Explain Why the Taxpayer in Each of the Following Situations

question 32

Essay

Explain why the taxpayer in each of the following situations either does or does not have taxable income and determine the amount,if any,that the taxpayer would have to recognize.
a.On December 1,2013,Tomlin,a cash basis taxpayer,bills a customer $5,000 for services rendered throughout 2013.The customer comes to Tomlin's office on December 30,2013,and offers to pay him the $5,000 amount owed.Tomlin suggests that the customer mail the check to him so he could see how quickly the post office could get the check to him through the mail.The post office delivers the check to Tomlin on January 10,2014.Tomlin promptly deposits the check in the bank.
b.Patty,age 65,will retire this year.Twenty years ago she purchased a retirement annuity contract at a cost of $6,000.Under the terms of the contract,Patty is to receive $150 per month for 10 years after reaching age 65.During the current year,Patty receives $1,200 (8 payments).
c.Bud is an accountant for Big Oil Company.In his spare time,Bud collects unique beer cans and bottles.During a party at his house,one of his friends tells him that his can of Billy Beer is a hot item in the professional collector's market.Bud investigates and instead of selling the Billy Beer,he trades the can of Billy Beer for a bottle of Leinenkugles beer.
d.Rosemary is awarded the "Outstanding Teaching Award" at DePauw University.She receives a plaque and $3,500.She assigns the $3,500 to DePauw to establish a scholarship for economics majors.

Describe the challenges and solutions associated with temporary and contract workers.

Identify and describe different types of distributions (unimodal, bimodal, multimodal, normal, skewed, and flat).

Understand the concepts of modality, variability, and symmetry in distributions.

Apply knowledge of distribution shapes to analyze and interpret real-world data.

---

Definitions:

Wealth-Creating Assets

Resources or investments that have the potential to generate income or appreciate in value over time, contributing to an individual's or entity’s financial wealth.

Elite Theory

A theory in political science and sociology, which suggests that society is divided between a small ruling elite and the masses or the majority.

Political Jobs

Positions within the government or associated organizations that are often appointed based on political affiliation rather than merit or civil service exams, typically involving policymaking or political support roles.

Bill of Rights

The initial ten amendments of the United States Constitution, adopted in 1791, ensure rights including the freedom of speech, assembly, and religious practice.