acc421wa2 - Chapter 4 34 TAX FILE MEMORANDUM August 29,...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4 34 TAX FILE MEMORANDUM August 29, 2010 To: Sue Apple From: Thomas Baker Subject: Color Paint Shop, Inc. Tax reporting for contested income Color Paint Shop, Inc. is an accrual basis client. Since the work was being contested in 2009, Income should be recognized when the claim is settled. The claim was settled in 2010 for $800.00 and should be reported as income in 2010 35 A. The income should be reported in 2009, since the income was available in 2009. B. The income should be reported in 2009, since the income was available in 2009. C. The income should be reported in 2010, since the income was available in 2010. 36. A. Income on the interest earned of $250.00 for 2009. B. Income on the interest earned of $416.00 for 2009. C.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Income on the total interest earned of $2,975.00 for 2009 45. A. There would be no consequences, since this is concerning the equity of their personal residence. B.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/16/2011 for the course ACCOUNTING 421 taught by Professor ?? during the Spring '10 term at Thomas Edison State.

Page1 / 4

acc421wa2 - Chapter 4 34 TAX FILE MEMORANDUM August 29,...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online