Travis is a professional landscaper. he provides his clients with a one-year (12-month) warranty for retaining walls he installs. in june of year 1, travis installed a wall for an important client, sheila. in early november, sheila informed travis that the retaining wall had failed. to repair the wall, travis paid $700 cash for additional stone that he delivered to sheila’s location. travis also offered to pay a mason $800 to repair the wall on november 20 of year 1. due to some bad weather and the mason’s work backlog, the mason agreed to finish the work by the end of january of year 2. even though travis expected the mason to finish the project by the end of february, travis informed the mason that he would pay the mason the $800 when he completed the job. a. assuming travis is an accrual-method taxpayer, how much can he deduct in year 1 from these activities b. assuming travis is a cash-method taxpayer, how much can he deduct in year 1 from these activities?

On june 1 of the current year, chad wilson established a business to manage rental property. he completed the following transactions during june: opened a business bank account with a deposit of $28,000 from personal funds. purchased office supplies on account, $2,690. received cash from fees earned for managing rental property, $7,390. paid rent on office and equipment for the month, $3,310. paid creditors on account, $1,230. billed customers for fees earned for managing rental property, $6,130. paid automobile expenses (including rental charges) for the month, $740, and miscellaneous expenses, $370. paid office salaries, $2,330. determined that the cost of supplies on hand was $1,590; therefore, the cost of supplies used was $1,100. withdrew cash for personal use, $2,210. required: 1. indicate the effect of each transaction and the balances after each transaction: for those boxes in which no entry is required, leave the box blank. for those boxes in which you must enter subtractive or negative numbers use a minus sign. (example: -300) answer

Jacob is a member of wcc (an llc taxed as a partnership). jacob was allocated $155,000 of business income from wcc for the year. jacob’s marginal income tax rate is 37 percent. the business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional medicare tax. (round your intermediate calculations to the nearest whole dollar a) what is the amount of tax jacob will owe on the income allocation if the income is not qualified business income? b) what is the amount of tax jacob will owe on the income allocation if the income is qualified business income (qbi) and jacob qualifies for the full qbi duduction?

Warner inc. sells a high-speed retrieval system for mining information. it provides the following information for the year. budgeted actual overhead cost $965,700 $905,000 machine hours 58,570 49,200 direct labor hours 107,300 104,200 overhead is applied on the basis of direct labor hours. compute the predetermined overhead rate. predetermined overhead rate $ per direct labor hour link to text determine the amount of overhead applied for the year. the amount of overhead applied $