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   ACCT 429 Week 2 Homework

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ACCT 429 Week 2 Homework
« on: Feb 13^th, 2016, 3:51pm »

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ACCT 429 Week 2 Homework

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ACCT 429 Week 2 Homework

This pack of ACCT 429 Week 2 Homework comprises:
1. (TCOs 1, 2, and 3) A characteristic of FUTA is that
2. (TCOs 2 and 3) Provisions in the tax law that promote energy conservation and more use of alternative (nonfossil) fuels can be justified by
3. (TCOs 1, 2, 3, and 5) For purposes of determining gross income, which of the following is true?
4. (TCOs 1, 2, 3, and 5) Darryl, a cash basis taxpayer, gave 1,000 shares of Copper Company common stock to his daughter on September 29, 2011. Copper Company is a publicly held company that has declared a $1.00 per share dividend on September 30th every year for the last 20 years. Just as Darryl had expected, Copper Company declared a $1.00 per share dividend on September 30th, payable on October 15th, to stockholders of record as of October 10th. The daughter received the $1,000 dividend on October 18, 2011. How does this information impact who must recognize the dividend as income?
5. (TCOs 1, 2, 3, and 5) Harold bought land from Jewel for $150,000. Harold paid $50,000 cash and gave Jewel an 8% note for $100,000. The note was to be paid over a five-year period. When the balance on the note was $80,000, Jewel began having financial difficulties. To accelerate her cash inflows, Jewel agreed to accept $60,000 cash from Harold in final payment of the note principal.
6. (TCOs 4 and 5) Which of the following is incorrect?
7. (TCOs 4 and 5) Rex, a cash basis calendar year taxpayer, runs a bingo operation that is illegal under state law. During 2010, a bill designated H.R. 9 is introduced into the state legislature. If enacted, the bill would legitimize bingo games. In 2011, Rex had the following expenses:
8. (TCOs 4 and 5) During the current year, Kingbird Corporation (a calendar year C corporation) had the following income and expenses:
9. (TCOs 4 and 5) Jed is an electrician. Jed and his wife are cash basis taxpayers and file a joint return. Jed wired a new house for Alison and billed her $15,000. Alison paid Jed $10,000 and refused to pay the remainder of the bill, claiming the fee to be exorbitant. Jed took Alison to small claims court for the unpaid amount and was awarded a $2,000 judgment. Jed was never able to collect the judgment nor the remainder of the bill from Alison. What amount of loss may Jed deduct in the current year?
10. (TCOs 4 and 5) Nick, an attorney, owns a separate business (not real estate) in which he participates. He has one employee who works part time in the business. Which statement is correct?

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