Seler Coeporation, a computer vendor and consulting company, ises the accrual method of accounting. Its tax year is the calendar year. The following are three of the corporation's transactions duing the current year: Read the reguinements Requirement a. How should Sitter Corporation treat these transactions? What rules apply? iEnter a " 0 " if none of the expense can be deducled ! Transaction 1. Sitter Corporation hired a contractor to remodel its sales ficor. The contractor compieted the remodeling on November 30 . On December 15, Sitter received a $63,000 bil from the contractor, Sitter immediately contacted the contractor to contest $9,000 of the total charges, arguing that it exceeded the price that was agreed upen, Simer made no payment on the bil during iss current tax year. What rules apply? Amount deductible in current year Transaction 2. Sitter ofters a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $12,000 to secvice warranties daring the current tax year, and it expects to pary $11,500 to fulfil the remaining warranty obligations next year. What rules apply? Amount deductble in current year Transaction 3. Every year, Smer offers a secies of seven trade seminars from November 1 through May 31. it receives alt registration fees from participants by October 1, before the seminars begin. As of December 31, two of the seven seminars are completed, and the next seminar is scheduled for January 14-15. The expenses incurred in performing the seminars are toutine each yoar. On the first of oach month from November through May, Sitter pays the $600 monthly rent for the seminar location. On September 16. Sitter signs a contract with the seminar feacher, a compcters expen and excelent patilic speaker. The contract requires Smer to pay the leacher $500 after each seminar, a total of $3,500. On October 3 , Sitter signs a contract with a local printing company, which will peovide iext materials for the seminars. Sitser pays the printer $450 after each seminars materiais are delivered the day before the seminar. Sitter reports in year 1 only the revenue related to the first two seminars as earned by December 31 (Sec. 451(c) and Rer. Proc. 2004-34), with the bolance earned in year 2, when the remaining 4 seminars are complebed. The amounts paid in the currect year deducsible in the current year because tal both the economic performance : Complete the table below to show the not deducbible) deductible because they The amounts paid in the following year are r can deduct in the current year, (Enter a " if an amount is are not ] Stier Corporation, a computer vendor and consulting compacty, uses the acconal method of accounting. Its tax year is the calendar year, The following are three of the corporation's transactions during the current yoar: Read the requirements. Requirement a. How should Sitter Corporation treat these transactions? What nules apply? (Enter a " v " if none of the expense can be deducted ) Transaction 1. Sitter Corporation hired a contractor to remodel is sales floor, The contractor completed the remodeling on November 30 . On December 15, Sitter received a $63.000 bill from the contractor. Sitter immediately contacted the contractor to contest $9.000 of the totsi charges, arpuing that 2 exceeded the price that was agreed upon. Sitter made no payment on the bill during its current tax year. What rules apply? Amount deductible in eurrent year Transaetion 2. Sitter oflers a 2-year warranty on all of its compuler systems. For sales of computers in the current year, it paid $12,000 to service warranties during the current tax year, and it expects to paty $11,500 to fullit the remaining warranty obligations next yoar. What rules apply? Amount deductible in current yoar Transaction 3. Every year, Sefer offers a series of seven trade seminars from November 1 through May 31, it receives alt registration fees from participants by October 1, before the seminars begin. As of December 31, two of the seven seminars are completed, and the next seminar is scheduled for January 14-15. The expenses incurred in performing the seminars are toutine each year. On the first of each month from November through May, Salser pays the $600 monthly rent for the seminar location. On September 16. Sitter signs a contract with the seminar teacher, a compulors expert and excellent public speaker. The contract requires Sifter to pary the teacher $500 affor each seminar, a total of $3.500. On October 3, Sitter signs a contract with a local printing company, which wal peovide Requirements delivered the day selinered the day ing 4 seminars are a. How should Sitter Corporation treat these transactions? What nules apply? b. How would your answers change for each of the transactions if Sitter Corporation were a cash-method taxpayer? seminars are poutine each year. On the frrst of each month from November through May. Sitter pays the $600 monthly rent for the seminar location. On September 16 , Simer signs a contract with the seminar teacher, a computers expert and excellont public speaker. The contract requires sitter to pay the teacher $500 after each semina, a total of $3,500. On October 3, Sifter signs a contract with a local printing company, which wil provide lext materials for the seminas. Sitter pays the printer $450 after each seminar's materials are delivered the day before the semirar. Simer reports in year t anly 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. Sitter Corporation, a computer veodor and consulting company, uses the accrual mothod of accounting las tax year is the calendar year. The following are three of the corporation's transactions duting the current yeur: Yiew the trantaktions. Bead the requirements. Requirement a. How should Sitter Corporation trear