307exam2part2 - Name: _ Class: _ Date: _ ID: A BSAD307 Exam...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 BSAD307 Exam 2 Part 2 Problem 1. Sandra owns an insurance agency. The following selected data is taken from the agency balance sheet and income statement prepared using the accrual method. Revenue $250,000 Salaries and commissions 100,000 Rent 10,000 Insurance 5,000 Utilities 6,000 Accounts receivable, 1/1/2005 40,000 Accounts receivable, 12/31/2005 48,000 Accounts payable, 1/1/2005 12,000 Accounts payable, 12/31/2005 15,000 Calculate Sandra’s net profit using the cash method for 2005. 2. Neal, single and age 37, has the following items for 2005: Salary $50,000 Casualty loss on business property (8,000) Casualty loss on rental property (5,000) Personal casualty gains 3,000 Personal casualty losses (after $100 floor) (12,000) Interest expense on personal residence (7,000) Determine Neal’s taxable income for 2005. 3.
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307exam2part2 - Name: _ Class: _ Date: _ ID: A BSAD307 Exam...

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