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Martha was considering starting a new business. During her preliminary investigations, she incurred the following expenditures: Salaries $20,000 Travel 18,000 Interest on short term note 2,000 Professional fees 13,000 Martha begins the business on June 1 of the...

Janice Morgan, age 32, is single and has no dependents. She is a freelance writer. In January 2011, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She...

A list of the items that Audra sold and the losses she incurred during the current tax year is as follows: Brown, Inc. stock $ 1,100 Audra’s personal use car 11,000 Audra’s personal residence 12,000 City of Newburyport bonds 900 She also had a theft loss of $1,500 on...

Duck, an accrual basis corporation, sponsored a rock concert on December 29, 2012. Gross receipts were $300,000. The following expenses were incurred and paid as indicated: Expense   Payment Date Rental of coliseum $ 25,000 December 21, 2012 Cost of goods sold:...

Trevor, a friend of yours from high school, works as a server at the ST Café. He asks you to help him prepare his Federal income tax return. When you inquire about why his bank deposits substantially exceed his tip income, he confides to you that he is a bookie on the...

You are a senior government major at City University. Two of the five seats on city council are up for election. Friends, knowing your interest in local politics, encourage you to run for city council. You are elected by a two to one majority. You received campaign...

Amber, a publicly held corporation (not a TARP recipient), currently pays its president an annual salary of $900,000. In addition, it contributes $20,000 annually to a defined contribution pension plan for him. As a means of increasing company profitability, the board...

Vermillion, Inc., a publicly held corporation (not a TARP recipient), pays the following salaries to its executives:   Salary Bonus Retirement Plan Contribution CEO $2,000,000 $100,000 $80,000 Executive vice president 1,800,000 90,000 72,000 Treasurer 1,600,000...

Terry traveled to a neighboring state to investigate the purchase of two hardware stores. His expenses included travel, legal, accounting, and miscellaneous expenses. The total was $52,000. He incurred the expenses in June and July 2012. Under the following...