Requirement b. How would your answer change if Solutions Corporation were a cash-method taxpayer? Complete the table below to identify which of your answers from Part a will change, and the amount Solutions can ded What rules apply? Amount deductible in current year vith the balance earned in year 2 , when the remaining 4 seminars are completed. The amounts paid in the current year deductible because they The amounts paid in the following year deductible in the current year because they Vhat rules apply? mount deductible in current year ith the balance earned in year 2 , when the remaining 4 seminars are completed. The amounts paid in the following year deductible in the current year because they iomplete the table below to show the amounts that Solutions can deduct in the current year. (Enter a "0" if an amount is not deductible.) equirement b. How would your answer change if Solutions Corporation were a cash-method taxpayer? Does your answer from Part a Amount deductible in Requirement a. How should Solutions Corporation treat these transactions? What rules apply? (Enter a "0" if none of the expense can be deducted.) $1,000 of the total charges, arguing that it exceeded the price that was agreed upon. Solutions made no payment on the bill during its current tax year. What rules apply? Amount deductible in Transaction 2. Solutior $11,500 to service warranties during the current tax year, and it expects to pay $12,000 to fulfill the remaining warranty obligations next year. What rules apply? Amount deductible in Transaction 3. Every y seminar is scheduled fo contract with the semini materials for the semina with the balance earnec The amounts paid in the current year deductible because they The amounts paid in the following year deductible in the current year because they Complete the table below to show the amounts that Solutions can deduct in the current year. (Enter a "0" if an amount is not deductible.) Dedurtihle in current vagr Deductihle in current year for Thtal deduction in current 1. Solutions Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30 . On December 15, Solutions received a $5,000 bill from the contractor. Solutions immediately contacted the contractor to contest $1,000 of the total charges, arguing that it exceeded the price that was agreed upon. Solutions made no payment on the bill during its current tax year. 2. Solutions offers a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $11,500 to service warranties during the current tax year, and it expects to pay $12,000 to fulfill the remaining warranty obligations next year. 3. Every year, Solutions 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, Solutions pays the $625 monthly rent for the seminar location. On September 16, Solutions signs a contract with the seminar teacher, a computers expert and excellent public speaker. The contract requires Solutions to pay the teacher $900 after each seminar, a total of $5,400. On October 3, Solutions signs a contract with a local printing company, which will provide text materials for the seminars. Solutions pays the printer $350 after each seminar's materials are delivered the day before the seminar. Solutions 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 completed. Requirement a. How should Solutions Corporation treat these transactions? What rules apply? (Enter a "0" if none of the expense can be deducted.) $1,000 of the total charges, arguing that it exceeded the price that was agreed upon. Solutions 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 with the balance earned in year 2 , when the remaining 4 seminars are completed. Requirement b. How would your answer change if Solutions Corporation were a cash-method taxpayer? Complete the table below to identify which of your answers from Part a will change, and the amount Solutions can ded What rules apply? Amount deductible in current year vith the balance earned in year 2 , when the remaining 4 seminars are completed. The amounts paid in the current year deductible because they The amounts paid in the following year deductible in the current year because they Vhat rules apply? mount deductible in current year ith the balance earned in year 2 , when the remaining 4 seminars are completed. The amounts paid in the following year deductible in the current year because they iomplete the table below to show the amounts that Solutions can deduct in the current year. (Enter a "0" if an amount is not deductible.) equirement b. How would your answer change if Solutions Corporation were a cash-method taxpayer? Does your answer from Part a Amount deductible in Requirement a. How should Solutions Corporation treat these transactions? What rules apply? (Enter a "0" if none of the expense can be deducted.) $1,000 of the total charges, arguing that it exceeded the price that was agreed upon. Solutions made no payment on the bill during its current tax year. What rules apply? Amount deductible in Transaction 2. Solutior $11,500 to service warranties during the current tax year, and it expects to pay $12,000 to fulfill the remaining warranty obligations next year. What rules apply? Amount deductible in Transaction 3. Every y seminar is scheduled fo contract with the semini materials for the semina with the balance earnec The amounts paid in the current year deductible because they The amounts paid in the following year deductible in the current year because they Complete the table below to show the amounts that Solutions can deduct in the current year. (Enter a "0" if an amount is not deductible.) Dedurtihle in current vagr Deductihle in current year for Thtal deduction in current 1. Solutions Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30 . On December 15, Solutions received a $5,000 bill from the contractor. Solutions immediately contacted the contractor to contest $1,000 of the total charges, arguing that it exceeded the price that was agreed upon. Solutions made no payment on the bill during its current tax year. 2. Solutions offers a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $11,500 to service warranties during the current tax year, and it expects to pay $12,000 to fulfill the remaining warranty obligations next year. 3. Every year, Solutions 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, Solutions pays the $625 monthly rent for the seminar location. On September 16, Solutions signs a contract with the seminar teacher, a computers expert and excellent public speaker. The contract requires Solutions to pay the teacher $900 after each seminar, a total of $5,400. On October 3, Solutions signs a contract with a local printing company, which will provide text materials for the seminars. Solutions pays the printer $350 after each seminar's materials are delivered the day before the seminar. Solutions 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 completed. Requirement a. How should Solutions Corporation treat these transactions? What rules apply? (Enter a "0" if none of the expense can be deducted.) $1,000 of the total charges, arguing that it exceeded the price that was agreed upon. Solutions 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 with the balance earned in year 2 , when the remaining 4 seminars are completed