User Account

All Pages

What are the tax implications of the repayment

Assignment Help Taxation
Reference no: EM13506505

Last year Acme paid Ralph $15,000 to install a new air-conditioning unit at its headquarters building. The air conditioner did not function properly, and this year Acme requested that Ralph return the payment. Because Ralph could not repair one critical part in the unit, he refunded the cost of the repair, $5,000, to Acme.

a. Is Ralph required to include the $15,000 payment he received last year in his gross income from last year?

b. What are the tax implications of the repayment if Ralph was in the 35 percent tax bracket when he received the $15,000 payment from Acme, but was in the 28 percent tax bracket when he refunded $5,000 to Acme?

c. How would you answer part b. if Ralph refunded $2,500 to Acme and not $5,000?

Reference no: EM13506505

Questions Cloud

How much stock does the company own in this category : An activewear buyer bought $24,000.00 of stock in a blue tank top. This reflected 35% of the activewear tanks purchased. How much stock does the company own in this category, rounded to the nearest dollar?
What is the orientation angle of the second polarizer : The light goes through a second polarizer and exits with an intensity of 225 W/m squared, What is the orientation angle of the second polarizer
Are shasta employees required to include the value : Are Shasta's employees required to include the value of the shirts in income?
How much taxable gain does the home sale generate : This year, Leron and Sheena sold their home for $750,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena?
What are the tax implications of the repayment : What are the tax implications of the repayment if Ralph was in the 35 percent tax bracket when he received the $15,000 payment from Acme, but was in the 28 percent tax bracket when he refunded $5,000 to Acme?
Using the sum of the year method : Using the sum of the year method?
Audit of the effectiveness of mittryan : What is the initial sample size you would use for test - Assume your sample size was 60, briefly describe how you would select a random sample for testing this control.
A company purchased a new copy machine : Four years ago a company purchased a new copy machine. Due to deterioration, soon a new copy machine will be needed.
Compute the force exerted by the gas on one of the walls : A sealed cubical container 17.0 cm on a side contains three times Avogadro's number of molecules at a temperature of 21.0°C. Find the force exerted by the gas on one of the walls of the container

Reviews

Write a Review

Taxation Questions & Answers

  What are the us tax consequences of hans us activities

Compute Cholati's branch profits tax, and determine its branch interest withholding tax obligations. Assume that Cholati does not reside in a treaty country - What are the tax advantages of operating in the United States through an unincorporated b..

  Question independence is taken the cornerstone of the

question independence is taken the cornerstone of the accounting profession. in relation to the audit the auditor could

  When will the statute of limitations expire

Denise filed her 2003 tax return on February 4, 2004. There was no material understatement of income on her return and the return was property signed and filed. When will the statute of limitations expire for Denise's tax return?

  Uses straight-line depreciation for tax and book purposes

Prepare KJJ Corp's Form 1120 and related schedules - Schedules A, C, E, J, K, L, M-1, and M-2. (Do not complete FormPrepare KJJ Corp's Form 1120 and related schedules - Schedules A, C, E, J, K, L, M-1, and M-2.

  Which depreciation method offers the tax advantage

how much extra depreciation will Alaska Freight get to deduct for the first year as compared with the straight-line method?

  What effect does purchase of buildings financed by mortgage

Consider initial time interest is more than 1 and others are less than Want to understand if there is an increase, decrease, or no effect.

  In the present year the doe partnership received revenues

in the present year the doe partnership received revenues of 100000 and paid the subsequent amounts 20000 in rent and

  Are securities registered in the corporation name

Explain the manner in which each of the above procedures might be tested and are securities registered in the corporation name?

  Discuss the role auditors played

Discuss briefly the accounting irregularities found in ENRON and HIH's corporate collapse. Also discuss, the role auditors played and how they could have helped to avoid these collapses.

  Question 1 an employer provides taxable fringe benefits of

question 1 an employer provides taxable fringe benefits of 11000 gst inclusive for hisemployees during the relevant

  Stacey has a small salon that she has run for a last few

stacey has a small salon that she has run for a last few years as a sole proprietorship. the proprietorship uses cash

  Internationalisation of regulations

Identify three areas to support the above statement and discuss how these areas would benefit a country in trade and commerce.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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