Accounting – Trish & Quality Appliance Company



1)Trish had the following transactions during 2010:
Salary $70,000
Interest income on bonds
Issued by City of Newark $3000
Issued by Chevron Corporation $2000 $5000
Alimony received $4000
Child support received $12000
City and state income taxes paid $5000
Bank loan obtained to pay for vacation $8000
What’s trish’s AGI for 2011?

2) George is employed by the Quality Appliance Company. all the full-time employees are allowed to purchase appliances at the company’s cost plus 5%. The employee also is given, at no cost, a 1 year service contract on al the goods purchased from the company. George purchased a refrigerator for $420. The company’s normal selling price for the refrigerator is $800. George also received a service contract, at no charge, that had a value of$120. During the year, George was required to have his refrigerator serviced once. The cost of the call would have been $50 if he had not had the service contract. Is George required to recognize any income from the purchase of the refrigerator and the receipt of the service contract?


There are no reviews yet.

Be the first to review “Accounting – Trish & Quality Appliance Company”

Your email address will not be published. Required fields are marked *