Besito Company, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December,...
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Besito Company, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following cash payments. To what extent does each payment represent current taxable income to Besito? Required: $ repayment of a loan from an employee. Besito loaned $ to the employee six months ago, and the employee repaid the loan with interest. $ deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment. $ shortterm loan from a local bank. Besito gave the bank a written note to repay the loan in one year at percent interest. $ prepaid rent from the customer described in part b The rent is $ per day for the day period from December through February
Besito Company, a calendar year, cash basis taxpayer, leases lawn and garden equipment. During December, it received the following cash payments. To what extent does each payment represent current taxable income to Besito?
Required:
$ repayment of a loan from an employee. Besito loaned $ to the employee six months ago, and the employee repaid the loan with interest.
$ deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment.
$ shortterm loan from a local bank. Besito gave the bank a written note to repay the loan in one year at percent interest.
$ prepaid rent from the customer described in part b The rent is $ per day for the day period from December through February
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