Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required: Williamson, LLC, paid insurance premiums of $6,720 on December 1, 20X1. These premiums covered a two-year period beginning on that date. What amount, from

Required:

  1. Williamson, LLC, paid insurance premiums of $6,720 on December 1, 20X1. These premiums covered a two-year period beginning on that date. What amount, from this payment, should the corporation show as insurance expense for the year 20X1?
  2. Taylor Moore buys and sells real estate. On December 31, 20X1, her inventory of property included a tract of undeveloped land for which she had paid $945,000. The fair market value of the land was $1,045,000 at that date. How much income should Moore report for 20X1 in connection with this land?
  3. Madison Building Company signed a contract with a customer on November 1, 20X1. The contract called for construction of a building to begin by December 31, 20X1, and to be completed by December 31, 20X2. The contract price was $9.9 million. Madison estimated that the building would cost $6.9 million. On November 15, 20X1, the customer was required to make an advance payment of $1,045,000. No work was done on the project until January 20X2. How much income from the project should Madison report in 20X1?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Thomas H. Beechy

5th Edition

0071091319, 978-0071091312

More Books

Students also viewed these Accounting questions

Question

8. What are the costs of collecting the information?

Answered: 1 week ago