Essay Available:
Pages:
1 page/≈275 words
Sources:
2 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 5.27
Topic:
Week 7 - Memo
Essay Instructions:
See attached
Essay Sample Content Preview:
Week 7 – Memo
Name:
Institutional Affiliation:
Course:
Instructor:
Date:
Question
You work at a firm as a staff accountant. Listed below are the tax situations of some of the firm’s clients. Your managing partner has asked whether the following situations represent passive or active income.
• John received $10,000 in ordinary dividends from Blue Corp.
The dividends received by John are considered passive income since John did not spend any time to receive the money but received it as a result of the money saved with Blue Corp (Easley et al., 2021).
Applicable IRS code section: Income taxes section 1-1564
• Olivia received $50,000 in wages for her job as an engineer.
The $50,000 received by Olivia in wages falls under active income since Olivia must have spent considerable time utilizing his skills to earn the money.
Applicable IRS code section: Employment taxes section 3101-3512 (Rates, 2020).
• Marcus received $16,000 in non-employee compensation from Main Street Plumbers, Inc.
Non-employee compensation is categorized as self-employment, and therefore, it is active income.
Applicable IRS code section: Employment taxes section 3101-3512
• Marian’s net income from renta...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
👀 Other Visitors are Viewing These APA Essay Samples:
- US GAAP vs. IFRS Accounting Standards4 pages/≈1100 words | APA | Accounting, Finance, SPSS | Essay |
- Importance of Being Cautious When Interpreting Correlations1 page/≈275 words | 1 Source | APA | Accounting, Finance, SPSS | Essay |
- Response to Client Request II1 page/≈275 words | 1 Source | APA | Accounting, Finance, SPSS | Essay |
- Categories of the Sarbanes-Oxley Act of 20022 pages/≈550 words | 3 Sources | APA | Accounting, Finance, SPSS | Essay |
- Investing In My Future Accounting, Finance, Spss Essay2 pages/≈550 words | APA | Accounting, Finance, SPSS | Essay |
- Accounting Essay Assignment. Effect of Changing Information Technology to Accounting Culture2 pages/≈550 words | APA | Accounting, Finance, SPSS | Essay |
- Chinese Companies' Challenges in the US Failing to Follow Financial Disclosure Regulations2 pages/≈550 words | APA | Accounting, Finance, SPSS | Essay |