Federal Income Tax I Self Employed Income Bella Bonita is self-employed as a hair stylist. She works at Fancy’s Inc., where she rents a station. On Saturdays, she works at Fancy’s in the morning and then drives to the senior center to do hair for the residents. Bella is a cash-basis taxpayer who materially participates in the operation of her business. Bella did not make any payments that would require her to file Form 1099. She received Form 1099-MISC for $7,800 from Fancy’s, and had
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How are the income statement and statement of cash flows used to make business decisions? The income statement reflects the company’s financial performance by showing how much money was generated (revenue), how much was spent (expenses), and the difference (profit) between the two over a period of time. It is divided into the operating and non-operating sections. It can also tell how much money shareholders would receive if the company were to distribute all of its net earnings. The cash flow
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year Starship reported that Rachel's share of dividend income was $3,700 and his share of municipal interest was $2,750. Early this year Rachel found a bundle of $100 bills in the alley outside his apartment. When no one claimed the money, the cash (a total of $2,400) was returned to Rachel. Finally, Rachel earned salary of $42,000 but almost $6,500 was withheld for income taxes and FICA tax. Compute Rachel's (a) realized income and (b) gross income. BE SURE TO CALCULATE BOTH AMOUNTS. a) 3,700 + 2,750
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In order to determine how income statements and statements of cash flows influence business decisions, it is important to know the definition of the two. Income Statements are defined as the summaries of an entity’s revenues, expenses, gains, and losses for a period of time and thereby reports the entity’s results of operations for that period of time. It determines if an entity operates at a profit during a certain time frame, and reports revenues, expenses, gains, and losses. The Statement of Cash
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In order to know the limitations of Americas National income accounts and how they represent our standard of living, it is necessary to kn0ow our GNP or Gross National Product. According to Chron.com, a business expert web site, it is the total output of and economy, our economy in this case. It is said that the production output of America is directly related to how well we are living, our economy is doing, and also how well we are prepared for any sudden disruptions in the course
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Income Taxes: Flat or Fixed Since President Abraham Lincoln introduced income taxes, it has been a profoundly discussed topic among the citizens. Americans have innumerable amount of beliefs and disagreements about how the tax brackets function and should function. A large number of Americans are pushing for a change in the way income tax system work. At the same time, many agree to keep the income tax brackets that separate the wealth classes. The controversy in connections with income taxes is
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concept. 2 Restrictions: 1. Only deductions allowed by the tax law may be subtracted to compute taxable income. Congress allows deductions for the costs of earning income and certain expenditures. 2. A deduction is allowed for an item only if all requirements are satisfied. Business Expense: the expense must have a business purpose that is unrelated to its tax effect. Gross Income: Only the excess of an individual’s capital investement. The deduction for an item may not exceed the cost
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presentation of Other Comprehensive Income (OCI) for Australian reporting entities. Historically, there has been a long standing debate on what items should be included in income, operating income (dirty surplus) or an all-inclusive income (clean surplus). Dirty surplus accounting excludes all items not related to the current operations of the firm and is generally based upon by past firm transactions. The all-inclusive method recognises both operating income as well as revaluation increments (gains
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Income-tax Act, 1961 1. ASSESSMENT YEAR: “Assessment year” means the period starting from April 1 and ending on March 31 of the next year. 2. PREVIOUS YEAR: Income earned in a year is taxable in the next year. The year in which income is earned is known as previous year and the next year in which income is taxable is known as assessment year. 3. PERSON: The term “person” includes: a. An individual ; b. A Hindu undivided family ; c. A company ; d. A firm ; e. An association of persons
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Accounting Policies for Reporting Income Accounting Policies for Reporting Income Dana Ferretti ACC 303 Dr. M. Austin Zekeri Intermediate Accounting 1 November 20, 2011 Accounting Policies for Reporting Income GAAP (Generally Accepted Accounting Principles) refers to a common set of standards and procedures that companies follow to present their income and expenses, assets and liabilities of their financial statements. The FASB (Financial Accounting
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