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Whitepunk [10]
1 year ago
12

On Dec. 15, 2018, Jack’s Tax Prep, a cash-method taxpayer, prepaid $5,000 worth of deductible interest on a business loan. The i

nterest won’t accrue until January 2019.
Jack’s Tax Prep will be displaying at a tradeshow in January 2019. On Dec. 16, 2018, Jack’s prepaid the $4,000 trade show booth rental expense. Use of the booth will occur in January 2019.

In addition, On Dec. 28, 2018, Ed’s Equipment repaired some equipment in Jack’s office and billed Jack’s $2,000. Jack’s received the invoice on Dec. 28, 2018 and paid the $2,000 invoice on Jan. 29, 2019.

How much of the $11,000 in deductible business expenses may Jack’s Tax Prep deduct in 2018?


In addition to the $11,000 in expenses, in Dec. 2018, Jack’s prepaid two years’ worth of office rent ($4,000/month * 24 months = $96,000). The rent covers Jan. 1, 2019 through Dec. 31, 2020. How much of the $96,000 prepaid rent can Jack’s deduct in 2018?


Instead, Jack’s only prepaid six months’ worth of office rent ($4,000/month * 6 months = $24,000) in Dec. 2018. The rent covers Jan. 1, 2019 through June. 30, 2019. How much of the $24,000 prepaid rent can Jack’s deduct in 2018?
Business
2 answers:
pychu [463]1 year ago
6 0

Answer:

Explanation:

There are three questions, I am providing their answers in sequence.

Q-1: How much of the $11,000 Jack’s Tax Prep deduct in 2018?

As Jack has prepaid all of the $11000 ( $5000 + $4000 + $2000) in 2018, hence all expenses were deducted in 2018.

Q-2: Of the $96,000, how much prepaid rent Jack can deduct in 2018?

All of the $96000 were prepaid in 2018, hence complete amount can be deducted.

Q-3: Of the $24,000, how much prepaid rent Jack can deduct in 2018?

All of the $24000 were prepaid in 2018, hence complete amount can be deducted.

il63 [147K]1 year ago
4 0

Last question, answer is 24K, before last, answer is 0.

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ElenaW [278]

Answer:

fringe benefit expense   4,300

Wages expense            72,000

Payroll tax expense        8, 100

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Explanation:

The first entry will be the payment to the employees wages, benefit and payroll taxes.

Then, in the second entry we will capitalize this expenses into the WIP for the amount of direct labor.

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Answer:

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Explanation:

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Which best compares and contrasts Business Financial Management and Insurance Services?
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Choose all the scenarios below that would cause a decrease in the supply of labor in the agricultural industry.
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Answer:

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With workers getting older and being unable to be as productive as they used to be, they will have to drop out of industries that require physical strength including farming. This will therefore reduce people working in agriculture.

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7 0
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Century Real Estate’s primary broker is John Kerr. John is licensed as the broker of that company and he is licensed as a broker
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The broker is doing two different jobs; so it is okay to have two different licenses.

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In this case, since the broker is doing two different jobs then it is okay for him to have two different licenses. In a hypothetical case that the individual Broker was doing the same job role for two different companies then that would be considered a form of conflict of interest and may cause problems with both firms in the future. Since this is not the case, then he should not have any problem.

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