Tax Quiz

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With respect to the prepaid income from services which of the following is true? The treatment of prepaid income is the same for tax and financial accounting. An accrual basis taxpayer can spread the income over the period services are to be provided if all of the servidcdes will be completed by the end of the tax year ^^^answer

The effects of a below-market loan for 450,000 made by a a corporation to its chief The corporation has imputed interest income and compensation expense.

As a general rule
Income from property is taxed to the person who owns the property Income from services is taxed to the person who earns the income The assignee of income from property must pay tax on the income The person who receives the benefit of the income must pay the tax on the income 1 and 2 are right.On June 30, 1009 Pongo a cash basis taxpayer, gave goofy a bond with a 25,000 face amount that pays 2,5000 interest each December 31. When Goofy collected the interest on dec. 31, 2009 Pongo must report 1250 interest income and goofy must report 1250 interest income.

During the year Genie wen tfrom Cleveland to Fairbanks on business. Preceding a fiveday business meeting he spent four days vacationing at a dude ranch. Excluding the dude ranch costs her expenses for the trip are Air fare 1800

Lodging 600
Meals 500
Entertainment 300
You take meals and entertainment divide them by 2
Add that number to air far and lodging and you get 2800.
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