Gd inc is an accrual basis taxpayer in 2011 an employee

Assignment Help Accounting Basics

Reference no: EM13598312

Gold, Inc., is an accrual basis taxpayer. In 2011, an employee accidentally spilled hazardous chemicals on leased property. The chemicals destroyed trees on neighboring property, resulting in $30,000 of damages. In 2011, the owner of the property sued Gold, Inc., for the $30,000. Gold's attorney feels that it is liable and the only issue is whether the neighbor will also seek punitive damages that could be as much as three times the actual damages. In addition, as a result of the spill, Gold was in violation of its lease and was therefore required to pay the landlord $15,000. However, the amount due for the lease violation is not payable until the termination of the lease in 2014. None of these costs were covered by insurance. Jeff Stuart, the president of Gold, Inc., is generally familiar with the accrual basis tax accounting rules and is concerned about when the company will be allowed to deduct the amounts the company is required to pay as a result of this environmental disaster. Write Mr. Stuart a letter explaining these issues. Gold's address is 200 Elm Avenue, San Jose, CA 95192.

Reference no: EM13598312

Questions Cloud

Debra works on the assembly line of a manufacturing company : debra works on the assembly line of a manufacturing company where she installs a component part for one of the companys

How much gain or income will ben recognize on his : beth and ben are equal partners in the bb partnership formed on june 1 of the current year ben contributed land that he

From the e-activity evaluate the synergies gained for the : use the internet to a recent business combination that occurred. be prepared to discuss. from the e-activity evaluate

You are considering a new project the project has : you are considering a new project. the project has projected depreciation of 720 fixed costs of 6000 and total sales of

Gd inc is an accrual basis taxpayer in 2011 an employee : gold inc. is an accrual basis taxpayer. in 2011 an employee accidentally spilled hazardous chemicals on leased

The treasury department issues two types of regulations : the treasury department issues two types of regulations interpretative and legislative. compare and contrast

Mateo corporation is considering purchasing a new delivery : mateo corporation is considering purchasing a new delivery truck. the truck has many advantages over the companys

Expansionary or contractionary if the fed wants to keep : if the fed wants to keep real gdp at its potential level in 2015 should it use expansionary policy or contractionary

Human performance technology discussion questions 1 on an : 1. on an airplane you find yourself sitting next to an executive whose goodwill is important to you either as a client

User Account

All Pages