9. Arturo, a consultant, uses the cash method of accounting for his business. Arturo recently provided...

9. Arturo, a consultant, uses the cash method of accounting for his business. Arturo recently provided consulting services to his best customer Sergio. When should Arturo recognize income from this service? (Points : 0.07)

a. When Sergio writes a check, made out to Arturo.
b. When Arturo deposits Sergio’s check.
c. When Sergio gives the check to Arturo.
d. When Sergio receives an invoice from Arturo for the service.

Question 10.10. Angie and Patrick were married on September 1 of this year. Following a honeymoon in Hawaii, Patrick died of a heart attack. Neither Angie nor Patrick had any dependents. What filing status can Angie use this year? (Points : 0.07)

a. Angie must use the single filing status because she was not married as of the end of the year.
b. Angie must use the single filing status because she was not married as of the end of the year.
c. Angie will be able to file as married filing jointly as long as she would have qualified for this filing status if Patrick had survived.
d. Angie may use the head of household filing status.
e. Angie will be eligible to file as a surviving spouse.

Question 11.11. Which of the following is not an itemized deduction from adjusted gross income? (Points : 0.07)

a. Alimony paid.
b. Medical expenses in excess of 10% of AGI.
c. Charitable contributions.
d. Home mortgage interest.

Solutions

Expert Solution

Solution: When Sergio gives the check to Arturo

Explanation: Under cash method income is recognized when the cash is received, and expenses when they are paid in cash.

10. Angie and Patrick were married on September 1 of this year. Following a honeymoon in Hawaii, Patrick died of a heart attack. Neither Angie nor Patrick had any dependents. What filing status can Angie use this year?

Solution: Angie will be able to file as married filing jointly as long as she would have qualified for this filing status if Patrick had survived.

Explanation: Angie will be allowed to file a joint IT return as long as she would have qualified for this filing status if Patrick had survived

11. Which of the following is not an itemized deduction from adjusted gross income?

Solution: Alimony paid

Explanation: The alimony can be deducted from income the amount of alimony you paid whether or not you itemize the deductions

ekkarill92 answered 1 year ago

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