Homework Week 2 - Week #2 Homework Solutions Problem 4-25 B...

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Unformatted text preview: Week #2 Homework Solutions Problem 4-25 B illy Dent has the fo llow ing renta l income: (1) Rent rece ived in January 2008, but due in December 2007. . . . . . . . . . . . $5 ,000 (2) Rent rece ived in December 2008 , not due until January 2009 . . . . . . . . . . 4 ,000 Total rental income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . $9 ,000 (The security deposit is not considered income because it is refundable.) Problem 4-32 Property transferred pursuant to a divorce decree does not give rise to income for tax purposes. Therefore: (a) does not generate income (b) is not treated as alimony, because the house payments do not end on death (c) generates a tax deduction of $1,500 per month for Arnold and income to Barbara of $1,500 per month. The child support portion of the payment is not tax deductible nor is it included in the gross income of the recipient. deductible nor is it included in the gross income of the recipient....
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This note was uploaded on 11/30/2010 for the course ACCOUNTING AC553 taught by Professor Davey during the Summer '10 term at DeVry Irvine.

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Homework Week 2 - Week #2 Homework Solutions Problem 4-25 B...

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