What is the business income for the fiscal period

Assignment Help Accounting Basics

Reference no: EM133921830

Problem I

Mrs. and Mr. Anders have three children who, at the end of the current year, are 4, 12, and 18 years of age. The 18 year old child has a serious physical infirmity, but does not qualify for the disability tax credit. Mrs. Anders had earned income of $18,000, while Mr. Anders had earned income of $69,000. Payments for child care were $190 per week for 50 weeks. Mr. Anders' net income exceeded that of Mrs. Anders in 2024.

During the current year, Mrs. Anders spent six weeks in jail as the result of a conviction for possession of an illegal substance. Following her release, Mr. Anders spent three weeks in the hospital because of a stress related disorder. Get the instant assignment help.

Determine the maximum deduction for child care expenses and identify the individual who can make the claim.

Problem II

Frank's Auto Body, a sole proprietorship, keeps its accounting books and records on a cash basis. During its 2024 fiscal period, its first year of operation, the business has cash sales of $71,200. At the end of the fiscal period, an additional $22,450 of revenues are receivable. Of the amounts received, $7,100 was for services that will only be delivered in the 2024 fiscal period. Frank estimates that $650 of the 2024 receivables are doubtful of collection. What is the business income for the 2024 fiscal period?

Problem III

In 2023, Jack Harris sells capital property with an ACB of $87,200 for $105,300. In accordance with the sales agreement he receives a down payment of $5,300 in 2023, a second payment of $50,000 in 2024, and a final payment of $50,000 in 2025. What is the minimum amount that Jack will have to include in his income for 2023, 2024, and 2025 as a result of the sale?

Reference no: EM133921830

Questions Cloud

Importance of free appropriate public education : Describe and explain The purpose and a brief overview of IDEA Part C, including the importance of Free Appropriate Public Education (FAPE).

Which complicate what you thought of as fairy tales : Which stories most challenge or complicate what you thought of as fairy tales?

Explain the three most relevant aspects of the definition : Explain the three most relevant aspects of the definition of Internal Auditing and explain the nature, role and importance of these aspects for an organizatio

Provide example of a detective control that can help achieve : Explain the nature of the Validity control objective. Provide an example of a detective control that can help achieve this objective.

What is the business income for the fiscal period : Frank estimates that $650 of the 2024 receivables are doubtful of collection. What is the business income for the 2024 fiscal period?

Identify ways for a parent or caregiver to promote fluency : You should be able to identify several ways for a parent or caregiver to promote fluency and language development at home.

What is the term commonly used to describe the process : What is the term commonly used to describe the process by which the employer deducts funds from each employee and remits these funds to the union?

How should this event be recorded on december : On December 1, 2023, Sebastian University received cash. How should this event be recorded on December 31, 2023, assuming Sebastian is a public university?

What is professionalism in social work : What is professionalism in social work? How do you convey professionalism in written communication?

User Account

All Pages