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Unformatted text preview: Question 34 Answer. Memo To, Susan apple Subject: Dispute over recording the income of paint shop Date 12/2012 Color paint shop.inc is an accrual basis taxpayer and can recognize income only when all the events have been occurred and they have the right to receive the income or the amount to be received can be determined with reasonable accuracy income 800 and deductible loss 200. In order to solve this first of all we should see the other party is not satisfied but in 12, 2011, they agreed to settle the dispute for $ 800 therefore the condition of all events is satisfied but the income cannot be determined with reasonable accuracy. Later on insurance company has approved this case. Thus Color paint shop can report $800 in the 2012....
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This note was uploaded on 03/07/2012 for the course BUS 603 taught by Professor Rosnin during the Spring '12 term at Rutgers.
- Spring '12