Computer Mary\'s income or deductions for 2012 using the (1) cash basis and (2)
ID: 2363144 • Letter: C
Question
Computer Mary's income or deductions for 2012 using the (1) cash basis and (2) the accrual basis for each of the following: (a.) In May 2012, Mary paid a licence fee of $1200 for the period June 1, 2012 through May 31, 2013. (b) In December 2012, Mary collected $10,000 for January 2013 rents. In January 2013, Mary Collected $2,000 for December 2012 rents. (c) In June 2012, Mary paid $7,200 for an office equipment service contract for the period July 1, 2012 through Dec. 31, 2013. (d) In June 2012, Mary purchased office furniture for $273,000. She paid $131,000 in cash and gave $142,000 interest bearing note for the balance. The office furniture has an MARCS cost recovery period of 7 yrs. Mary did not make the 179 election and elected not to take additional first-year depreciation.Explanation / Answer
Answer:-
Computer Mary's income or deductions for 2012 using the (1) cash basis and (2) the accrual basis for each of the following: (a.) In May 2012, Mary paid a licence fee of $1200 for the period June 1, 2012 through May 31, 2013. (b) In December 2012, Mary collected $10,000 for January 2013 rents. In January 2013, Mary Collected $2,000 for December 2012 rents. (c) In June 2012, Mary paid $7,200 for an office equipment service contract for the period July 1, 2012 through Dec. 31, 2013. (d) In June 2012, Mary purchased office furniture for $273,000. She paid $131,000 in cash and gave $142,000 interest bearing note for the balance. The office furniture has an MARCS cost recovery period of 7 yrs. Mary did not make the 179 election and elected not to take additional first-year depreciation.
PLEASE REFER TO:
www.tesc.edu/coursemanuals/dagang/ACC-421-JAN.pdf
www.hobokennj.org/docs/businessadmin/Audit2008.pdf
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.