Accounting

A partnership must generally use the same tax year of the partners who own the majority of ...

A partnership must generally use the same tax year of the partners who own the majority of ...

A partnership must generally use the same tax year of the partners who own the majority of partnership income and capital.

Sheena Maskell   70   2 Replies

Sheena Maskell

An improper election to use a fiscal year automatically places the taxpayer on the calendar year.

An improper election to use a fiscal year automatically places the taxpayer on the calendar year.

An improper election to use a fiscal year automatically places the taxpayer on the calendar year.

Sheena Maskell   84   2 Replies

Sheena Maskell

If Jett Corporation receives a charter in 2008 but does not begin operations and file its first tax ...

If Jett Corporation receives a charter in 2008 but does not begin operations and file its first tax ...

If Jett Corporation receives a charter in 2008 but does not begin operations and file its first tax return until 2010, Jett may elect a fiscal year on the 2010 return.

Sheena Maskell   56   2 Replies

Sheena Maskell

Partnerships, S corporations, and personal service corporations may elect a taxable year which ...

Partnerships, S corporations, and personal service corporations may elect a taxable year which ...

Partnerships, S corporations, and personal service corporations may elect a taxable year which results in a tax deferral of four months.

Sheena Maskell   84   2 Replies

Sheena Maskell

Except in a few specific circumstances, once adopted, an accounting period may be changed without ...

Except in a few specific circumstances, once adopted, an accounting period may be changed without ...

Except in a few specific circumstances, once adopted, an accounting period may be changed without IRS approval.

Sheena Maskell   177   2 Replies

Sheena Maskell

Generally, an income tax return covers an accounting period of 12 months.

Generally, an income tax return covers an accounting period of 12 months.

Generally, an income tax return covers an accounting period of 12 months.

Sheena Maskell   57   2 Replies

Sheena Maskell

The final tax return of Marjorie, a single taxpayer on the calendar basis, who died on July 15, ...

The final tax return of Marjorie, a single taxpayer on the calendar basis, who died on July 15, ...

The final tax return of Marjorie, a single taxpayer on the calendar basis, who died on July 15, 2009, is due on April 15, 2010 (ignoring extensions).

Sheena Maskell   82   2 Replies

Sheena Maskell

Alvin, a practicing attorney who also owns an office supplies store, may use the cash basis for his ...

Alvin, a practicing attorney who also owns an office supplies store, may use the cash basis for his ...

Alvin, a practicing attorney who also owns an office supplies store, may use the cash basis for his practice and the accrual basis for his office supplies store.

Sheena Maskell   132   2 Replies

Sheena Maskell

Under the cash method of accounting, payment by credit card entitles the taxpayer to deduct the ...

Under the cash method of accounting, payment by credit card entitles the taxpayer to deduct the ...

Under the cash method of accounting, payment by credit card entitles the taxpayer to deduct the expenditure at the time the charge is made.

Sheena Maskell   74   2 Replies

Sheena Maskell

If a cash basis taxpayer gives a note in payment of an expense, the deduction may not be taken until ...

If a cash basis taxpayer gives a note in payment of an expense, the deduction may not be taken until ...

If a cash basis taxpayer gives a note in payment of an expense, the deduction may not be taken until the note is paid.

Sheena Maskell   75   2 Replies

Sheena Maskell

Under the accrual method of accounting, the two tests to determine when income must be reported and ...

Under the accrual method of accounting, the two tests to determine when income must be reported and ...

Under the accrual method of accounting, the two tests to determine when income must be reported and expenses deducted are the all-events test and the economic performance test.

Sheena Maskell   66   2 Replies

Sheena Maskell

A taxpayer who uses the cash method in computing gross income from his or her business must use the ...

A taxpayer who uses the cash method in computing gross income from his or her business must use the ...

A taxpayer who uses the cash method in computing gross income from his or her business must use the cash method in computing expenses of such business.

Sheena Maskell   59   2 Replies

Sheena Maskell

A taxpayer may use a combination of accounting methods as long as income is clearly reflected.

A taxpayer may use a combination of accounting methods as long as income is clearly reflected.

A taxpayer may use a combination of accounting methods as long as income is clearly reflected.

Sheena Maskell   53   2 Replies

Sheena Maskell

Many taxpayers use the LIFO method of inventory valuation because during inflationary periods, LIFO ...

Many taxpayers use the LIFO method of inventory valuation because during inflationary periods, LIFO ...

Many taxpayers use the LIFO method of inventory valuation because during inflationary periods, LIFO normally results in the lowest inventory value and hence the lowest taxable income.

Sheena Maskell   88   2 Replies

Sheena Maskell

Contracts for services including accounting, legal, and architectural do not qualify for long-term ...

Contracts for services including accounting, legal, and architectural do not qualify for long-term ...

Contracts for services including accounting, legal, and architectural do not qualify for long-term contract treatment.

Sheena Maskell   56   2 Replies

Sheena Maskell

Interest is not imputed on a gift loan between two individuals totaling $12,000 except when the ...

Interest is not imputed on a gift loan between two individuals totaling $12,000 except when the ...

Interest is not imputed on a gift loan between two individuals totaling $12,000 except when the borrowed funds are used to purchase income-producing property.

Sheena Maskell   64   2 Replies

Sheena Maskell

When preparing a tax return for a short period, the taxpayer should annualize the income if the ...

When preparing a tax return for a short period, the taxpayer should annualize the income if the ...

When preparing a tax return for a short period, the taxpayer should annualize the income if the short period return
A) is the last return for a decedent who died on June 15.
B) is the first return for a corporation created on June 1.
C

Sheena Maskell   79   2 Replies

Sheena Maskell

Under the cash method of accounting, all of the following are true with the exception of:

Under the cash method of accounting, all of the following are true with the exception of:

Under the cash method of accounting, all of the following are true with the exception of:
A) Fixed assets are always expensed as the taxpayer pays for the assets.
B) Gross income includes the value of property received.
C) To some exte

Sheena Maskell   78   2 Replies

Sheena Maskell

Under UNICAP, the following overhead costs are included in inventory:

Under UNICAP, the following overhead costs are included in inventory:

Under UNICAP, the following overhead costs are included in inventory:
A) factory utilities, rent, insurance and depreciation.
B) officers' salaries and factory administration.
C) research and experimentation.
D) payroll, purc

Sheena Maskell   78   2 Replies

Sheena Maskell

Which of the following statements regarding UNICAP is incorrect?

Which of the following statements regarding UNICAP is incorrect?

Which of the following statements regarding UNICAP is incorrect?
A) The UNICAP rules result in more costs being included in inventory for tax purposes than for financial accounting.
B) Taxpayers with gross receipts averaging more than $10,

Sheena Maskell   172   2 Replies

Sheena Maskell

In 2010, Richard's Department Store changes its inventory method from FIFO to LIFO. Richard's uses ...

In 2010, Richard's Department Store changes its inventory method from FIFO to LIFO. Richard's uses ...

In 2010, Richard's Department Store changes its inventory method from FIFO to LIFO. Richard's uses the simplified LIFO method. Richard's year-end inventory under FIFO is as follows: 2009- $300,000; 2010 - $350,000. The 2009 price index

Sheena Maskell   94   2 Replies

Sheena Maskell

When accounting for long-term contracts (other than those for services), all of the following ...

When accounting for long-term contracts (other than those for services), all of the following ...

When accounting for long-term contracts (other than those for services), all of the following accounting methods are sometimes acceptable with the exception of
A) the cash method of accounting.
B) the completed contract method.
C) the

Sheena Maskell   50   2 Replies

Sheena Maskell

Under the percentage of completion method, gross income is reported

Under the percentage of completion method, gross income is reported

Under the percentage of completion method, gross income is reported
A) when the contract is completed.
B) using a percentage that is determined by dividing current year costs by the expected total revenue.
C) based on the portion of wo

Sheena Maskell   60   2 Replies

Sheena Maskell

This year, Hamilton, a local manufacturer of off-shore drilling platforms, entered into a contract ...

