Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Kamal sold cryptocurrency in 2021. Which form or schedule should he use to report the income from this sale on his U.S. federal tax return?

Form 1099-INT

Schedule D (Form 1040)

Schedule E (Form 1040)

Schedule C (Form 1040)

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Verified step by step guidance

Understand the nature of the transaction: Kamal sold cryptocurrency, which is considered a capital asset for tax purposes in the U.S. This means the sale is subject to capital gains tax.

Determine the correct form for reporting capital gains: Capital gains and losses from the sale of assets like cryptocurrency are reported on Schedule D (Form 1040). This form is specifically designed for reporting gains and losses from investments.

Review the other options provided: Form 1099-INT is used for reporting interest income, Schedule E (Form 1040) is used for reporting income from rental properties or royalties, and Schedule C (Form 1040) is used for reporting income from self-employment. None of these are relevant to reporting cryptocurrency sales.

Confirm the correct choice: Since cryptocurrency sales are treated as capital gains, Schedule D (Form 1040) is the appropriate form to use.

Ensure proper documentation: Kamal should gather all records related to the cryptocurrency sale, including purchase price (cost basis), sale price, and any associated fees, to accurately complete Schedule D.