A check received for december rent 700 not deposited

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Chapter 22 / Exercise 04
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a. Check received for December rent, $700, not deposited until January 4b. Check for $1,100 to pay Bill’s state income taxes mailed December 28, cashed January 7c. Cash received in the amount of $500 for services to be rendered the following yeard. Interest of $800 credited to his savings account, added to Bill’s account balancee. Check received for January rent, $700, deposited on January 9f. Charitable contribution of $300, charged on Bill’s MasterCardg. Bills totaling $2,000 sent for services rendered during the year, uncollected as of year-end70. Comprehensive Problem.Do any of the transactions below qualify for installment reporting? If not, why not?a. Sale of property in December, with payment received in full the following January at a gainb. Sale of property at a loss, payments to be received in equal annual installments over seven yearsc. Exchange of like-kind investment property where the transfer took place in two different yearsd. Sale in one year at a gain, 90 percent of the proceeds received immediately, the remaining 10 percent in year twoe. Sale of securities at a gain, the proceeds being 13 percent a year of current fair market value to be received over the life of the sellerf. Sale of stock with zero basis for 10 percent of the gross life of the gross sales of a business for 11 years
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Chapter 22 / Exercise 04
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Beatty
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71. Research Problem.A manufacturer of pollution control facilities reported its profits on the completed-contract method. To value its raw materials and work in process, the taxpayer used the LIFO method, thus “having it both ways” (i.e., deferring profits and maximizing the cost of goods sold). The IRS claimed that the two methods are mutually exclusive and that the costs of materials, labor, supplies, etc. are to be treated as deferred expenditures, deductible only when the contracts are completed. Is the IRS correct? (See Peninsular Steel Products & Equipment Co., Inc.,78 TC 1029, Dec. 39,113 (1982).) 72. Research Problem.John Smythe has a margin account with Investit Investment Company. The stocks and bonds in the account earned dividends and interest of $10,000 in 2013. The $10,000 was paid directly to the margin account and used for reinvestment purposes only. Smythe received a substitute Form 1099-DIV which indicated the composition of the $10,000. However, Smythe did not report the $10,000 as income in 2013. He reported it as income in 2014 when he closed the margin account. The IRS has indicated that Smythe must include the $10,000 in 2013, and in addition to taxes has assessed interest and penalties. Smythe seeks your advice. (See, for example, A.L. Christoffersen,84-2 USTC¶ 9990, 749 F.2d 513 (CA-8 1984).)

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