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please help asap ! I'm unsure of the blanks the corporation's transactipess duning the current year Bead inerequmementh. The amouns pad in the current yeat
please help asap ! I'm unsure of the blanks
the corporation's transactipess duning the current year Bead inerequmementh. The amouns pad in the current yeat deorcbole beculse ther. tollowneyeat beoucube n the aimint year because they Dets your ahswer gieod the requitements folowing year are not deductiene in the curreen year because they Deductibie in current year Deductiole in eurrent year for fotal dedvebon in eurrent for amounts paid amounts not yot pasd your Ran: Seminar teachot conpensatisn priater Totas Does your answer Traenstuen 1. Transactesn 3 Transesson 2 Transactions 1. Showman Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on Novernber 30 . On December 15 . Showman received a $43,000 bill from the contractor. Showman immediately contacted the contractor to contest $7,000 of the total charges, arguing that it exceeded the price that was agreed upon. Showman made no payment on the bill during its current tax year. 2. Showman offers a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $10,000 to service warranties during the current tax year, and it expects to pay $13,000 to fulfil the remaining warranty obligations next year. 3. Every year, Showman offers a series of nine trade seminars from November 1 through July 31 . It receives all registration fees from participants by October 1 , before the seminars begin. As of December 31. two of the nine seminars are completed, and the next seminar is scheduled for January 14-15. The expenses incurred in performing the seminars are routine each year. On the first of each month from November through July, Showman pays the $450 monthly rent for the seminar location On September 16 , showinan signs a contract with the seminar teacher, a computers expert and excellent public speaker the contract requires showman to pay the teacher $1,500 after each seminat, a total of $13,500. On October 3 , Showman signs a contract with a local printing company, which will provide text materiais for the seminars Shownan pays the printer $100 atter each seminar's materials are delivered the day before the seminar Showman reports in year 1 only the revenue related to the first two seminars as eamed by December 31 (sec 451 (c) and Rev. Proc 2004-34), with the balance earned in year 2, when the remaining 4 seminars are completed Step by Step Solution
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