- Pls answer all the questions like how they will fit in the boxes.
Showman Corporation, a computer vendor and consulting company, uses the accrual method of accounting. Its tax year is the calendar year. The following are three of the corporation's transactions during the current year: View the transactions. Read the requirements. Requirement a. How should Showman Corporation treat these transactions? What rules apply? (Enter a "0" if none of the expense can be deducted.) price that was agreed upon. Showman made no payment on the bill during its current tax year. What rules apply? Amount deductible in current year What rules apply? Amount deductible in current year related to the first two seminars as earned 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. The amounts paid in the current year deductible because they Complete the table below to show the amounts that Showman can deduct in the current year. (Enter a "0" if an amount is not deductible.) Rent Printer Total Requirement b. How would your answer change if Showman Corporation were a cash-method taxpayer? \begin{tabular}{|c|c|c|} \hline \multirow[b]{2}{*}{ Transaction 1.} & \begin{tabular}{c} Does your answer \\ from Part a \\ change? \end{tabular} & \begin{tabular}{c} Amount deductible in \\ the current year \end{tabular} \\ \hline & & \\ \hline Transaction 2. & & \\ \hline Transaction 3. & & \\ \hline \end{tabular} Transactions 1. Showman Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30. On December 15, Showman received a $55,000 bill from the contractor. Showman immediately contacted the contractor to contest $5,000 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 $13,500 to service warranties during the current tax year, and it expects to pay $11,500 to fulfill the remaining warranty obligations next year. 3. Every year, Showman offers a series of six trade seminars from November 1 through April 30. It receives all registration fees from participants by October 1 , before the seminars begin. As of December 31, two of the six 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 April, Showman pays the $450 monthly rent for the seminar location. On September 16 , Showman signs a contract with the seminar teacher, a computers expert and excellent public speaker. The contract requires Showman to pay the teacher $500 after each seminar, a total of $3,000. On October 3, Showman signs a contract with a local printing company, which will provide text materials for the seminars. Showman pays the printer $100 after 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 earned by December 31 (Sec. 451(c) and Rev. Proc. 2004-34), with the balance earned in year 2 , when the remaining 4 seminars are Showman Corporation, a computer vendor and consulting company, uses the accrual method of accounting. Its tax year is the calendar year. The following are three of the corporation's transactions during the current year: View the transactions. Read the requirements. Requirement a. How should Showman Corporation treat these transactions? What rules apply? (Enter a "0" if none of the expense can be deducted.) price that was agreed upon. Showman made no payment on the bill during its current tax year. What rules apply? Amount deductible in current year What rules apply? Amount deductible in current year related to the first two seminars as earned 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. The amounts paid in the current year deductible because they Complete the table below to show the amounts that Showman can deduct in the current year. (Enter a "0" if an amount is not deductible.) Rent Printer Total Requirement b. How would your answer change if Showman Corporation were a cash-method taxpayer? \begin{tabular}{|c|c|c|} \hline \multirow[b]{2}{*}{ Transaction 1.} & \begin{tabular}{c} Does your answer \\ from Part a \\ change? \end{tabular} & \begin{tabular}{c} Amount deductible in \\ the current year \end{tabular} \\ \hline & & \\ \hline Transaction 2. & & \\ \hline Transaction 3. & & \\ \hline \end{tabular} Transactions 1. Showman Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30. On December 15, Showman received a $55,000 bill from the contractor. Showman immediately contacted the contractor to contest $5,000 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 $13,500 to service warranties during the current tax year, and it expects to pay $11,500 to fulfill the remaining warranty obligations next year. 3. Every year, Showman offers a series of six trade seminars from November 1 through April 30. It receives all registration fees from participants by October 1 , before the seminars begin. As of December 31, two of the six 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 April, Showman pays the $450 monthly rent for the seminar location. On September 16 , Showman signs a contract with the seminar teacher, a computers expert and excellent public speaker. The contract requires Showman to pay the teacher $500 after each seminar, a total of $3,000. On October 3, Showman signs a contract with a local printing company, which will provide text materials for the seminars. Showman pays the printer $100 after 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 earned by December 31 (Sec. 451(c) and Rev. Proc. 2004-34), with the balance earned in year 2 , when the remaining 4 seminars are
