ndicate whether the following items are "Included in" or "Excluded from" gross income. a. During the year, that the taxpayer purchased stock as an investment which doubled in value. b. Amount an off-duty motorcycle police officer received for escorting a funeral procession. c. While his mother was in the hospital, the taxpayer sold some of her jewelry at a gain to help pay for the hospital bills. d. Child support payments received. e. A damage deposit the taxpayer recovered when he vacated the apartment he had rented. f. Interest received by the taxpayer on an investment in general purpose bonds issued by IBM. g. Amounts received by the taxpayer, a baseball "Hall of Famer," for autographing sports equipment (e.g., balls and gloves). h. Tips received by a bartender from patrons. (Taxpayer is paid a regular salary by the cocktail lounge that employs him.) i. Taxpayer sells his Super Bowl tickets for three times what he paid for them. j. Taxpayer receives a new BMW from his grandmother when he passes the CPA exam.

Answers

Answer 1
Answer:

Answer:

Gross income refers to the income of an individual before taxes or any other deductions. It includes all type of income from all sources.

The list is as follows:

a. Excluded from

b. Included in

c. Included in

d. Excluded from

e. Excluded from

f. Included in

g. Included in

h. Included in

i. Included in

j. Excluded from


Related Questions

The Work-in-Process inventory account of a manufacturing firm shows a balance of $4,090 at the end of an accounting period. The job cost sheets of two uncompleted jobs show charges of $570 and $370 for materials, and charges of $600 and $800 for direct labor. From this information, it appears that the company is using a predetermined overhead rate, as a percentage of direct labor costs, of: Multiple Choice 43%.
Question 2 Pluto has $100 to spend and his preferences are represented by the quasi-linear utility function U (2,m) = 10x-1/2x^2+m where x is the amount of pizza he eats and m is the amount of money he spends on other stuff. (a) What is Pluto's demand curve for pizza? (b) How much consumer surplus does Pluto get when the price of pizza is $5? Illustrate the calculation of consumer surplus with a diagram. (b) What is Pluto's utility if the price of pizza is $5? (c) Suppose that Pluto is uanble to purchase pizza. What is his utility? What is the gain in utility when he has the opportunity to buy pizza at a price of $5?
Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $120,000 or $300,000 with equal probabilities of 0.5. The alternative risk-free investment in T-bills pays 5% per year. Required:a. If you require a risk premium of 8%, how much will you be willing to pay for the portfolio?b. Suppose the portfolio can be purchased for the amount you found in (a). What will the expected rate of return on the portfolio be? c. Now suppose you require a risk premium of 15%. What is the price you will be willing to pay now? d. Comparing your answers to (a) and (c), what do you conclude about the relationship between the required risk premium on a portfolio and the price at which the portfolio will sell?
The boom in online, mobile, and social media has created a new set of social and ethical issues for companies. Their greatest concern involves ________. Group of answer choices failure to provide value-priced products for online customers protecting the privacy of knowing and unknowing customers providing too many alternative products online which confuses customers rarely following the marketing orientation when devising promotional offers online failing to reach their target customers through online marketing
Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 64,000 to 104,000 units is given below: Required: 1. Complete the schedule of the company’s total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 94,000 units during the year at a selling price of $7.99 per unit. Prepare a contribution format income statement for the year.

The Bureau of Labor Statistics announced that in January 2013, of all adult Americans, 143,322,000 were employed, 12,332,000 were unemployed, and 89,008,000 were not in the labor force. Use this information to calculate: a. the adult population b. the labor force c. the labor-force participation rate d. the unemployment rate

Answers

Answer:

a. 244,662,000

b. 155,654,000

c. 63.62%

d. 7.92%

Explanation:

a. the adult population

Adult population = Number of employed + Number of unemployed + Number of people not included in labor force

= 143,322,000 + 12,332,000 + 89,008,000

= 244,662,000

b. the labor force

Labor force = Number of employed + Number of unemployed

= 143,322,000 + 12,332,000

= 155,654,000

c. the labor-force participation rate

Labor-force participation rate = Labor force ÷ Adult population × 100

= 155,654,000 ÷ 244,662,000 × 100

= 63.62%

d. the unemployment rate

Unemployment rate = Number of unemployed ÷ Labor force × 100

= 12,332,000 ÷ 155,654,000 × 100

= 7.92%

The Bureau of Labour Statistics announced is:

  • A. The adult population is 244,662,000
  • B. the labour force is155,654,000
  • C. the labor-force participation rate is 63.62%
  • D. the unemployment rate is 7.92%

A. The adult population = Employed + Unemployed + Not in the labour force

The adult population = 143,322,000 + 12,332,000 + 89,008,000

The adult population = 244,662,000

B. The labour force = Employed + Unemployed

The labour force = 143,322,000 + 12,332,000

The labour force = 155,654,000

C. The labor-force participation rate = (Labour force / Adult population) × 100

The labor-force participation rate = 155,654,000 ÷ 244,662,000 × 100

The labor-force participation rate = 63.62%

D. The unemployment rate = Number of unemployed ÷ Labour force × 100

The unemployment rate = 12,332,000 ÷ 155,654,000 × 100

The unemployment rate = 7.92%

Therefore, a. 244,662,000, b. 155,654,000, c. 63.62%, d. 7.92%

Learn more about on unemployment rate, here:

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Activities of a central motor pool that provides and services vehicles for the use of municipal employees on official business should be accounted for in a. General Fund. b. Enterprise Fund. c. Internal Service Fund. d. Special Revenue Fund.

Answers

Answer:

c. Internal Service Fund

Explanation:

Internal Service Fund -

It refers to the sum of amount required to track the motion of any goods and services from one department to another , is referred to as internal service fund .

The amount spend on the internal service fund is used to determine the complete cost of providing the services and goods .

For example , maintenance is an example of the internal service fund .

Hence , from the given information of the question ,

The correct answer is c. Internal Service Fund .

New Business is just being formed by 10 investors, each of whom will own 10% of the business. The firm is expected to earn $1,000,000 before taxes each year. The corporate tax rate is 34% and the personal tax rate for the firm's investors is 35%. The firm does not need to retain any earnings, so all of its after-tax income will be paid out as dividends to its investors. The investors will have to pay personal taxes on whatever they receive. How much additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation? Group of answer choices $26,078 $20,332 $22,763 $19,006 $22,100

Answers

The additional spendable income will each investor have if the business is organized as a partnership rather than as a corporation is $22,100.

  • The calculation is as follows:

Income if formed as corporation in hands of each shareholder should be

= 1,000,000 ×  10% ×  ( 1- .34 ) × (1- .35)

= 100,000 × .66 × .65

= $42,900

Now  

Income will be taxable in hands of partner = 1,000,000 ×10% ×(1-.35)

= 100,000 ×.65

= 65000

Now  

Additional income should be

= $65,000 - $42,900

= $22,100

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Answer:

$22,100

Explanation:

Calculation for the additional spendable income

First step is to find the Corporation Spendable income amount

Corporate taxes$340,000

($1,000,000*34%)

Income after corporate tax $660,000

($1,000,000-$340,000)

Tax on dividends $231,000

($660,000*35%)

Spendable income $429,000

($660,000-$231,000)

Second step is to find the Partnership Spendable income amount

Taxes paid by business $0

Income received by investors $1,000,000

Taxes paid by partners as personal income $350,000

($1,000,000*35%)

Spendable income $650,000

($1,000,000-$350,000)

Last step is to find the Difference between Corporation Spendable income amount and the Partnership Spendable income amount

Using this formula

Difference in Spendable income=Corporation Spendable income amount - Partnership Spendable income amount

Let plug in the formula

Difference in Spendable income=$429,000-$650,000

Difference in Spendable income=$221,000

Which means that the amount of $221,000 is the

Total gain amount from being a partnership.

