How much income would be included on his final income tax

Assignment Help Accounting Basics
Reference no: EM133175991

Question - Patrick King dies on January 15, 2021. On the date of his death, Patrick had a bank account which pays interest on a quarterly basis. On March 31, 2021, $12,000 of interest income is credited to Patrick's bank account.

Required -

(a) If Patrick was on the cash basis of accounting at the date of his death, how much income would be included on his final income tax return?

(b) Would your answer to (a) change if Patrick was on the accrual basis of accounting at the date of his death?

(c) If Patrick does not recognize all of the interest income on his final income tax return in part (a) or (b), who would recognize the income?

Reference no: EM133175991

Questions Cloud

Comparing operating characteristics across industries : Following are selected income statement and balance sheet data for companies in different industries.
Explaining the concept and design of better working lives : Explaining the concept and design of better working lives in order that REBU to promote good physical and mental health work practices
What are the necessary journal entries : On December 31, 2018, entity reissued all 10,000 shares for P190,000. On the transactions provided from 2017 to 2018, what are the necessary journal entries
Prepare the necessary entries for the revaluation of assets : The receivable balance will be decreased to P40,000. Prepare the necessary entries for revaluation of assets and liabilities in quasi-reorganization activity
How much income would be included on his final income tax : If Patrick was on the cash basis of accounting at the date of his death, how much income would be included on his final income tax return
Recommend a new travel agency : You have been asked to personally recommend a new travel agency to handle all airfare, accommodation, and related travel needs for your organization of 500 staf
What is the p-e ratio : The market capitalization rate corresponding to WMT stock is 7%. The expected ROE is 4% and the expected EPS is $2. What is the P-E ratio
Business strategy in achieving business success : What is the role of business strategy in achieving business success? gives recent examples on how organisation change thier business strategy to sustain
What is the current value of the stock : Amazing Corp. has just now paid a dividend of $3 per share (Do); What is the current value of the stock, after paying the dividend

Reviews

Write a Review

Accounting Basics Questions & Answers

  What factors would you consider in making the decision

From the case in the chapter of Greenfield's Landscaping: What factors would you consider in making this decision? Using only the principle of utility.

  Prepare journal entry to record the sale of the building

The building had originally cost the company $21,600,000 and had accumulated depreciation to date of $20,790,000. Prepare journal entry to record the sale

  Calculate the change that occurred in cash during the month

Calculate the change that occurred in cash during the month. You may assume that the change in each balance sheet amount is due to a single event

  Shares and other operating improvements

Frantic Fast food had earnings after taxes of $390,000 in the year 2009 with 300,000 shares outstanding. On January 1, 2010, the firm issued 25,000 new shares. Because of the proceeds from these new shares and other operating improvements, earning..

  Agreement for sharing profits and losses

Determine how the $ 110,000 net income would be divided under each of the following three independent assumptions as to the agreement for sharing profits and losses. Use schedules of the type illustrated in this chapter to show all steps in the di..

  Why was the concept of prudence introduce in the first place

Why was the concept of prudence introduce in the first place? Why would an executive director of audit be against the concept of prudence?

  What is the rate of return of this investment

An investment requires $16,000 today, and produces the first cash flow of $800 in - What is the rate of return of this investment

  What amount can the taxpayer deduct on tax return

The taxpayer has no other capital asset transactions during the year. What amount, if any, can the taxpayer deduct on her tax return for the loss sustained?

  Find how much is the revaluation surplus on december

On December 31, 20x3, Entity A revalues the equipment at a fair value of ?820,000. How much is the revaluation surplus on December 31, 20x3?

  Determine operating cash flows where is gain from selling

When using the indirect method to determine operating cash flows, where is the gain from selling a long-term investment recognized?

  What amount shall be reported as sales

What amount shall be reported as (1) sales and (2) cost of goods sold in 2018 assuming the residual value is guaranteed

  Explains the required reporting for defined contribution

Write a 700- to 1,050-word executive memo that explains the required reporting for defined contribution, and defined benefit

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd