acct hw 3

acct hw 3 - Bryan Whalen 6. They are required to include...

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6. They are required to include the $6,000 in gross income for 2007. 12. It would be better for Rex to sell the car and pay tax on a $5,000 gain and the tuition would be tax deductible. 21. The CEO will experience an increase in taxable income of 30000 for 2007 and Rose Corporation will experience a decrease in taxable income of 30000 for 2007. 23. She would be required to include the full payment of $8900 because she has recovered the entire investment. 27. He should use a cash based accounting method because he can defer his income and tax for two months. However if he wanted to pay taxes sooner than later he should use the accrual accounting method so he can recognize income earlier. 29. a. 10500-10000+200= $700 b. 10000-3000= $7000 c. 10000-900= $9100 35. a $800 to gross income for 2007 b. $800 to gross income for 2007 c. $800 to gross income for 2008 38. a. She constructively received $240,000 in 2008 b. To defer part of her income taxes to 2009. 44. a. Liz= 20500+27500+6000+950+900= $55850
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This note was uploaded on 04/08/2008 for the course ACCT 3221 taught by Professor Armentor during the Spring '08 term at LSU.

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acct hw 3 - Bryan Whalen 6. They are required to include...

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