An examination of customers accounts shows that accounts totaling $690 should be written off as uncollectible. They ask if youll sign up for it and assure you theyll take care of the payments. This statement is false. 5.8 Select each marker to see what it does. This, D&R Company, a calendar year corporation, purchased $1,116,000 of equipment on. Scenario One: This statement can not become false. 2060 Property tax are imposed by the local government. Prepare journal entries to record the adjustments entered on the six-column table. The bank reconciliation as of December 31, 2021, includes the following facts. 4b. 2050 1990 The individual pays tax on the tax rate of the individual. $$ Cash $ 19,200 Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through g and then completing the adjusted trial balance columns. ), Burton Company acquired new machinery by performing professional services worth, Cosmo Inc. purchased an asset costing $67,500 by paying $13,500 cash at date of purchase, The difference between the before-tax cost and after-tax cost of an asset equals the net, L&P Inc., which manufactures electrical components, purchased new equipment for use in, Tregor Inc., which manufactures plastic components, rents equipment on a monthly basis, False (The rent must be capitalized to inventory under the unicap rules. 9.8 C-Some states don't collect sales tax. Sales tax are imposed by most of the states. Useful life (years) 8 5 Reported on the bank statement is a canceled check that the company failed to record. No warranty expense has been recorded for 2021. Merchandise inventory 15,000 (1-2 sentences. Which of the following. A truck is purchased and placed in service on January 1, 2021. A basic premise of federal income tax law is that an expense is deductible unless the. Temperature (Fahrenheit) Each of the 12 regional circuits has a court of appeals. The ending inventory of merchandise is counted and determined to have a cost of $13,900. What did he call this accepting attitude? b. Which of the following statements is true? ), Pettit Company purchased heavy equipment by giving the seller a $30,000 cash down. A) Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable) More : Which of the following statements about taxes is false? Other assumptions include that the individual is single, has no dependents and no adjustments to his income, he or she will take the standard tax deductions and will not claim tax credits. 57.6 Identify the independent (test) variable and the dependent (outcome) variable: You can specify conditions of storing and accessing cookies in your browser, States dontcollect income tax the government does so B. Which of the, Song Company, a calendar year taxpayer, purchased a total of $614,400 tangible, d (Song can elect to expense $49,600 of the cost ($134,000 limited dollar amount - [$614,400 - $530,000]). (1-2 sentences. Bank service charges (miscellaneous expense) 26 Scenario Two: Carbon dioxide emissions decrease 200 190 Stanley Inc., a calendar year taxpayer, purchased a building and placed it in service on, False (The MACRS calculation for buildings uses a midmonth convention. Expected salvage value $ 3,000 $ 3,600 Which of the following statements about MACRS is false? 57.4 Useful life (years) 8 5 Depreciation expense for the two items of equipment used during year 2021. For each scenario, record the carbon dioxide emission rate and the global temperature. Cash balance per bank $ 16,200 The $26,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. December 31, 2021 60.4 Which of the following statements concerning business goodwill is false? 2040 Its cost is being depreciated with the straight-line method using the following facts and estimates. 3. 2060 The $15,000 loss is an ordinary loss that can be used to offset ordinary income. Taxes are imposed on the net income of the person. B.high-income groups pay more taxes absolutely than do low-income groups. Merchandise inventory 15,000 Which of the following statements about taxes is FALSE? 4a. 3. B) The firm's marginal tax rate may fluctuate due to changes in the tax code and changes in the firm's income bracket. A) Governments generally assess property taxes on personalty based on the value of the property as estimated by the government assessor. 1990 Prepare the statement of retained earnings (cash dividends during 2021 were $21,000), for 2021. Original cost $ 29,200 $ 22,400 Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $755. Which of the following statements about the depletion deduction is false? 2010 Which of the following statements are true?1. C. 120 A tax structure is called progressive whenA.the average tax rate decreases if incomedecreases. First-year depreciation for book, Lensa Inc. purchased machinery several years ago for $400,000. Outstanding checks 2,350 Levied, property, sales, income, diverging taxes, indirect taxation, progressive. 190 4c. When the cash was received, the full amount was credited to the Extermination Services Revenue account. True How would you respond? Assume that the variables are $x_1$ and $x_2$. A-Taxes are collected a the local, state and federal level. This site is using cookies under cookie policy . The rate change is intended to affect social behavior. Bank service charges (miscellaneous expense) 26 Accumulated depreciationEquipment 14,070 Miscellaneous expense 1,270 Depreciation expense for the two items of equipment used during year 2021. The MACRS calculation is based on the estimated useful life of the depreciable asset. MACRS depreciation for buildings is based on the straight-line method. Expected salvage value $ 3,000 $ 3,600 This statement is true, as the states do not collect income tax. The note was signed with First National Bank on December 31, 2021. Income tax imposed at the federal and state level. . 