Question About Depreciation In Tax Return Urgent

The net income reported on the income statement for the current year was $225,000. Depreciation recorded on pl?

The net income reported on the income statement for the current year was $225,000. Depreciation recorded on plant assets was $38,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $1,000 and $11,000 respectively. How much cash was provided by operating activities?


A. $259,000

B. $225,000

C. $205,000

D. $243,000

. Which if any, of the following transactions are assets, liabilities, income, or expenses items?

a) correct
b) this one is a bit weird since individuals generally operate on a cash basis. On an accrual basis, however, you would have:
CCard liab.: $900 AND expense the $900. You have accrued that expense, you just haven't actually paid it in CASH yet - rather, you've "paid" it in credit. When the CCard bill comes in, the liability decreases and Cash decreases. You incur the expense because you've received the goods. No asset is created because Scott does not own the earrings - they were a gift - NOT Scott's asset.
IF they were to remain on Scott's balance sheet - you'd have Asset: $900, then, initially Account Payable: $900, which is paid by the Credit Card, so A/P is reduced by the $900 and the CCard liability is increased by that $900. If the item is recorded as an asset, that means it's been capitalized, so it's cost is not expensed. (If it were a depreciable asset, it would be "expensed" through depreciation over it's "useful" life.)

c) Last fall, Scott would record cash: 3500 and liability: 3500. In the meantime, he should be accruing interest - expensed to interest payable (a current liability).

d) 20 pmts left totalling $4500...with half as interest means 4500/ 2 = $2,250 Liability
Interest payable each month: 225 /2 = $112.50
e) Taxes get tricky...but simply.
at the end of the year Scott would have
Tax expense: $3,150
Tax Refund receivable: $650 asset

In the current year Alice reports $150,000 of salary income, $20,000 of income from activity X, and $35,000 an?

In the current year Alice reports $150,000 of salary income, $20,000 of income from activity X, and $35,000 and $15,000 losses from activities Y and Z, respectively. All three activities are passive with respect to Alice and are purchased during the current year.

What is the amount of loss or Activity X?