Find weather it is true or false l. Lisa performed bookkeeping services for Donald charging him %650.
Question:
Find weather it is true or false
l. Lisa performed bookkeeping services for Donald charging him %650. Donald agreed that he would pay Lisa's credit card bill for the same amount. Lisa has received an economic benefit and must report $650 in income on her tax return.
2. Jeff owns 200 shares of Coca Cola common stock that have increased in value by S 14 each. He must report the increase in income because a transaction has occurred.
3. Constructive receipt means the income is available to or in the control of the taxpayer regardless of Whether the taxpayer to utilize income.
4. If Lucas, an accountant, agrees to provide tax services to a neighbor in exchange for the neighbor agreeing to fix his Lucas but not his neighbor will have to report income on this transaction at fair market value.
5. All federal and State unemployment compensation benefits are not subject to income tax.
6. The taxability of social security benefits depends on the “provisional income” and filing status of the taxpayer.
7. Jury duty pay is taxable income, but it can deducted from gross income if the amount must be given to the employer.
8. The initial original issue discount (OID)) on a bond is equal to the difference the acquisition price and the maturity value.
9. Receipt of property or services does not trigger income recognition for tax purposes.
10. Payments received by a taxpayer for unemployment compensation are not taxable.
11. A taxpayer must in income imputed interest on a loan made below market interest rate.Applied Statistics in Business and Economics
ISBN: 978-0073521480
4th edition
Authors: David Doane, Lori Seward