This year, Hamilton, a local manufacturer of off-shore drilling platforms, entered into a contract ...

This year, Hamilton, a local manufacturer of off-shore drilling platforms, entered into a contract to construct a drilling platform that will be placed in the North Atlantic Ocean. The total contract price is $5,000,000, and Hamilton estimates the to

Sheena Maskell   90   2 Replies

Sheena Maskell

Bergeron is a local manufacturer of off-shore drilling platforms. This year, Bergeron entered into a ...

Bergeron is a local manufacturer of off-shore drilling platforms. This year, Bergeron entered into a ...

Bergeron is a local manufacturer of off-shore drilling platforms. This year, Bergeron entered into a contract to construct a drilling platform, which will be placed in the North Atlantic Ocean. The total contract price is $5,000,000, and Bergeron est

Sheena Maskell   180   2 Replies

Sheena Maskell

This year, a contractor agrees to build a building for $2,000,000, which will be completed by the ...

This year, a contractor agrees to build a building for $2,000,000, which will be completed by the ...

This year, a contractor agrees to build a building for $2,000,000, which will be completed by the end of next year. The builder's cost is estimated to be $1,700,000. The actual costs this year are $800,000 and next year's actual costs are $

Sheena Maskell   126   2 Replies

Sheena Maskell

In which of the following transactions may the installment method not be used?

In which of the following transactions may the installment method not be used?

In which of the following transactions may the installment method not be used?
A) a sale of an antique
B) a sale of shares of corporate stock
C) a sale of farmland used in a farming business
D) a sale of a boat held for personal u

Sheena Maskell   80   2 Replies

Sheena Maskell

Which of the following conditions are required for the use of the installment method?

Which of the following conditions are required for the use of the installment method?

Which of the following conditions are required for the use of the installment method?
A) Sale of property at a gain.
B) The taxpayer cannot be on the cash method.
C) The value of the obligations received is determinable at the date of

Sheena Maskell   348   2 Replies

Sheena Maskell

Kyle sold land on the installment basis for $100,000. His basis in the land was $70,000. Kyle ...

Kyle sold land on the installment basis for $100,000. His basis in the land was $70,000. Kyle ...

Kyle sold land on the installment basis for $100,000. His basis in the land was $70,000. Kyle received a $40,000 down payment and a real estate installment sale contract calling for $60,000 in additional payments in future years. In addition, Kyle pa

Sheena Maskell   177   2 Replies

Sheena Maskell

Last year, Albert purchased property from Victoria by assuming an existing mortgage of $33,000 and ...

Last year, Albert purchased property from Victoria by assuming an existing mortgage of $33,000 and ...

Last year, Albert purchased property from Victoria by assuming an existing mortgage of $33,000 and agreed to pay an additional $27,000, plus interest, in the 6 years following the year of sale (i.e. $4,500 annual payments for six years, plus interest

Sheena Maskell   68   2 Replies

Sheena Maskell

On June 11, two years ago, Gia sold land with a cost of $15,000 for $45,000. Gia collected $20,000 ...

On June 11, two years ago, Gia sold land with a cost of $15,000 for $45,000. Gia collected $20,000 ...

On June 11, two years ago, Gia sold land with a cost of $15,000 for $45,000. Gia collected $20,000 initially and is scheduled to receive $5,000 each year for five years starting last year plus an acceptable rate of interest. This year, Gia decided to

Sheena Maskell   73   2 Replies

Sheena Maskell

On May 18, of last year, Carter sells unlisted stock with a cost of $24,000 for $60,000. Carter ...

On May 18, of last year, Carter sells unlisted stock with a cost of $24,000 for $60,000. Carter ...

