ACCT 422 SEU Income Is Recognized when It Is Earned Question

User Generated

UNFFNANYUNZZNZ

Business Finance

Acct 422

Saudi electronic university

ACCT

Description

Unformatted Attachment Preview

College of Administration and Finance Sciences Assignment (3) Deadline: Saturday 27/11/2021 @ 23:59 Course Name: Tax and Zakat Accounting Student’s Name: Course Code: ACCT 422 Student’s ID Number: Semester: 1st CRN: Academic Year: 1443 H For Instructor’s Use only Instructor’s Name: Dr. Ashfaque Ahmed Students’ Grade: /5 Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answers must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism. • Submissions without this cover page will NOT be accepted. College of Administration and Finance Sciences Assignment 3 Q-1- To make income taxable, income must be realized and recognized. Explain in your own words the difference between income realization and income recognition, and then provide a short numerical example to indicate the difference (Do not copy the same numerical example from other students). (1.5 mark) Answer Q.2- Mr. X and Mrs. Y are married and have two dependent children. P & Q They also fully support Mrs. Y’s mother who lives with them and has no income. Their 2014 tax and other related information is as follows: (2 marks) Particulars Total salaries Bank account interest income Municipal bond interest income Value of employer provided medical insurance Value of premiums for $ 100000 of group term life insurance provided by employer Gift from X’S parents Gain from the sale of qualified small business stock acquired in 2008 Total itemized deductions Dividend income—from ABC stock, Loan from X’S parents Amount in $ 320,000 7,000 3,000 11,000 1,000 30,000 30,000 32,000 4,000 10,000 Required: Compute Mr. X and Mrs. Taxable income. (Show all calculations in proper /good form.) Q.3- Ahmed’s medical expenses include the following: (1.5 mark) Particulars Food for personal use (expenses) Travel allowances Visitors fees Prescription drugs Eyeglasses General purpose vitamins Medical premiums Doctors’ fees Hospital fees Amount in $ 2,000 5,000 1,000 1,200 700 200 21,700 4,000 6,700 Ahmed’s AGI for the year is $66,000. He is single and age 59. Insurance company reimburses none of the medical costs and other related items. After considering the AGI floor, Required - What will be Ahmed’s medical expense deduction?
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer


Anonymous
Great! Studypool always delivers quality work.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags