Doughnuts directly conflicted with his goal

Assignment Help Accounting Basics
Reference no: EM131124928

Research Problem 2. Your client, John Butler, is an avid Houston Astros fan. Last March at the Astros' home opener, as a result of a random drawing of those in attend- ance at the game, John won 300 Shipley Do-Nut coupons. Each coupon entitled him to a cup of coffee and a free doughnut or a dozen doughnut holes.

John used some of the coupons (approximately 20), but he found that eating so many doughnuts directly conflicted with his goal of losing weight. The unused cou- pons expired on January 1, 2015. Thus, John was surprised when he received a Form 1099 in February 2015 that valued his prize at $900. John would like to know whether the value of the doughnut coupons should be included in income and asks you to research his question. If you conclude that their value should be included in income, John also would like to know if he can reduce his gross income by including in income only the value of the coupons that he used. He has the unused coupons as documentation that neither he nor anyone else used them.

Reference no: EM131124928

Questions Cloud

What is the firm''s economic profit or loss in equilibrium : In equilibrium, approximately what is the firm's total cost and total revenue?
Ability-enthusiasm-stability and concern for others : Describe the following leadership qualities: ability, enthusiasm, stability, and concern for others. (II) Use examples from our book to provide the details of how each quality enhances leadership effectiveness. (III) Explain what results from lack of..
Calculate manufacturing overhead rates : Activity-based costing Brooklyn Cycles produces custom bicycles and has used a traditional manufacturing overhead application rate based on direct labor hours. Currently, overhead is applied at the rate of $26/DLH. Brooklyn is now considering usin..
Relationship in efficiency and ethical behavior for leaders : Based on the response to Hurricane Katrina, what is the relationship between efficiency and ethical behavior for leaders? How could the response to the Hurricane Katrina disaster been more effective, and thus more ethical?
Doughnuts directly conflicted with his goal : Research Problem 2. Your client, John Butler, is an avid Houston Astros fan. Last March at the Astros' home opener, as a result of a random drawing of those in attend- ance at the game, John won 300 Shipley Do-Nut coupons. Each coupon entitled him..
Have you seen it used in the human services field : Select one theory that you have personally experienced in your career or that you find particularly interesting in its approach. Have you seen it used in the Human Services field or in another field? Was it effective or ineffective? Why does it ho..
Construct a model in the spirit of kinked demand : Construct a model in the spirit of kinked demand for the setting of an N firm oligopoly.
What percentage of the time is the cashier busy : Beate Klingenberg manages a Poughkeepsie, New York, movie theater complex called Cinema 8. Each of the eight auditoriums plays a different film; the schedule staggers starting times to avoid the large crowds that would occur if all 8 movies started a..
Cost of goods manufactured : The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine-hours was recorded for the year. All raw materials ultimately become direct materials-none are ..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Which organizations establish gaap for not for profit

Which organizations establish GAAP for not for profit health care organizations? Do these organizations establish GAAP also for governmental health care organizations?

  Problem on journalize the entries

On January 1, 20xx, alpha Corporation isuued $800,000 of 10%, 30-year bonds to lenders at par (100). Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries.

  Accelerated method of calculating depreciation

A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a

  If 2000 units remain unsold at the end of the month and

a business operated at 100 of capacity during its first month and incurred the following costs production costs 10000

  If the company keeps and overhauls the old boat it will be

little boat inc. has a boat that is worn out.nbspnbspit must be either overhauled or replaced with a new boat. you have

  Accounts receivable from sales transactions were 45338 at

accounts receivable from sales transactions were 45338 at the beginning of the year and 63068 at the end of the

  For each of the following independent situations determine

for each of the following independent situations determine whether any of the expenditures qualify as deductible

  The net income was 1250000 and the declared dividends on

the net income was 1250000 and the declared dividends on the common stock were 8000000 for the currenct year. the

  Shelby company produces three products product x product y

shelby company produces three products product x product y and product z. data concerning the three products follow per

  Suenos manufacturing company estimates that 430 purchase

suenos manufacturing companyusing 12 months of data on purchasing cost and number of purchase orders ran a regression

  The petty cash fund balance was increased

The petty cash fund balance was increased $100 to $300 on April 20. Prepare the journal entries to record transactions related to petty cash for the month of April.

  Partnership interest at the end of specific year

At the end of the year, Roger's share of partnership liabilities increased by $20,000. Roger's basis in the partnership interest at the end of the year is:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd