Assume the current date is 3/25/2020. Tom, a new tax client, has hired you to prepare his 2019 income tax return. a. Upon reviewing his old returns, you noticed many errors. How would you answer the following questions?b. You determined that Tom has overpaid his tax on his 2016 Income Tax return because he failed to deduct his medical expenses. The additional tax refund to Tom would be $ 1,800. Tom filed his 2016 tax return on 3/1/2017. What is your advice?c. Tom’s 2015 income tax return contained an error in calculating a deduction. He underpaid his tax by $ 250, and is worried that the IRS will come after him. Tom filed the return on 7/18/2016. Does Tom have cause for concern?d. After talking about the 2015 return, Tom told you that he also had an issue on his 2014 return which was filed on 2/20/2015. The Gross income reported on his tax return was $ 50,000. Tom explained that he inadvertently left off $ 15,000 in income from the return believing that it was tax free. After discussing the item with you he now realizes this was taxable. Does Tom have cause for concern?e. You complete Tom’s 2019 tax return and he owes an additional $ 18,000 in tax. Tom tells you to file an extension, because he cannot pay the amount due in full. What is your advice to Tom?

Sye chase started and operated a small family architectural firm in 2016. the firm was affected by two events: (1) chase provided $25,000 of services on account, and (2) he purchased $2,800 of supplies on account. there were $250 of supplies on hand as of december 31, 2016. record the two transactions in the accounts. record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. post the entries in the t-accounts and prepare a post-closing trial balance.

Dakota products has a production budget as follows: may, 16,000 units; june, 19,000 units; and july, 24,000 units. each unit requires 3 pounds of raw material and 2 direct labor hours. dakota desires to keep an inventory of 10% of the next month’s requirements on hand. on may, 1 there were 4,800 pounds of raw material in inventory. direct labor hours required in may would be:

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate.the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received.c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.