Question: On December 29, 2016, an employee received a $5,000 check from her employer's client. The check was payable to the employer. The employee did not

On December 29, 2016, an employee received a $5,000 check from her employer's client. The check was payable to the employer. The employee did not remit the funds to the employer until December 30, 2016. The employer deposited the check on December 31, 2016, but the bank did not credit the employer's bank account until January 2, 2017. When is the cash basis employer required to include the $5,000 in gross income?

Step by Step Solution

★★★★★

3.38 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The check is a cash equiva... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1310-B-C-F-F-P-M(2658).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

TAX 5015 (spring 2020) - Chapter review exercise #9 Topic review: Accounting for income taxes and uncertain tax positions Due date: April 15/16 David Ross Company reported pretax accounting income of...

Use Worksheet 14.1 to assist Tara Easley with her retirement planning needs. She plans to retire in 15 years, and her current household expenditures run about $50,000 per year. Tara estimates that...

Assume that the taxpayers, George A. Warden (social security number 333-33-3330) and Mary S. Warden (social security number 444-44-4440) file a joint return. Both are 50-years old, have good...

David and Richard Riley started up a company that sold DVDs and videos at a discount. They bought videos that were out of date in bulk, allowing them to sell them at low prices. They started out by...

On December 29, 2015, an employee received a $5,000 check from her employers client. The check was payable to the employer. The employee did not remit the funds to the employer until December 30,...

6. On December 29, 2017, an employee received a $5,000 check from her employer's client. the check was payable to the employer. The employee did not remit the funds to the employer until December 30,...

For 2020, Heidi, who is single has properly determined that her taxable income is $81,800, including $1,200 of unrecaptured 1250 gain and $5,000 of 0%/15%/20% gain. Compute Heidi's tax liability...

. Lo.1Allen visits Reno, Nevada, once a year to gamble. This year his gamBling Cliu loss was $25,000. He commented to you, "At least I didn't have to pay for my airfare and hotel room. The casino...

Discussion Question 4-6 (LO. 2, 3) On December 29, 2020, an employee received a $5,000 check from her employer's client. The check was payable to the employer. The employee did not remit the funds to...

Discussion Question 4-6 (LO. 2, 3) On December 29, 2019, an employee received a $5,000 check from her employer's client. The check was payable to the employer. The employee did not remit the funds to...

On December 29, 2018, an employee received a $5,000 check from her employers client. The check was payable to the employer. The employee did not remit the funds to the employer until December 30,...

Prove that (ai + a2 +....... + an)2 n(a21 + a22 + .......+ a2n) for any real numbers a\..........a". When does equality hold?

Suppose one of your clients is four years away from retirement and has only $1,500 in pretax income to devote to either a Roth or a traditional IRA. The traditional IRA permits investors to...

Evaluate the integral s i n 8 ( x 5 ) c o s ( x 5 d x ) s i n 8 ( x 5 ) c o s ( x 5 d x ) = 5 9 s i n 9 ( x 5 ) C

Repeat Problem 9 using MATLAB. Data From Problem 9: Find the state-space representation in phase-variable form for each of the systems shown in Figure P3.8. R(s) 100 C(s) s4+ 20s3+ 10s2+ 7s + 100 (a)...

A local citizen gives the City of Salem a painting by Picasso to display in city hall. Under what condition will the city not report this painting as a capital asset on its government-wide financial...

Use a CAS as an aid in solving the auxiliary equation. Form the general solution of the differential equation. Then use a CAS as an aid in solving the system of equations for the coefficients c i , i...

Professor Rosencrantz flips a fair coin once. Professor Guildenstern flips a fair coin twice. What is the probability that Professor Rosencrantz obtains more heads Professor Rosencrantz flips a fair...

Professor Rosencrantz flips a fair coin n times, and so does Professor Guildenstern. Show that the probability that they get the same number of heads is ( 2n n )/4 n . ?For Professor Rosencrantz,...

Some developing countries have suffered banking crises in which depositors lost part or all of their deposits (in some countries there is no deposit insurance). This type of crisis decreases...

On April 3, 2013, Luis filed his 2012 income tax return, which showed a tax due of $75,000. On June 1, 2015, he filed an amended return for 2012 that showed an additional tax of $10,000. Luis paid...

Review Exhibit 17.1, and identify the following. a. The title of the IRS's chief executive officer. b. The title of the "IRS's attorney." c. The names of the four major operating divisions of the...

Todd Winningham IV has $6,500 to invest. He has been looking at Gallagher Tennis Clubs Inc. common stock. Gallagher has issued a rights offering to its common stockholders. Five rights plus $78 cash...

the following graph plots the current SML and indicates the return that investors

Part III. Analysis of Variance Please enter and analyze the data in the table below using SPSS. The data contain estimated hours of Internet usage for samples from three socioeconomic status (SES)...