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Mrs. Hess bakes wedding cakes as a hobby and has developed quite a local reputation for excellence. This year, she sold 29 cakes to family and friends for $200 each and spent a total of $1,700 on ingredients and decorations.
a. How much taxable income does Mrs. Hess's hobby generate if her AGI before consideration of the hobby revenues and expenses is $33,000 and she doesn't itemize deductions?
b. How would your answer change if Mrs. Hess pays enough state and local tax and makes enough charitable contributions to itemize deductions?
Accounting statements can be manipulated. Please try to give an argument pro and con on this ethical issue. Any actual public examples you would like to cite would be most appreciated by all.
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Purple Dalia, Inc. has the following balance sheet statement items: total current liabilities of $661,707; net fixed and other assets of $1,460,400; total assets of $3,334,150; and long term debt of $744,753. What is the amount of the firms’ total st..
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Dillard Co. issued $20,000,000 of 5-year, 14% callable bonds on April 1, 2014, at a market rate of 12%. Interest is payable semi-annually on September 30 and March 31. Record the entry for the issuance of the bonds. Record the entries for interest pa..
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