Yolanda is a cash basis taxpayer with the following transactions during the year: Cash received from sales of products $66,000 Cash paid for expenses (except rent and interest) 40,000 Rent prepaid on a leased building for 18 months 45,000 beginning December 1 Prepaid interest on a bank loan, paid on 5,000 December 31 for the next 3 months Calculate Yolanda’s income from her business for this calendar year. Sales income $_____________ Expenses: Other than rent and interest $______________ Rent $_____________________ Interest $__________________ Net income $_______________
Yolanda is a cash basis taxpayer with the following transactions during the year: Cash received from sales of products $66,000 Cash paid for expenses (except rent and interest) 40,000 Rent prepaid on a leased building for 18 months 45,000 beginning December 1 Prepaid interest on a bank loan, paid on 5,000 December 31 for the next 3 months Calculate Yolanda’s income from her business for this calendar year. Sales income $_____________ Expenses: Other than rent and interest $______________ Rent $_____________________ Interest $__________________ Net income $_______________
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 30P
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Question
Yolanda is a cash basis taxpayer with the following transactions during the year:
Cash received from sales of products $66,000
Cash paid for expenses (except rent and interest) 40,000
Rent prepaid on a leased building for 18 months 45,000 beginning December 1
Prepaid interest on a bank loan, paid on 5,000 December 31 for the next 3 months
Calculate Yolanda’s income from her business for this calendar year.
Sales income $_____________
Expenses:
Other than rent and interest $______________
Rent $_____________________
Interest $__________________
Net income $_______________
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT