What of the additional income must be included in his income tax return 24

What of the additional income must be included in his

This preview shows page 1 - 3 out of 3 pages.

owner free of charge. What of the additional income must be included in his income tax return? 24. Helen Troy, a student seeking a Master’s degree in accounting, was awarded a 50 percent scholarship to graduate school (valued at $3,000) and a $6,000 per year teaching assistantship (not required of Master’s level students). She also, because of her great beauty, won first prize in the Miss International Beauty Pageant. The prize included $14,000 in cash, a $25,000 car, a $10,000 scholarship, and travel expenses of $2,000 relating to the pageant. What must she include as gross income? 25. Billy Dent, as the owner of an apartment building, receives and makes the following payments during 2019: Received in January 2019 rent that was due in December 2018 $5,000 Received in December 2019 rent not due until January 2020 $4,000 Security deposit which is to be refunded when tenant vacates the apartment $500 How much rental income must Billy Dent include on his 2019 income tax return?
Image of page 1
26. Abby, a cash basis taxpayer, is paid an annual salary of $250,000 plus a percentage of net profits. The additional compensation for 2019 was $50,000. This sum is payable to her on February 9, 2020 after the annual audit had been completed. However, a tentative credit of $10,000 was entered to her drawing account on December 1, 2019 and was immediately available to her. Abby comes to your office and asks you how much compensation must be included in her gross income for 2019.
Image of page 2
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture