Joe operates a business that locates and purchases specialized assets for clients, among other activities, of accounting but he doesn't keep any significant Inventories of the specialized assets that he sells. Joe re financial Information for his business activities during year o. Determine the effect of each of the following transactions on the taxable business Income. (Select "No Effe no change in the taxable business Income.) Required: a. Joe has signed a contract to sell gadgets to the city. The contract provides that sales of gadgets are dep of gadgets operating successfully. In December, Joe delivers $12,000 worth of gadgets to the city that w purchased the gadgets especially for this contract and paid $8,500. b. Joe pald $180 for entertaining a visiting out-of-town client. The client didn't discuss business with Joe duri wants to maintain good relations to encourage additional business next year c. On November 1. Joe pald $600 for premlums providing for $40,000 of "key man" insurance on the life of next 12 months. d. At the end of year 0. Joe's business reports $9.000 of accounts receivable. Based upon past experlence. Je $2,000 of his new receivables will be uncollectible. e. In December of year 0. Joe rented equipment to complete a large job. Joe paid $3,000 in December becaus required a minimum rental of three months ($1.000 per month). Joe completed the job before year-end, but equipment at the end of the lease. f. Joe hired a new sales representative as an employee and sent her to Dallas for a week to contact prospective Joe ended up relmbursing his employee $300 for airfare. $650 for lodging, $250 for meals, and $150 for ente provided adequate documentation to substantiate the business purpose for the meals and entertainment). Jos employee to account for all expenditures in order to be relmbursed. g. Joe uses his BMW (a personal auto) to travel to and from his residence to his factory. However, he switches to a he needs to travel after he reaches the factory. Last month the business vehicle broke down and he was forced both to travel to and from the factory and to visit work sites. He drove 120 miles visiting work sites and 46 miles the factory from his home. Joe uses the standard mileage rate to determine his auto-related business expenses. answer to nearest whole number. Use standard mileage rate.) h. Joe pald a visit to his parents in Dallas over the Christmas holidays. While he was in the city. Joe spent $50 to att business symposium. Joe paid $200 for airfare. $50 for meals during the symposium and $20 on cab fare to the 6 O $ 0 . 5 d 0 No effect No effect No effect Amount of income Amount of deduction Amount of deduction Amount of deduction Amount of deduction 5 e 9,000 1.000 S h Joe operates a business that locates and purchases specialized assets for clients, among other activities, of accounting but he doesn't keep any significant Inventories of the specialized assets that he sells. Joe re financial Information for his business activities during year o. Determine the effect of each of the following transactions on the taxable business Income. (Select "No Effe no change in the taxable business Income.) Required: a. Joe has signed a contract to sell gadgets to the city. The contract provides that sales of gadgets are dep of gadgets operating successfully. In December, Joe delivers $12,000 worth of gadgets to the city that w purchased the gadgets especially for this contract and paid $8,500. b. Joe pald $180 for entertaining a visiting out-of-town client. The client didn't discuss business with Joe duri wants to maintain good relations to encourage additional business next year c. On November 1. Joe pald $600 for premlums providing for $40,000 of "key man" insurance on the life of next 12 months. d. At the end of year 0. Joe's business reports $9.000 of accounts receivable. Based upon past experlence. Je $2,000 of his new receivables will be uncollectible. e. In December of year 0. Joe rented equipment to complete a large job. Joe paid $3,000 in December becaus required a minimum rental of three months ($1.000 per month). Joe completed the job before year-end, but equipment at the end of the lease. f. Joe hired a new sales representative as an employee and sent her to Dallas for a week to contact prospective Joe ended up relmbursing his employee $300 for airfare. $650 for lodging, $250 for meals, and $150 for ente provided adequate documentation to substantiate the business purpose for the meals and entertainment). Jos employee to account for all expenditures in order to be relmbursed. g. Joe uses his BMW (a personal auto) to travel to and from his residence to his factory. However, he switches to a he needs to travel after he reaches the factory. Last month the business vehicle broke down and he was forced both to travel to and from the factory and to visit work sites. He drove 120 miles visiting work sites and 46 miles the factory from his home. Joe uses the standard mileage rate to determine his auto-related business expenses. answer to nearest whole number. Use standard mileage rate.) h. Joe pald a visit to his parents in Dallas over the Christmas holidays. While he was in the city. Joe spent $50 to att business symposium. Joe paid $200 for airfare. $50 for meals during the symposium and $20 on cab fare to the 6 O $ 0 . 5 d 0 No effect No effect No effect Amount of income Amount of deduction Amount of deduction Amount of deduction Amount of deduction 5 e 9,000 1.000 S h