LO 7.1 4. Amy is a calendar-year taxpayer reporting on the cash basis. Please indicate how she
Question:
LO 7.1 4. Amy is a calendar-year taxpayer reporting on the cash basis. Please indicate how she should treat the following expenses for 2010:
a. She makes a deductible contribution to an IRA on April 15, 2011.
_______________________________________________________________________
b. She has made an election to accrue the increase in value of savings bonds even though the increase is not received in cash.
c. She prepays half a year of interest in advance on her mortgage on the last day of 2010. _________________________________________________________________
d. She pays all of her outstanding invoices for standard business expenses in the last week of December.______________________________________________________
e. She sends out a big bill to a customer on January 1, 2011, even though she did all of the work in December of 2010. _________________________________________
Step by Step Answer:
Income Tax Fundamentals 2011
ISBN: 9780538469197
29th Edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller