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,