Determining the report income

Assignment Help Accounting Basics

Reference no: EM13972668

Determine whether any income must be recognized in each of the following situations, as well as who must report income, how much that taxpayer should report, and when that taxpayer will report the income:

a. Patz Corporation owns a gourmet restaurant. The restaurant needs to remodel its kitchen but is short of cash. Dennis owns Tucky's Accessories, a restaurant supply store. The manager of Patz makes a deal with Dennis to have Tucky's do the kitchen remodeling, in exchange for which Patz will cater Tucky's company picnic. Tucky's does the remodeling and Patz caters the picnic. It costs Patz $800 to cater the picnic, a job for which it would have charged $1,500.

b. Geraldo is a sales manager who enjoys collecting antique guns. Geraldo attends various shows around the country at which collectors and dealers sell and trade guns. During the current year, Geraldo sells 3 guns for a total of $6,200 (the cost of the guns to Geraldo was $4,000) and purchases 2 guns at a total cost of $2,400. In addition, he exchanges a gun for which he had paid $700 for another gun worth $800.

Reference no: EM13972668

Questions Cloud

Contract in the year of death : Assume the same facts as in part b and that Annika dies on August 4, 2027. How does the executor of Annika's estate account for the contract in the year of her death?

Explain the effects of the disposal of an asset. : Problem E8-14: Recording the Disposal of an Asset at Three Different Sales Prices Marriott International is a worldwide operator and franchisor of hotels and related lodging facilities totaling over $1.4 billion in property and equipment.

Executor of minnie estate account : Assume that the accident does not occur until November 1, 2034. How does the executor of Minnie's estate account for the annuity on her 2034 return?

Does the direction of interest rates : Discuss the impact of the current level of interest rates on capital budgeting decisions namely Net Present Value. Consider the current bond yield curve. Does the direction of interest rates affect your prior assessment?

Determining the report income : Determine whether any income must be recognized in each of the following situations, as well as who must report income, how much that taxpayer should report, and when that taxpayer will report the income:

Enhancing the product portfolio of procter and gamble : This essay is based on enhancing the product portfolio of Procter and Gamble (P&G) with a consideration and review of Ansoff's matrix

Calculate the dividends, if any, declared during the year. : A firm's net income is $330,000 on sales of $31.5 million. Average assets for the period were $7 million. For the year, what was the firm's:margin,turnover,and ROI?

Personal checking account : On June 1, she forms the CAM Rental Corporation and transfers ownership of the rental properties to the corporation. The tenants continue to pay Camille the monthly rent, which she deposits in her personal checking account.

What is possible impact of not making the identified changes : What is the possible impact of not making the identified changes? What does this policy state needs to be done to support teachers and learners in the classroom?

User Account

All Pages