2050 Certain states have no state income tax. A. The company offers a warranty for the services it sells. December 31, 2021 Cash balance per books 19,200 Transfer tax isr tax is a. Select the step forward button once. representing the state in the U.S. Congress Following is the company's unad Stanley Inc., a calendar year taxpayer, purchased a building and placed it in service on June 3. Required: On September 1, 2021, the company is paid $15,900 cash in advance to provide monthly service for an apartment complex for one year. 57 The following information in a through h applies to the company at the end of the current year. Original cost $ 43,000 Which of the following statements about taxes is false? Sprayer Injector Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. Selkie Inc. paid a $2 million lump sum to purchase a business. They ask if youll sign up for it and assure you theyll take care of the payments. The company began providing the services in September. A) Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable) 1. Interest expense 0 Government L levies a 4% excise tax on restaurant meals. Hint: Item b requires two adjustments. Obviously it is the last choice, letter D. Taxes at the local, state and federal level are all equal. At least two of these ten statements are false.3. 3. How much of this cost can Song elect to expense under Section 179? Environmental clean-up costs are deductible in the year incurred. Common stock 21,000 write the system of a linear equation that is represented by the given augmented matrix. All states have a flat state tax. Utilities expense 9,000 Start Over: Use this to reset the model if needed. to a history of late payments. The accounting treatment of research and experimental, Zola Inc. paid a $10,000 legal fee to the attorney who resolved a dispute over Zola's title, A (The capitalized expense is an unfavorable temporary difference that will reverse when Zola, Which of the following statements about the tax treatment of research and experimental, D (The tax principle of conservatism inhibits the premature deduction of expenditures that result, Hoopin Oil Inc. was allowed to deduct $5.3 million of intangible drilling and development, C (The IDC associated with productive wells undeniably result in a long-term economic benefit. 150, Describe two real or made up situations in the workplace when you would need writing skills. This year, Nigle Inc.'s auditors required the corporation to write down the $1 million book. Allowance for doubtful accounts $ 850 Required: 4b. 60 Accumulated depreciationEquipment 14,070 Which of the following is a false statement? 1980 2. 9.8 Determine amounts for the following items: Warranty expense 0 (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) Depreciation expenseEquipment 0 Imposed upon gratuitous transfer of propertyImposed upon gratuitous transfer of property b. Expected salvage value $ 12,400 JebSim Inc. was organized on June 1 and began business on August 18. D. 150 Estates and gift taxes are applied by federal and some of the state government. c. Self-transcendence. 4.2 Which of the following statements is true? JebSim Inc. was organized on June 1 and began business on August 18. Useful life (years) 4 Earnings per share is of great significance to an operator on the stock exchange buying and selling the shares. The after-tax cost of an expenditure is minimized when the expenditure is deductible in the current year. 1970 which of the following statements about taxes is FALSE? The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. 58 For average people, the amount of tax payment would be directly taken from their salary payment by the companies where they work. Which of the following statements about the cash method of accounting is false? Depreciation expense for the truck used during year 2021. public accountant? ), A firm can use LIFO for computing cost of goods sold for tax purposes only if it uses, In an inflationary economy, the use of FIFO maximizes the cost of goods sold and, False (In an inflationary economy, the use of LIFO maximizes the cost of goods sold and minimizes, A book/tax difference resulting from application of the unicap rules to manufactured. 58 1970 \end{array}\right] Sales (of merchandise) 93,826 a. 7.8 1. Which statement about taxes on personal property is false? Not all types of income are taxes: while earned income and passive income are taxes, portfolio income is not taxed. Which of the following statements is true? 2020 2.0 points), Imagine youre renting an apartment with a friend after high school. Merchandise inventory 15,000 where as, The Gram Sabha, it is the place where all plans for the work of the gram panchayat are placed . Interest earned (on bank account) 74 Accounts payable 5,550 false Planning opportunities are created when the tax law applies differentially to alternative business transactions. Kigin Company spent $240,000 to clean up hazardous waste that had contaminated land used in Kigin's business. The answer is B can be explained asWith regard to Gram Panchayat :a)It levees and collects local taxes.c)Seats are reserved for women, SC and ST in the Panchayat.d)Their main task is to implement development programmes for all villages that come under it.All the statements are correct. Rent expense 20,000 Bad debts expense 0 justed trial balance as of December 31, 2021. Correct (reconciled) ending balance of Cash; and the amount of the omitted check. Deposit in transit 3,000 9.8 The company began providing the services in September. An examination of customers accounts shows that accounts totaling $690 should be written off as uncollectible. The income effect is theoretically stronger for a family's secondary wage earner than for the family's primary wage earner. to a history of late payments. 59.2 2020 59.6 a. The data for the years 19602010 are already filled out for you. A) Taxes are collected at the local, state, and federal level. Extermination services revenue 82,000 Regarding the federal court system, which of the following statements is false? Under the cash method, annual taxable income always equals annual net cash flow. Purchased goodwill is amortizable both for book and tax accounting purposes. 2100 No warranty expense has been recorded for 2021. Tax is the amount of payment an individual and corporation pay to the government from its income. Explain how macronutrients are different than micronutrients, sadie was prescribed betaxolol ophthalmic drops by her ophthalmologist to treat. 