On May 18, of last year, Carter sells unlisted stock with a cost of $24,000 for $60,000. Carter collects $20,000 initially and is scheduled to receive $10,000 each year for four years starting this year plus an acceptable rate of interest. After rece

Sheena Maskell   190   2 Replies

Sheena Maskell

On May 18, of last year, Yuji sold unlisted stock with a cost of $12,000 for $30,000. Yuji collected ...

On May 18, of last year, Yuji sold unlisted stock with a cost of $12,000 for $30,000. Yuji collected ...

On May 18, of last year, Yuji sold unlisted stock with a cost of $12,000 for $30,000. Yuji collected $10,000 initially and is scheduled to receive $5,000 each year for four years starting this year plus an acceptable rate of interest. After receiving

Sheena Maskell   104   2 Replies

Sheena Maskell

All of the following are considered related for purposes of Section 453(e) installment sales ...

All of the following are considered related for purposes of Section 453(e) installment sales ...

All of the following are considered related for purposes of Section 453(e) installment sales except
A) parents.
B) children.
C) sister.
D) controlled corporation.

Sheena Maskell   65   2 Replies

Sheena Maskell

Jennifer made interest-free gift loans to each of her four children as follows:John borrowed $9,500 ...

Jennifer made interest-free gift loans to each of her four children as follows:John borrowed $9,500 ...

Jennifer made interest-free gift loans to each of her four children as follows:
John borrowed $9,500 to purchase an automobile. His net investment income is $1,500.
Rick borrowed $50,000 to purchase a trailer. His net investment income is $

Sheena Maskell   55   2 Replies

Sheena Maskell

In 2010 Anika Co. adopted the simplified dollar-value LIFO method. Inventory under FIFO in 2009 and ...

In 2010 Anika Co. adopted the simplified dollar-value LIFO method. Inventory under FIFO in 2009 and ...

In 2010 Anika Co. adopted the simplified dollar-value LIFO method. Inventory under FIFO in 2009 and 2010 is $400,000 and $600,000, respectively. The Consumer Price Index for 2009 is 115 and the Consumer Price Index in 2010 is 125 percent. How much is

Sheena Maskell   87   2 Replies

Sheena Maskell

Natalie sold a machine for $140,000. The machine originally cost $95,000 and $15,000 of MACRS ...

Natalie sold a machine for $140,000. The machine originally cost $95,000 and $15,000 of MACRS ...

Natalie sold a machine for $140,000. The machine originally cost $95,000 and $15,000 of MACRS depreciation had been allowable. The buyer assumed a lien of $40,000, paid $30,000 cash down and agreed to pay $10,000 per year for seven years plus interes

Sheena Maskell   127   2 Replies

Sheena Maskell

Nick sells stock of a non-publicly traded corporation with a $7,000 adjusted basis for $10,000. Nick ...

Nick sells stock of a non-publicly traded corporation with a $7,000 adjusted basis for $10,000. Nick ...

Nick sells stock of a non-publicly traded corporation with a $7,000 adjusted basis for $10,000. Nick receives a $2,000 down payment with the balance of $8,000 due the following year. Nick is unable to collect the remaining $8,000 and, after incurring

Sheena Maskell   151   2 Replies

Sheena Maskell

Emily made the following interest free loans to her children:$10,000 to Erin for a down payment on a ...

Emily made the following interest free loans to her children:$10,000 to Erin for a down payment on a ...

Emily made the following interest free loans to her children:
$10,000 to Erin for a down payment on a new home. Her net investment income for the year is $1,300.
$50,000 to Sasha to purchase stock. Her net investment income for the year is

Sheena Maskell   68   2 Replies

Sheena Maskell

Winnie made a $70,000 interest-free loan to her son, Tad, who used the money to retire a mortgage on ...

Winnie made a $70,000 interest-free loan to her son, Tad, who used the money to retire a mortgage on ...

Winnie made a $70,000 interest-free loan to her son, Tad, who used the money to retire a mortgage on his personal residence. Tad's only source of income was salary of $35,000 and $990 interest income on a savings account. The relevant Federal in

Sheena Maskell   53   2 Replies

Sheena Maskell