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Dave is a plumber who uses the cash method of accounting. This year Dave requested that his clients make their checks payable to his son, Steve. This year Steve received checks in the amount of $62,000 for Dave’s plumbing services. Which of the following is a true statement? A) Dave is taxed on $62,000 of plumbing income this year.
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Dart must use the accrual method of accounting. Joan Reed exchanged commercial real estate that she owned for other commercial real estate plus cash of $50,000. The following additional information pertains to this transaction: Property given up by reed fair market value: $500,000 Adjusted basis: 300,000 Property received by Reed Fair market value: 450,000 What amount of gain should be …
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04/03/2020 · The investor purchases another property and uses $10,000 in cash to leave $15,600 in his cash account. Net worth increases by $7,000 for equity pay down: $10,800 for cash flow and $25,000 for the purchase of a new property. The total increase in net worth is now $133,600. You may have noticed this investor just mortgaged his fifth house. For many people, getting a loan on more than four houses …