This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: recorded 29) Only the second policy is the dividend taxable. 30) a) he should record a $400 income per week because it is a compensation for his services as an employee for the motel b) he should record the $1,000 as income because he is still receiving that as a compensation for his services and the fact that he transfers it to his son does not matter c) he should record the $500 as income 32) a) the property transferred pursuant to a divorce decree does not give rise to income b) Is not treated as alimony c) generates tax deduction of $1,500 per month for Arnold and income to Barbara of $1,500. 39) The cancellation of debts results in income of $10,000 if the corporation is not in bankruptcy, if in bankruptcy there is no income. Before the cancellation, the assets were $100,000 and the debt were $140,000. After the cancellation the assets are $100,000 and the debts are $90,000....
View Full Document
- Spring '11
- Generally Accepted Accounting Principles, rental income, Cal cory