Sue Performs Services for Lynn

question 49

Short Answer

Sue performs services for Lynn. Regarding this arrangement, use the legend provided to classify each statement.
a. Indicates employee status.
b. Indicates independent contractor status.
-Sue files a Schedule SE with her Form 1040.

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Definitions:

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a specified person.

Deposits

Funds placed into an account at a banking institution for safekeeping, which can include money market accounts, savings accounts, and certificates of deposit.

Outstanding

Refers to shares that are currently held by investors, including both public shareholders and restricted company shares.

Adjusted Bank Balance

The bank account balance after accounting for transactions like outstanding checks and deposits in transit.