these transactioes? Whas nies apply? (Enter in tr if none of the expense can bo doducted) Transaction 1. Sitter Corporation hired a contractor to remodel its sales flooe. The contractor completed the remodeling on November 30. On December 15, Sitter recelved a $63,000 bel from the contractor. \$ser immediatily contacted the contractor to contest $9,000 of the total charges, arguing that it exceeded the price frat was agreed upon. Sitter made no payment on the bill during its current tax year. What rules apply? Amount deductible in current year Transaction 2. simer oflers a 2-year warranty on all of its computer systems. For sales of compulen in the the remaining warranty obligations next year. What rules apply? Amount deductible in current year Transaction 3. Every yeat, Siller offers a series of seven trade seminan from November 1 through May 3t. It receives all registration fees from participants by October 1, betore the seminars begin. As of December 31, tho of the seven seminars are completed, and the next seminar is scheduled for January 14-15. The expenses incurred in pefforming the seminars are nouline each year, On the first of each month from November through Why, Steser pays the $600 monthly ront for the seminar location. On Septomber 16 , Sitter nigns a contract with the seminar toacher, a computers expert and excelient poblic speaker. The contract requires Siter to pay the teacher $500 aher each seminar, a total of \$3,500. On October 3, Steler signs a contract with a local printing company, which wil provide text materials for the seminars. Stter pays the printer $4$0 aber each seminar's materials are detivened the day besore the seminar. Sitter teports in year 1 only the tevenve related to the first fino seminars as earned by Decenter 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 Requirement b. How would your answor change if Sater Corporabion were a cash-method taxpayen? Complete the table below to identify which of your answers from Part a will change, and the amount Sicter can deduct in the current year assuming that Sitter were a cash-method taxpayer. (Exter a " F " if Sther cannot deduct any amourt in the current year.) deductible becasse they The amounts paid in the following year Sitter Corporation, a computer vendor and consulting company, uses the accrual method of accounting. Iss tax year is the calendar year. The following are three of the corporation's trantactions during the current year: View the transactions. Requirement a. How should Sitter Corporation treat these transactions? What nules apply? (Enter a V" if none of the expense can be deducted.) Transaction 1. Sitter Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30. On December 15, Sitter recelved a $63,000 bill from the contractor, Simer immediately contacted the contractor to contest $9,000 of the fotal charges, arguing that it excoeded the price that was agreed upon. silter made no poyment on the bill during its current tax year. What rules apply? Amount doductible in current year Transactien 2. Sitter offers a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $12,000 to service warranties during the current tax year, and it expects to pay $11,500 to fulfill the remaining warranty obligations next year. What rules apply? Amount deductible in current year Transaction 3. Every year, Sitter cllers a series of seven trade seminars from November 1 through May 31, it receives all registration fees from participants by October 1. betore the seminars begin. As of December 31, two of the seven 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 May, Sitter parys the $600 monthly thent for the seminar location. On September 16. Sitter signs a contract with the seminar teacher, a computers expert and excellont public speaker. The contract reguires $ mer to pary the teacher $500 atter each seminar, a total of \$3,500. On October 3. Sitter signs a contract with a local printing company, which will provide delivered the day earned by December Transactions hg 4 seminars are 1. Sitter Corporation hired a contracter to remodel is sales floce. The contractor completed the remodeling on Novomber 30. On December 15, Sitter received a $63,000 bill from the contractor. Sitter immediately contacted the contractor to centest $9,000 of the total charges, arguing that if exceeded the price that was agreed upon. Sitter made no payment on the bill during its current tax year. 2. Sitter offers a 2-year warranty on al of its computer systems. For sales of computers in the current year, it paid $12,000 to service warranties furing the current tax year, and it expects to pay $11,$00 to fulfi the remaining warranty obligations next year: 3. Every year, Sitter oflers a series of seven trade seminars from November 1 through May 31. it receives alt registration fees from participants by October 1, before the seminars begin. As of December 31, two of the seven seminars are completed, and the next seminar is scheduled for Jancary 14-15. The expenses incurred in performing the seminars are routine each year. On the first of each month from November throogh May. Sitter pays the $600 monthly rent for the seminar locasion. On September 16, Seler signs a contract with the seminar teacher, a computers expert and excellont public speaker. The contract requires siter to pay the teacher $500 after each seminar, a fotal of $3.500. On October 3, Sitter signs a contract with a local printing company, which will provide text materials for the sominars. Sitter pays the printer $450 after each seminar's materials are delivered the day belore the seminar, Sitler reports in year 1 only the revenue related to the first two seminars as eamed by December 31 (Sec. 451(c) and Riev. Proc. 2004-34). with the balance eamed in year 2 , when the remaining 4 seminars are completed. 