribed Image Text:Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2022 in each of the following
independent cases:
Required:
a. A taxpayer completes $700 of accounting services in December 2022 for a client who pays for the accounting work in January
2023.
b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2022, she rents a computer for a $260
rental fee and receives a $650 deposit. The customer returns the computer and is refunded the deposit on December 20, 2022.
c. Same facts as (b) except that the computer is returned on January 5, 2023.
d. On December 18, 2022, a landlord rents an apartment for $625 per month and collects the first and last months' rent up front. It is
customary that tenants apply the security deposit to their last month's rent upon moving out.
e. An accountant agrees to perform $395 of tax services for an auto mechanic who has agreed to perform repairs on the car of the
accountant's wife. The mechanic repairs the car in December 2022 and the accountant starts and completes the tax work in March
2023.
Req A to D
Complete the question by entering your answers in the tabs below.
a.
b.
a. A taxpayer completes $700 of accounting services in December 2022 for a client who pays for the accounting work in
January 2023.
b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2022, she rents a computer for a
$260 rental fee and receives a $650 deposit. The customer returns the computer and is refunded the deposit on December
20, 2022.
C.
d.
c. Same facts as (b) except that the computer is returned on January 5, 2023.
d. On December 18, 2022, a landlord rents an apartment for $625 per month and collects the first and last months' rent up
front. It is customary that tenants apply the security deposit to their last month's rent upon moving out.
Taxable
income
$
$
$
$ 1,250
X Answer is complete but not entirely correct.
Req E
0✓
260✔
650 X
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