In 2015, Lebron Jones decided to start his own business and incurred $54,000 in start-up costs....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In 2015, Lebron Jones decided to start his own business and incurred $54,000 in start-up costs. On August 15th, 2015, Lebron starts up his business. What will be Lebron's total deductions related to start-up costs in 2015 and how much, if any, can be amortized over 15 years? Christian goes on vacation to Bermuda for two weeks. While walking on the beach, he finds an old wooden box half buried in the sand. After he retrieves it and makes sure no one is watching him, he opens the box and finds it full of pirate gold! Christian carries the box back to his hotel room on the beach and gets it inside with no one seeing him do so. (It is a small box). After looking up pirate gold on the internet, he discovers the loot is worth $12,999 (Christian is very meticulous, he is an accountant after all). He decides to end his vacation early to avoid being robbed before he can get the gold home. He packs it in his suitcase which he checks at the airport and pays the extra fee because the bag is so heavy. Once he gets home, he takes the gold directly to the pawn shop where his best friend from high school, Kevin, works. Kevin recognizes a good deal when he sees one and offers to pay Christian $9,999 in cash for the gold. Christian takes the deal and leaves the pawn shop to go to the bank and deposit $9.900 in a new savings account he opens that day. How much, if any, should Christian report on his income tax return? (Do not assume any more facts than already given). In 2015, Lebron Jones decided to start his own business and incurred $54,000 in start-up costs. On August 15th, 2015, Lebron starts up his business. What will be Lebron's total deductions related to start-up costs in 2015 and how much, if any, can be amortized over 15 years? Christian goes on vacation to Bermuda for two weeks. While walking on the beach, he finds an old wooden box half buried in the sand. After he retrieves it and makes sure no one is watching him, he opens the box and finds it full of pirate gold! Christian carries the box back to his hotel room on the beach and gets it inside with no one seeing him do so. (It is a small box). After looking up pirate gold on the internet, he discovers the loot is worth $12,999 (Christian is very meticulous, he is an accountant after all). He decides to end his vacation early to avoid being robbed before he can get the gold home. He packs it in his suitcase which he checks at the airport and pays the extra fee because the bag is so heavy. Once he gets home, he takes the gold directly to the pawn shop where his best friend from high school, Kevin, works. Kevin recognizes a good deal when he sees one and offers to pay Christian $9,999 in cash for the gold. Christian takes the deal and leaves the pawn shop to go to the bank and deposit $9.900 in a new savings account he opens that day. How much, if any, should Christian report on his income tax return? (Do not assume any more facts than already given).
Expert Answer:
Answer rating: 100% (QA)
Lebrons Total Deductions Related to Startup Costs in 2015 Under the US tax rules startup costs incur... View the full answer
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
Alice J. and Bruce M. Jones are married taxpayers who file a joint return. Alices birthday is September 21, 1961, and Bruces is June 27, 1960. Bruce is the office manager for Ames Dental Clinic....
-
You are required to prepare personal income tax returns using a tax software as part of the evaluation components for this course. The case study covers all the rules learned in this course. The...
-
Individual Income Taxatio Due December 05, 2019 Alice J. and Bruce M. Jones are married taxpayers who file a joint return. Alice’s birthday is September 21, 1961, and Bruce’s is June 27,...
-
Suppose Targets stock has an expected return of 20% and a volatility of 40%, Hersheys stock has an expected return of 12% and a volatility of 30%, and these two stocks are uncorrelated. a. What is...
-
The three networks in Figure are all equivalent implementations of the same two-input, two-output linear time-invariant system. (a) Write the difference equations for network A.? (b) Find values of...
-
A long solenoid with 1000 windings per meter is placed with its central axis parallel to the \(y\) axis and \(20 \mathrm{~mm}\) above a sheet of metal that is \(0.5 \mathrm{~m}\) wide in the \(y\)...
-
Beth Plum is a realtor. She organized her business as a corporation, Beth Plum, Realtor, P.C., by investing \($23,000\) cash. The business issued common stock to her. Consider the following facts at...
-
In a recent annual report, Nike reported the following information (in millions): beginning total assets $6,821; ending total assets $7,891; beginning property, plant, and equipment $2,988 (at cost);...
-
Download the labour force statistic for Australia from the ABS website here. Use the data to answer the following questions only. You do not have to analyze the data. Show proof when you make...
-
The Classic Furniture Company is trying to determine the optimal quantities to make of six possible products: tables and chairs made of oak, cherry, and pine. The products are to be made using the...
-
The controlled full-wave bridge rectifier of Fig. 3 has a source of 120 V rms at 60 Hz and an R-L load, where R=12 ohm and L=110 m11. The delay angle is equal to 50 degrees. a. Determine the dc...
-
During its first year of operations, Eastern Data Links Corporation entered into the following transactions relating to shareholders equity. The articles of incorporation authorized the issue of 8...
-
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:...
-
Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 210 units at $50 per unit. During the year, Cortez made two batch purchases of this chair. The...
-
I believe that Smith's objection should not prevail. Smith believed that since he is a resident of a different state, Florida court's exercise of personal jurisdiction should not apply to him....
-
A 19 kg child is riding a 5.1 kg bike with a velocity of 5.1 m/s to the northwest. a) What is the total momentum of the child and the bike together? Answer in units of kg. m/s. part 2 of 3 b) What is...
-
What was the holding in the case Graham v. Florida (2010)? 2- Define Habeas Corpus? 3- What was the holding in the case Glossip v. Gross (2015)? 4- What was the holding on the case Estelle v. Gamble...
-
The Home Depot is the leading retailer in the home improvement industry and one of the 10largest retailers in the United States. The company included the following on its January 29, 2012, balance...
-
On December 31, 2013, PanTech Company invests $20,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary...
-
On January 1, 2012, Mona, Inc., acquired 80 percent of Lisa Company's common stock as well as 60 percent of its preferred shares. Mona paid $65,000 in cash for the preferred stock, with a call value...
-
On October 1, 2013, Hanks Company entered into a forward contract to sell 100,000 LCUs in four months (on January 31, 2014) and receive $65,000 in U.S. dollars. Exchange rates for the LCU follow:...
-
A public company's audit committee should consist of: a. Representatives of management, shareholders, suppliers, and customers. b. The audit partner, chief financial officer, legal counsel, and at...
-
An independent auditor has been approached to perform an audit. Research suggests that the auditor may fail to: a. Distinguish between a regulated and nonregulated industry. b. Coordinate audit dates...
-
To avoid misunderstandings between a practitioner and client, engagement arrangements are written in: a. A legal letter. b. An engagement letter. c. A client representation letter. d. A letter on...
Study smarter with the SolutionInn App