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Linda and Don are married and file a joint return $12,000 in Social Security benefits a and interest. The applicable higher/lov computations for married filing jointly are $32,000 and a. Compute the couple's adjusted joint return. In 2019, they received in taxable pension benefits ne applicable higher/lower bases for Social Security Tiling jointly are $32,000 and $44,000. e the couple's adjusted gross income on a joint return. b. Don would like to know whethe like to know whether they should sell for $100,000 (at no gam TOSS) a corporate bond that pays 8% in interest each year and us in interest each year and use the o buy a $100,000 nontaxable State of Virginia bond that will pay Interest each year. Assume that their marginal tax rate is 12%. with a 12% marginal tax rate, their after-tax economic income w proceeds to buy a $100,000 nontax $6,000 in interest each year. As c. In the preceding situation part (a), if Linda works part-time and earns $30,000, by how much would Linda and Don's adjusted gross income increase? accrual basis taxpayer, sells home appliances gross income assuming that the any received a $1,200 advance payment Drake Appliance Company, an accrual basis taxpayer, se and service contracts. Determine the effect of each of the follow transactions on the company's 2019 gross income assuming company uses any available options to defer its taxes. a. In December 2018, the company received a $1,200 advance om a customer for an appliance that Drake special ordered from the manufacturer. The appliance did not arrive from the manufacturer until January 2019, and Drake immediately delivered it to the customer. The sale was reported in 2019 for financial accounting purposes. What amount is included in the 2019 gross income? b. In October 2019, the company sold a 6-month service contract for $240. The company also sold a 36-month service contract for $1,260 in July 2019. Assuming a calendar year-end, what amount is included in the 2019 gross income? c. On December 31, 2019, the company sold an appliance for $1,200. The company received $500 cash and a note from the customer for $700 and $260 interest, to be paid at the rate of $40 a month for 24 months. Because the fair market value of the note was of the customer's poor credit record, the fair market value of the only $600. The cost of the appliance was $750. What amount is included in the gross recer Included in the gross receipts and what is the gross profit The 2019 gross receipts from the transaction are $1 profit from the transaction is $ and the gross Linda and Don are married and file a joint return $12,000 in Social Security benefits a and interest. The applicable higher/lov computations for married filing jointly are $32,000 and a. Compute the couple's adjusted joint return. In 2019, they received in taxable pension benefits ne applicable higher/lower bases for Social Security Tiling jointly are $32,000 and $44,000. e the couple's adjusted gross income on a joint return. b. Don would like to know whethe like to know whether they should sell for $100,000 (at no gam TOSS) a corporate bond that pays 8% in interest each year and us in interest each year and use the o buy a $100,000 nontaxable State of Virginia bond that will pay Interest each year. Assume that their marginal tax rate is 12%. with a 12% marginal tax rate, their after-tax economic income w proceeds to buy a $100,000 nontax $6,000 in interest each year. As c. In the preceding situation part (a), if Linda works part-time and earns $30,000, by how much would Linda and Don's adjusted gross income increase? accrual basis taxpayer, sells home appliances gross income assuming that the any received a $1,200 advance payment Drake Appliance Company, an accrual basis taxpayer, se and service contracts. Determine the effect of each of the follow transactions on the company's 2019 gross income assuming company uses any available options to defer its taxes. a. In December 2018, the company received a $1,200 advance om a customer for an appliance that Drake special ordered from the manufacturer. The appliance did not arrive from the manufacturer until January 2019, and Drake immediately delivered it to the customer. The sale was reported in 2019 for financial accounting purposes. What amount is included in the 2019 gross income? b. In October 2019, the company sold a 6-month service contract for $240. The company also sold a 36-month service contract for $1,260 in July 2019. Assuming a calendar year-end, what amount is included in the 2019 gross income? c. On December 31, 2019, the company sold an appliance for $1,200. The company received $500 cash and a note from the customer for $700 and $260 interest, to be paid at the rate of $40 a month for 24 months. Because the fair market value of the note was of the customer's poor credit record, the fair market value of the only $600. The cost of the appliance was $750. What amount is included in the gross recer Included in the gross receipts and what is the gross profit The 2019 gross receipts from the transaction are $1 profit from the transaction is $ and the gross

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