Hence, the Individual investor gain will be calculated as $221,000*10%

Individual investor gain=$22,100

Therefore the amount of spendable income that each investor will have if the business is organized as a partnership rather than as a corporation will be $22,100

What kind of display is located near the cash registers to encourage impulse
buying?

Answers

To encourage impulse purchases, inexpensive items such as snacks and lighters are placed near the cash registers.

What is the cash register?

A cash register is also known as a machine-controlled money handling system. It is a mechanical device used at a point of sale to register and calculate transactions.

It is typically attached to a storage space and applied to store cash and other valuables. In order to encourage impulse purchases, inexpensive items such as snacks and lighters are strategically placed near cash registers.

Learn more about the cash register, refer to:

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Answer:

cheap things like snacks and lighters

Explanation:

Consider the market for hamburgers in an economy where the market equilibrium is characterized by a quantity of hamburgers of 50 million and a price of $5.00 per hamburger. Suppose that currently 50 million hamburgers are being produced and sold at a price of $5.00. This outcome in the market for hamburgers is economically _________ because: a. The opportunity cost of producing the last hamburger equals the marginal benefit of consumption.
b. Some hamburgers that are valued more highly by consumers than their opportunity cost of production are not being produced and sold
c. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers.
Which of the following must be true for a market to be able to achieve an efficient outcome?
a. The market price is determined solely by the forces of supply of and demand for a good.
b. Firms can freely enter or exit the market without any barriers.
c. Private property rights are well-defined and enforced.

Answers

Answer:

a. The opportunity cost of producing the last hamburger equals the marginal benefit of consumption.

2. a. The market price is determined solely by the forces of supply of and demand for a good.

Explanation:

1. Since all the hamburgers are sold at an equilibrium price of $5 and all the hamburgers are sold, that is clear reflection that the opportunity cost that is the benefit foregone in order to produce the last hamburger = the maximum price that the consumer can pay for buying the additional hamburger, that is marginal benefit.

In that case the producer shall always produce the additional hamburger.

Accordingly the outcome in market is  economically efficient.

2. When the price is determined by the forces of supply and demand, that is at a point where the intersection of supply and demand forces takes place, it is the most efficient outcome, as at that price maximum consumers are ready to buy, and also maximum supplies are ready to be done, both are satisfied at their levels.

On May 1, 2017, Crane Company purchased the copyright to Blue Spruce Corp. for $112800. It is estimated that the copyright will have a useful life of 4 years. The amount of amortization expense recognized for the year 2017 would be:_______. a) $28200 b) $15040 c) $18800. d) $14100.

Answers

Answer:

$18,800

Explanation:

The amortization expense can be calculated by dividing the cost of copyright to purchase by the estimated useful life and then multiplied by the number of months covered until May 1, 2017.

Amortization expense =  Cost to purchase  / Estimated useful life) x 8/12 Amortization expense = ($112,800 / 4 years) * 8/12

Amortization expense = $18,800

As the copyright is purchased on may 1 it will cover 8 months till 31 december 2017

Other Questions
Evergreen Company sells lawn and garden products to wholesalers. The company’s fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred:Feb. 28 Sold merchandise to Lennox, Inc., for $10,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note.Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $7,200, and accepted a noninterest-bearing note for which $8,000 payment is due on March 31, 2022.Apr. 3 Sold merchandise to Carr Co. for $7,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $3,200. Evergreen reduced the customer’s receivable balance by $5,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $50,000 to a factor without recourse. The factor charged Evergreen a 1% finance charge on the receivables transferred. The sale criteria are met.June 30 Discounted the Lennox, Inc., note at the bank. The bank’s discount rate is 12%. The note was discounted without recourse.Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank.Required:1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold.2. Prepare any necessary adjusting entries at December 31, 2021. Adjusting entries are only recorded at year-end.3. Prepare a schedule showing the effect of the journal entries on 2021 income before taxes