Essay about Homework Chapter 4

Words: 1685
Pages: 7
Open Document
Cinthia Gutierrez
Acc 307
Homework Chapter 4

3. Allen visits Reno, Nevada, once a year to gamble. This year his gambling loss was $25,000. He commented to you, “At least I didn’t have to pay for my airfare and hotel room. The casino paid that because I am such a good customer. That was worth at least $3,000. “What are the relevant tax issues for Allen? Allen received something of value from the casino. Under the broad concept of income, the airfare and hotel accommodations would be considered income. However, Allen could argue that the income should be matched with his $25,000 in gambling losses on the trip, and when the income and losses are combined, the net effect is an economic loss

7. Why does the constructive receipt …show more content…
Both loans were due on demand. No interest was charged on the loans, and the Federal rate was 8% for all relevant dates. Vito used the money to purchase a boat, and he had $1,100 of investment income. Determine the tax consequences to Vito and Vito, Inc. in each of the following situations:
a. The loans are considered employer-employee loans.
The employer-employee loan would be eligible for the $10,000 exemption through June 30, 2011. However, in July 2012, the total outstanding loans exceed $10,000. The $100,000 exemption does not apply to these loans. Therefore, interest is imputed on the $12,000 amount of the loans for the period July through December 2012. Vito, Inc. has interest income and Vito has compensation income of $480 [.08($12,000 6/12)]. Vito also has interest expense of $480 and Vito, Inc. has compensation expense of the same amount. Note that employer-employee loans are not eligible for the $100,000 exemption
b.The loans are considered corporation-shareholder loans.
A corporation-shareholder loan is not eligible for the $100,000 exemption and usually does not qualify for the $10,000 exemption (i.e., cannot satisfy the requirement that tax avoidance not be a principal purpose of the loan). Therefore, for 2011 and 2012, the corporation has interest income and dividends paid (not deductible) as follows: 2011 ($8,000 8% 6/12) $320 2012 ($8,320 8% 6/12) ($8,320 + $333 + $4,000)(.08)(6/12) $333 506 $839 Vito has dividend income and interest
Show More

Related Documents: Essay about Homework Chapter 4

Auditng Chapter 4 Homework Essay

Chapter 4 Homework 4.1 Business risk is the risk that could adversely affect company’s ability to achieve objectives and execute strategies. 4.3 Clients financial statements are effected by environment including economic and political event, weather occurrence, technological advances and social and demographic pattern. Auditors need to make sure the statements are fairly presented. 4.5 Overstating revenue and Asset; Understanding expenses and liabilities; giving disclosures that are…

Words 330 - Pages 2

Essay on CCJ Chapter 4 Homework

Sergii Kravchenko CCJ 1020 Diane Evett, M. S. Chapter 4 Homework U. S. Department of Homeland Security The Department of Homeland Security, charged with the primary responsibilities of protecting the United States and its territories from and responding to terrorist attacks, man-made accidents, and natural disasters, first proposed by the U.S. Commission on National Security/21st Century in January 2001 and expedited in response to the September 11 attacks on World Trade Center, Pentagon, and several…

Words 1266 - Pages 6

Real estate Homework chapter 4 Essay

4.1 Factor of production is the inputs that are used in the production of goods or services in the attempt to make an economic profit. The four categories are: 1) Capital 2) Labor 3) Raw materials 4) Land Land differ from the other factors because it is a fixed location. You can’t move it. 4.2 Because in dividing up the value of the finished product among the four factors of production (Raw materials, Labor, Land, Capital), we can see that the defining characteristic of land that differentiates…

Words 333 - Pages 2

ACC560 STUDENT GUIDE Essay

decision making (6th ed.). Hoboken, NJ: John Wiley and Sons. WileyPLUS will be used in this course and is integrated with the online course shell. Supplemental Resources Lamoreaux, M. G. (2011). Planning for Uncertainty. Journal of Accountancy, 212(4) 32-36. Lamoreaux, M. G. (2012). A New System for Recognizing Revenue. Journal of Accountancy, 213 (1) 30-35. Richards, G. E. and Spencer, S. L (2012). Three Common Currency-Adjustment Pitfalls. Journal of Accountancy, 213(2) 30-35. COURSE LEARNING…

Words 1109 - Pages 5

Lecture and Additional Problem Essay examples

covered in tutorials is set out below, these are different from those questions that are to be completed at home .The homework exercises are additional and will help to reinforce your knowledge of the chapter. There will also be additional problems and cases (including past exam questions) provided to you in the tutorial each week to be worked on in class. Please complete the homework exercises before coming to class as well as the tutorial exercises. The tutorials are always one week behind the lectures…

Words 478 - Pages 2

World Geography Lesson Plans Essay

Procedures, 2. Introduce myself 3. Get to Know Activity Homework : Syllabus signature due Thursday ● Tuesday Objective: You will be able to apply techniques in taking notes for a reading assignment. Activities: 1. 2. Pass out books 3. Geography Haiku 4. Moodle Sign up ● Wednesday Objective: SWBAT learn how to read maps. Activities: 1. Gold Find 2. Geologist and Cartographer questions. 3. Phase 1: Map Titles Homework: Finish Geoterms TCI Login Teacher email­ r.reynolds@pactcharter…

Words 3201 - Pages 13

Bankruptcy in the United States and Comprehensive Final Exam Essay

Connect Software: New textbooks will come with the code you will need to create an account for the online homework system called Connect. This program can be accessed utilizing the URL listed above and you will submit your homework assignments (other than Writing and Excel Assignments) using this website. You can also use the Study and Practice sections of Connect to complete chapter review tutorials, page activities, self tests, and to check key figures for the assignment material. If you purchase…

Words 2445 - Pages 10

Film Studies Essay on Caliagari

a final, as well as 4 homework assignments, “one minute papers”, and an Economics Journal. Homework: There will be 4 homework assignments during the semester, each assigned at least a week before their due date. Homework will be graded based on completion. A reasonable effort will receive full credit. Note that turning in a blank page with your name or showing no work to illustrate how you arrived at a particular solution does not constitute a “reasonable effort.” Homework is due in class. However…

Words 799 - Pages 4

Chem 1035 Syllabus Essay

Preston Durrill, Instructor M 8:00-9:00, 1:30-5:00 Randolph Hall, Room 144 Tu 9:00-11:00, 4:00-5:00 Office phone: 540-231-6774 W 8:00-9:00, 1:30-5:00 Home phone: 540-961-5179 Th 9:00-12:00, 4:00-5:00 e-mail: pdurrill@vt.edu F 8:00-9:00, 1:30-3:00 Class times: 2:00-3:15 Tuesday and Thursday in McBryde 100. Evening help sessions: Wednesdays 5:00-6:30 p.m. in Hancock 209 beginning on September 4. ON WEEKS WHEN THERE IS A TUESDAY TEST, THE HELP SESSION WILL BE ON MONDAY INSTEAD OF WEDNESDAY…

Words 3548 - Pages 15

Develop An Appreciation For The Complexity Of Life

4. Develop critical thinking skills that can be use in all aspects of life. 5. Develop the skills needed to assess science in everyday life in an educated manner. 6. Develop an appreciation for the complexity of life. Topics To Be Covered: Semester 1: I. DNA Structure and Function (Chapter 11) A. DNA Structure B. DNA Replication C. From DNA to Protein D. Mutations II. Mitosis, Meiosis, and Genetics (Chapter 8.2,…

Words 844 - Pages 4