3 year Total deduction in current year payer? nount Sitter can deduct not deduct any amount Sitter Corporation, a computer vendor and consulting company, uses the accnial method of accounting its tax year is the calendar year. The following are three of the corporation's transactions during the current year: Virc the transactions. Beadtte reguirements. Requirement a. How should Sitter Corporation treat these transactions? What fules appiy? iEnter a " ' if none of the expense can be deducted.) Transaction 1. Sitter Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30 , On December 15, Sitter recelived a $03,000 bil from the contractor. Sitter immediately contacted the contractor to contest 59.000 of the tetal charges, arguing that it exceeded the price that was agreed upon. Sitter made no payment on the bill during its current tax year. What rules apply? Amount deductible in current year Transaction 2. Sitter ollers a 2-yoar wartanty on all of its computer systems. For sales of compulers in the currect year, it paid $12,000 to service warranties during the current tax year, and it expects to pay $11,500 so fulfit the remaining warranty obligations next year. What rules apply? Amount deductible in current year Transaction 3. Every year, Sitter oflers a series of seven trade seminars from November 1 through May 31, if recelves al registration fees from participants by October 1, before the seminars begin. As of December 31, fwo of the seven seminars are completed, and the nent seminar is schedulod for January 14.15. The expenses incurred in performing the seminars are routine each year. On the first of each month from Novertber through May. Siller pays the $600 monthily rent for the seminar locasion, On September 16 , Sitter signs a contract with the seminar teacher, a compulers expert and excellent puthic speaker. The contract requines Sicter to pay the teacher $00 after each seminar, a total of \$3,500. On October 3, Siteer signs a contract with a local peinting company. which wil provide text materials for the seminars. Sitter pays the prinitor $450 after each seminar's materials are delivered the day before the seminar. Sitter reports in year 1 centy the revenue related to the first two seminars as eamed by December 31 (Sec. 451 (c) and Rev. Proc. 2004-34), with the balance eacned in year 2 , when the remaining 4 seminars are complesed. The amounts paid in the curnent year deductible because they The amounts paid in the following year deductide in the carrent year because they fail both the economic performance and all-events tests. Complete the table below to show the amounss that Sitter can deduct in the current year. (Enter a " O " not decuctiole.) are Requirement b. How would your answer change if Sitter Corporation were a cash-method taxpayen? Complete the table below to identify which of your answers from Part a will change, and the amount simer can deduct in the current year assuming that Sitter were a cash-method taxpayec. (Enter a " 0 " if Simer cannot deduct any amount in the current yeat.) Sirler Corporation, a computer vendor and consulting company, uses the acconat method of accourding, its tax year is the calendar year, The following are three of the corporation's transactions during the current year: Vow the transactions. Read the reguirements. Requirement a. How should sitter Corporation teeat these transections? What rutes apsly? ifinter a "or if none of the experse can be dectucted. Transaction 1. Sitter Corporation hired a contractor to remodel ts sales Soor. The contractor completed the remodeling on November 30 . On December 15 , Sitter recelved a $63,000 bia from the contractor, SAlter immediately contacted the contractor to contest $9,000 of the total charges, arguing that it exceeded the price that was agreed upon. Silter made no payment on the bil during is current tax year. What rules apply? Amount deductible in current year Transaction 2. Sitter offers a 2-year warranty on al of its compuler systems. For sales of computers in the current year, it paid $12,000 to service wacranties during the current tax year, and it expects to pay $11,500 if funill the remaining warranty obligations next year: What rules apply? Amount deductible in current year Transaction 3. Every year, Sitter offers a series of seven trade seminars from Novernber 1 through May 31. It rectives all registration foes from participants by October 1, belore the seminars begin. As of December 31, two of the seven 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 Novenber through May, Sitter pays the $600 montely rent for the seminar location. On September 16 . Sifter signs a contract wah the seminar teacher, a compuens expert and excellent public speaker. The contract requires Sitter to pay the teacher $00 afher each seminar, a total of \$3.500. On October 3. Siller signs a contract wth a local prinsing company, which will provide text materials for the seminars. Sitter pays the printer \$450 after each seminar's materials are delveced the day before the seminar, Sitter reports in year 1 only the revenue related to the frst two seminars as earned by December 31 (Sec, 451(c) and Rev, Proc. 2004-34), whe the balance eamed in yoar 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 sitter can deduct in the current year. (Enter a " if an amourt is not seductible) Requirement b. How would your answer change if Sitier Corporation were a cash-method taxpayer? Complete the table below to identify which of your answers froen Part a will change, and the amount Sitter can deduct in the current year assuming that Stser were a cash-method taxpayer. (Enter a " O " if Sitter cannot deduct any amount in the current yoar.]