accounting questions set #3 answer all with work to please! CHAPTER 7 Q9 (Bad De
ID: 2447277 • Letter: A
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accounting questions set #3 answer all with work to please! CHAPTER 7 Q9 (Bad Debts) During 2013, Steve Jobs sold software products to Bill Gates on account for $20,000. In 2014, when the balance on the account was $11,000, Bill filed for bankruptcy and Steve was notified that he could not receive any of the amounts owed to him. In 2015, final settlement was made and Steve received $5,000. 1) How much bad debt loss will Steve deduct in 2014? 2) How much will Stew, include in his gross income during 2015? a) if his taxable income without bad debt deduction in 2014 was $200,000 b) If his taxable income without had debt deduction in 2014 was $2,000 Q11 (Losses of Individuals) During the year, Mark Zuckerberg had the following business theft losses and Reid Hoffman (AGI = $50,000) had the following personal casualty losses: adjusted basis: Mark = $900, Reid = $2,500 fair market value of asset before event: Mark = $600, Reid - $4,000 fair market value of asset after event: Mark - $0, Reid - $1,000 insurance proceeds: Mark $400, Reid = $500 What are the deductible losses for Mark and Reid, respectively? Q16 (MACRS - Special Rules for Personalty) Daniel owns a tax consulting serves company (WaxONWaxOffTax'') as a sole proprietorship In 2015, Daniel's business taxable income is $300,000 before considering any $179 deduction, and Daniel purchases and places a business truck (a 5-year class property) in service for $1,800,000 on May 23rd, 2015. If Daniel chooses 1) $179 deduction option 2) 50% additional first-year depreciation deduction option, and 3) declining balance (DB) cost recovery method, what is Daniel's cost recovery deduction for 2015?Explanation / Answer
It eliminates both age of equipment and method of depreciation as factors in ROI computations.
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