On January 1, 2017, Kunto, a cash basis taxpayer, pays $46,228 for a 24-month certificate. The certificate
Question:
On January 1, 2017, Kunto, a cash basis taxpayer, pays $46,228 for a 24-month certificate. The certificate is priced to yield 4% (the effective interest rate) with interest compounded annually. No interest is paid until maturity, when Kunto receives $50,000. In your computations:
a. Compute Kunto’s gross income from the certificate for 2017.
b. Compute Kunto’s gross income from the certificate for 2018. Round any amounts to the nearest dollar.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
The difference between the amount due at maturity is actually interes...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Question Posted:
Students also viewed these Business questions
-
For each of the following situations, determine the proper year for recognition of the income or deduction if the taxpayer is (1) A cash basis taxpayer and (2) An accrual basis taxpayer: a. Tindle...
-
For each of the following situations determine the proper year for recognition of the income or deduction if the taxpayer is (1) a cash basis taxpayer and (2) an accrual basis taxpayer: a. Tindle...
-
Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Troy is a full-time employee of the corporation and receives a salary of $60,000 per year. He also receives...
-
What is the purpose of a Notice of Assessment?
-
Verify modus tollens (logical implication 4 in Table 2)?
-
Define equivalent evaporation and factor of evaporation.
-
Discuss the various sources and strategies for integrating cost and value.
-
The Polishing Department of Estaban Manufacturing Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process. Production:...
-
The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $3,560 for six months of advertising. Blue Nile Law Firm recorded $3,560 in the Prepaid...
-
= Consider the following discrete time two-period market model. The savings account is given by t 5 55 where and are 51 t for t= 0, 1, 2. The stock price is given by So = 1 and S = and S =...
-
Connor purchased an annuity that was to pay him a fixed amount each month for the remainder of his life. He began receiving payments in 2001, when he was 65 years old. In 2017, Connor was killed in...
-
Bigham Corporation, an accrual basis calendar year taxpayer, sells its services under 12-month and 24-month contracts. The corporation provides services to each customer every month. On July 1, 2017,...
-
Refer to Example 5.3.3. Consider the sampling distribution of for n = 1. Make a rough sketch of the sampling distribution. How many peaks does it have? Show the location (on the Y-axis) of each peak.
-
True Or False A professional who engages in conduct that results in a negative outcome for their client is by definition negligent.
-
How do courts treat statements by defendants that could be characterized as a. puffing? b. opinion by a disinterested party? c. opinion implying facts? d. prediction? e. statement of intentions?
-
To what standard of care is a specialist held? National or local?
-
Is it professional negligence by definition if the client experiences a negative outcome?
-
True Or False To recover for intentional misrepresentation, a plaintiff must prove that the defendant knew the misrepresentation was false or acted with reckless indifference to the truth.
-
Match the company to the generic strategy it practices: Cheapseats offers discount airfare to anyone with an Internet connection. Altoids breath mint is the only one that is curiously strong. Liz...
-
A bar of a steel alloy that exhibits the stress-strain behavior shown in Figure 6.22 is subjected to a tensile load; the specimen is 375 mm (14.8 in.) long and has a square cross section 5.5 mm (0.22...
-
Fran, who is in the 35% tax bracket, recently collected $100,000 on a life insurance policy she carried on her father. She currently owes $120,000 on her personal residence and $120,000 on business...
-
Distinguish between taxes that are proportional and those that are progressive.
-
Can a Tax Court Small Cases decision be treated as a precedent by other taxpayers? Explain. Partial list of research aids: 7463(b). Maria Antionette Walton Mitchell, T.C. Summary Opinion 2004-160.
-
Identify one type of business and describe that business and it's lending needs. Then describe what their potential lending needs may? Manufacturing Retail Wholesale Service Construction
-
Many investors believe the slope of yield curve is a leading economic indicator. Do you agree? Why? https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics?
-
Analyze the process for monitoring claims data for detecting potential fraud and abuse and describe how it is a crucial financial management process?
Study smarter with the SolutionInn App