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ACCT 553 Week 2 Homework FOR MORE CLASSES VISIT www . acct553study . com
Chapter 3 ( 5 pts )
3 . Explain the distinction between an " above the line " deduction ( i . e . FOR AGI ) and a below the line deduction ( i . e . FROM AGI ). Which one is more valuable ?
Chapter 13 ( 5 pts )
4 . What is an Installment Sale ? Is it a form of income " deferral " ? When can ' t you elect this form of reporting ?
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Chapter 4

ACCT 553 Week 2 Homework FOR MORE CLASSES VISIT www . acct553study . com

1 . Your brother is short on cash and cannot pay his rent this month . You pay his rent for him . Is this taxable income to your brother ? Do you get a deduction ? ( 2 pts )
2 . Which of the following items would be excluded from income ? ( a ) $ 100 bill found under the sugar caddy at the restaurant ( b ) Inheritance of a car from your grandmother valued at $ 5,000 . ( c ) Loan from your father-in-law to start your business , ( d ) Child Support received totaling $ 16,500 . ( 4 pts )
Chapter 5
3 . Shaun & Kayla earned the following in 2013 : Interest on a Savings account of $ 36 , Interest on a U . S . Series EE Savings Bond of $ 25 ,