=================================================== ACC 401 Week 1 DQ 1 Basic Concepts
On December 18 , 2009 , a landlord rents an apartment for $ 700 per month and collects the first and last month ’ s rent up front . It is customary that tenants apply the deposit to their last month ’ s rent upon moving out .
An accountant agrees to perform $ 500 of tax services for an auto mechanic who has agreed to perform repairs on the car of the wife of the accountant . The mechanic repairs the car in December 2009 and the accountant starts and completes the tax work in March 2010 .
36 . A taxpayer who purchases a Series EE U . S . Savings Bond must report the interest income ( i . e ., increase in value ) on the bond on the date the bond is redeemed or the taxpayer can elect to report the interest currently in income . Under what circumstances should a taxpayer report income at maturity ? Under what circumstances is it more advantageous to report income currently ?
42 . Sean , who is single , received social security benefits of $ 8,000 , dividend income of $ 13,000 , and interest income of $ 2,000 . Except as noted , those income items are reasonably consistent from year to year . At the end of 2009 , Sean is considering selling stock which would result in an immediate gain of $ 10,000 , a reduction in future dividends of $ 1,000 , and an increase in future interest income of $ 1,500 . He has asked you for advice . What course of action do you recommend
=================================================== ACC 401 Week 1 DQ 1 Basic Concepts
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