Jackson owns 40% interest in Beyond Belief Dance Company, un S-corporation with ordinary operating income of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jackson owns 40% interest in Beyond Belief Dance Company, un S-corporation with ordinary operating income of $91,000 in the current year. On weekends, Jackson sometimes performs as a drag queen, selling merchandise for cash at venues and often collects stacks of tips, mostly dollar bills. In January of the current year, Jackson entered his first drag competition at a local bar and ended up winning first prize, $2,400, and a collection of wigs worth $1,400. That night Jackson also sold merchandise for $589 that had cost him $180, and collected tips totaling $183, mostly in the form of bunched-up dollar bills. What amount of income must Jackson recognize due to these items in the current year? Jackson owns 40% interest in Beyond Belief Dance Company, un S-corporation with ordinary operating income of $91,000 in the current year. On weekends, Jackson sometimes performs as a drag queen, selling merchandise for cash at venues and often collects stacks of tips, mostly dollar bills. In January of the current year, Jackson entered his first drag competition at a local bar and ended up winning first prize, $2,400, and a collection of wigs worth $1,400. That night Jackson also sold merchandise for $589 that had cost him $180, and collected tips totaling $183, mostly in the form of bunched-up dollar bills. What amount of income must Jackson recognize due to these items in the current year?
Expert Answer:
Answer rating: 100% (QA)
Given Share in dance companys income 91000 x 40 36400 Prize money ... View the full answer
Related Book For
Global Taxation How Modern Taxes Conquered The World
ISBN: 9780192897572
1st Edition
Authors: Philipp Genschel, Laura Seelkopf
Posted Date:
Students also viewed these accounting questions
-
Meridian Inc. has incurred $150,000 during the current year on the initial design work of a new product. It is anticipated that this design will be taken forward over the next two year period to be...
-
Jackson Corporation prepared the following book income statement for its year ended December 31, 2015: Information on equipment depreciation and sale: ¢ Acquired March 3, 2013 for $180,000...
-
On January 1, 2013, Marlin Corporation sold merchandise to Diamonte Inc. and received a non-interest-bearing note that requires Diamonte to pay $375,000 on December 31, 2014 (the note's maturity...
-
14. The molecule that has formula C,H, with 2 sp C's, 2 sp C's, and 1 sp C and chiral isomer is H CH3 CH3 (a) (c) H H HC H C=C=C CH 3 C=C=C H CH3 (b) (d) HC=C H HCCC=C CH3 H CHCH3
-
Balance sheet accounts for Joyner Company contained the following amounts at the end of Years 1and 2: The companys income statement for Year 2 follows: Equipment that had cost $40,000 and on which...
-
Using Kirchhoff 's loop rule, find the value of the current I in part c of the drawing, where R = 5.0 . (Parts a and b of the drawing are used in the online tutorial help that is provided for this...
-
In Caroline Company, total material costs are \($48,000\), and total conversion costs are \($60,000\). Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the...
-
1. Although biometrics at BayCare Health Systems helps reduce risk by properly identifying patients at registration, what aspect of their system opens them up to a different area of risk? 2. Why...
-
5. A carpenter joins four boards of lengths 6 ft, 6 ft, 4 ft, an 4 ft, in that order, to form quadrilateral ABCD as shown. a) What type of quadrilateral is formed? b) How are angles B and D related?...
-
Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office...
-
Profitability and the Income Statement Presented below are income statement data for Poole & Company for 2019: Income tax expense . . . . . . . . . . . . . . . . $16,000 Sales revenue. . . . . . . ....
-
How could organizations use augmented reality to improve real-life products and services?
-
Which of the example tools and vendors are open source products or product providers?
-
Would adding real-world objects into a virtual reality setting ft the definition of mixed reality?
-
What is the difference between business intelligence and business analytics?
-
What are the top five risks associated with using VR, AR, and MR in accounting practice?
-
I need to help How to write the memo this is a Assignment In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution...
-
The pendulum consists of two rods: AB is pin supported at A and swings only in the y-z plane, whereas a bearing at B allows the attached rod BD to spin about rod AB. At a given instant, the rods have...
-
Corporation owns all the stock of S1 and S2 Corporations. The corporations have filed consolidated tax returns since their creation in Year 1. At the close of business on July 10 of Year 3, P sells...
-
Refer to the facts in Problem C:3-53. Elizabeth has read an article explaining the advantages of paying nontaxable fringe benefits (premiums on group term life insurance, accident and health...
-
A simple trust had a long-term capital loss of $10,000 for 2017 and a long-term capital gain of $15,000 for 2018. Its net accounting income and DNI are equal. Explain the tax treatment for the 2017...
-
Assume that the Federal Reserve wants to reduce the value of the euro with respect to the dollar. How could it attempt to use indirect intervention to achieve its goal? What is a possible adverse...
-
Assume that interest rate parity exists. The 1-year nominal interest rate in the United States is 7 percent, while the 1-year nominal interest rate in Australia is 11 percent. The spot rate of the...
-
Tennessee Co. purchases imports that have a price of 400,000 Singapore dollars, and it has to pay for the imports in 90 days. It will use a 90-day forward contract to cover its payables. Assume that...
Study smarter with the SolutionInn App