Floyd Mayweather, a world champion boxer, had the following activity in an account he set up this
Question:
Floyd Mayweather, a world champion boxer, had the following activity in an account he set up this year.
Date | Transaction | Cumulative Total | |
1/1 | Deposit of borrowed funds | $ 50,000 | $ 50,000 |
8/12 | Deposit of earned funds | $ 100,000 | $ 150,000 |
8/15 | Personal Expenditure | $ 60,000 | $ 90,000 |
9/1 | Deposit of borrowed funds | $ 40,000 | $ 130,000 |
9/5 | Personal Expenditure | $ 60,000 | $ 70,000 |
9/14 | Trade or Business Expend. | $ 30,000 | $ 40,000 |
10/4 | Trade or Business Expend. | $ 6,000 | $ 34,000 |
Part A: You are Floyd's tax advisor. What funds are the expenditures on 8/15, 9/5, 9/14, and 10/4 to be attributed to earned funds or borrowed funds? Be sure to use the drop down menu to provide amounts that are attributed to both earned and borrowed funds for each expenditure. No other explanations are necessary. [6 points]
Date | Type | Expenditure Attributed To | Amount |
---|---|---|---|
8/15 | Personal expenditure | Borrowed Funds | $0$6,000$10,000$20,000$30,000$40,000$50,000$60,000 |
| Earned Funds | $0$6,000$10,000$20,000$30,000$40,000$50,000$60,000 | |
9/5 | Personal expenditure | Borrowed Funds | $0$6,000$10,000$20,000$30,000$40,000$50,000$60,000 |
| Earned Funds | $0$6,000$10,000$20,000$30,000$40,000$50,000$60,000 | |
9/14 | Business expenditure | Borrowed Funds | $0$6,000$10,000$20,000$30,000$40,000$50,000$60,000 |
| Earned Funds | $0$6,000$10,000$20,000$30,000$40,000$50,000$60,000 | |
10/4 | Business expenditure | Borrowed Funds | $0$6,000$10,000$20,000$30,000$40,000$50,000$60,000 |
| Earned Funds | $0$6,000$10,000$20,000$30,000$40,000$50,000$60,000 |
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill