Question
9.In January of year 0, Justin paid $9,000 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year
9.In January of year 0, Justin paid $9,000 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. Assume the insurance policy is for a 24-month period from April 1, year 0 through March 31, year 2. What amount of the insurance premium may Justin deduct in year 0?
10.In October of year 0, Janine received a $5,000 payment from a client for 25 months of security services she will provide starting on November 1 of year 0. This amounts to $200 per month. What amount of revenue must Janine recognize in year 0 from the $5,000 advance payment for services if she uses the cash method of accounting?
11.In October of year 0, Janine received a $5,000 payment from a client for 25 months of security services she will provide starting on November 1 of year 0. This amounts to $200 per month. What amount of revenue must Janine recognize in year 1 from the $5,000 advance payment for services if she uses the accrual method of accounting?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started