What amounts from the balance sheet below are deductible for 2019 to get Corporate taxable income from
Question:
What amounts from the balance sheet below are deductible for 2019 to get Corporate taxable income from these accrued items?
Balance sheet | 12/31/19 | 12/31/18 | |
Accrued Vacation | 13,800 | 10,700 | |
Vacation Paid by March/15 of following year | 5,800 | 3,700 | |
Allowance for Uncollectible Accts | 4,100 | 6,100 | |
Prepaid Insurance | 10,400 | 12,700 | |
Accrued Litigation Costs | 34,000 | 0 | |
Accrued Bonuses (Chief Executive) | 38,000 | 39,000 |
what amount is deductible for tax purposes C Corp?
1. Corporation uses the 12-month rule, it pays one annual insurance policy on Dec/31 each year.
2. Bonuses paid the following year before the 2 1/2 month on March 13.
3. (earned but unused vacation)Paid by March 15 following year.
4. Bad debt by allowance method (% sales) Based on Sales, $7,400 was accrued in company books.
5. Estimate loss in a case was 34,000.
Expert Answer:
4 Bad debt by allowance method sales Based on Sales 7400 was accrued in company books A bad debt exp... View the full answer
