(SOLVED) MG is an accrual basis corporation In 2015 it

wrote
MG is an accrual basis corporation. In 2015, it wrote off a $65,000 account receivable as
uncollectible. In 2016, it received a $65,000 check from the creditor in full payment of this
receivable. a. What was the effect of the write-off on MG’s 2015 financial statement income and
taxable income? […]

Assuming a 35 percent marginal tax rate, compute the after-tax cost of the following business
expenses: a. $5,600 premium on business property and casualty insurance. b. $1,200 fine paid
to Wisconsin for violation of a state law. c. $3,700 premium on key-person life insurance. d.
$50,000 political contribution. e. $7,800 […]

Acme is an accrual basis corporation. Mrs. T, Acme’s chief financial officer, is a cash basis
individual. In December 2015, Acme’s board of directors decided that Mrs. T should receive a
$20,000 bonus as additional compensation. Acme paid the $20,000 bonus to Mrs. T on January
12, 2016. In which […]

Company N, an accrual basis taxpayer, owes $90,000 to Creditor K. At the end of 2015,
Company N accrued $7,740 interest payable on this debt. It didn’t pay this liability until March
3, 2016. Both Company N and Creditor K are calendar year taxpayers. For each of the following
cases, […]

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In 2014, AS, an accrual basis corporation, contracted with a nationally prominent artist to paint a
mural in the lobby of the new corporate headquarters under construction. The artist’s
commission was $180,000, payable on completion of the mural. The artist finished her work and
received the $180,000 commission in 2016. […]

KLP, a calendar year corporation, sponsored a contest for its customers with a grand prize of
$100,000 cash. Contestants could enter the contest from June 1 through November 30. KLP
selected the winner and announced her name on December 20. However, it didn’t present a
$100,000 check to the winner […]

GreenUp, a calendar year, accrual basis taxpayer, provides landscaping installation and
maintenance services to its customers. In August 2015, GreenUp contracted with a university to
renovate its lawns and gardens. GreenUp agreed to complete the entire renovation by May 31,
2017, and the university prepaid the entire $100,000 fee. GreenUp […]

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