2070 2040 Increase carbon dioxide emissions by 0.2 for each step forward for the rest of scenario three. The taxpayers fall into seven categories depending on the taxable income-10%, 12%, 20%, 24%, 32%, 35% to 37%. How would you respond? In this section, please include the if/then statements you developed during your lab activity. Bad debts expense 0 Scenario Three: How many hours of higher education are required to become a certified Deposit in transit 3,000 Which of the following statements is true? Taxpayers are not entitled to any deductions unless specific provisions in the tax code allow the deductions. 1. 1 & 4 & 9 The current carbon emissions are 9.8 gigatons, or 9.8 billion tons. Which of the following capitalized cost is not amortizable for tax purposes? According to the contract, Firms engaged in the extraction of natural resources such as oil, gas, or minerals can, False (Firms can deduct the greater of cost depletion or percentage depletion.). C. 120 Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable) and FICA. Procedure Property tax rates are determined annually based on budgetary needs of the local jurisdiction. 8 Which of the following statements about the cash method of accounting is true? Interest revenue 894 Interest earned (on bank account) 74 A) Taxes are collected at the local, state, and federal level B) Some states don't collect income tax C) Some states don't collect sales tax D) Taxes at the local, state and federal level are all equal 2070 False. Colby Company performed professional services for M&E Inc. A-Taxes are collected a the local, state and federal level. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $755. B. they provide funds for Social Security they include Medicare taxes both employers and employees pay these taxes they are lump sum taxes not based on wages / salaries Show transcribed image text Expert Answer Payroll taxes are usually imposed View the full answer Accounts payable 5,550 Set the carbon dioxide emissions rate to 9.8 gigatons. Unearned services revenue 0 Depreciation expenseEquipment 0 A) A taxpayer who is married for less than half the year may elect to use the single rates for that year. B. Wages expense 46,000 The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. An examination of customers accounts shows that accounts totaling $690 should be written off as uncollectible. Time Step Size: This will allow you to view the data every 5 years or every 10 years. c. Self-employment tax must be calculated and paid using Schedule SE. Rent expense 20,000 You can specify conditions of storing and accessing cookies in your browser. Repairs expense 13,500 Long-term notes payable 26,000 a. social structure b. achieved status c. ascribed status d. roles e. role conflict f. society g. horticultural society h. hunting and gathering society i. agricultural society j. industrial society k. organic solidarity I. mechanical solidarity. The following information in a through h applies to the company at the end of the current year. Interest revenue 894 In the literature of social sciences and philosophy, positive statements refer to the statements which is stating a fact, is objective, and the statement can be tested on the basis of available data or evidence. A. Your friend wants to get satellite TV but cant because they have bad credit due Assume Bug-Offs adjusted balance for Merchandise Inventory matches the year-end physical count. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. Explain the difference between the greenhouse effect and global warming. b. Original cost $ 29,200 $ 22,400 US imposes tariffs on imported goods. Complete your hypothesis (above). 9.8 9.8 150, Describe two real or made up situations in the workplace when you would need writing skills. This additional tax is used to help . Continue stepping forward once, decreasing the carbon emissions each time, until you reach 2110. Justification for the correct and incorrect answer: Taxes are collected at the local, state and federal level: This option is incorrect. A truck is purchased and placed in service on January 1, 2021. Set the carbon dioxide emissions rate to 9.8 gigatons. TF.09-071 In order for a pension plan to be considered a "qualified" retirement plan, the plan must satisfy certain minimum vesting requirements. Dividends 21,000 Taxes are heavy on the labour income than on capital income. Accumulated depreciationTrucks 0 Cash balance per books 19,200 Explain how you know. 2060 Deposit in transit 3,000 They are being depreciated with the straight-line method using these facts and estimates. B. Expected salvage value $ 3,000 $ 3,600 Unearned services revenue 0 6.2 Taxes are imposed on the net income of the person. 6.2 Set the carbon dioxide emissions rate to 9.8 gigatons. . Which of the following statements is FALSE? Long-term notes payable 26,000 Use your data to answer the following questions. revising the state constitution, (please help-) ), WR&Z Company, a calendar year taxpayer, paid $6,400,000 for a commercial office, C (Based on Table 7.4 for nonresidential real property, first-year MACRS for the building placed, Maxcom Inc. purchased 15 passenger automobiles for use by its sales force. 57 Wages expense 46,000 The company offers a warranty for the services it sells. How much of these costs can JebSim deduct on its first tax return? Estimated warranty liability 1,950 They are being depreciated with the straight-line method using these facts and estimates. Here is a summary you can refer back to as you complete your experiment. 2090 TRUE Which of the following statements about tax basis is false? The note was signed with First National Bank on December 31, 2021. A) Given a 35% corporate tax rate, for every $1 in new permanent debt that the firm issues, the value of the firm increases by $0.65. A cash basis taxpayer who is in constructive receipt of an income item must recognize that income currently. Prepare a classified balance sheet for December 31, 2021. The first, d (The midquarter convention does not applies because Essco placed only 37% of its depreciable, Kaskar Company, a calendar year taxpayer, paid $3,350,000 for a residential apartment, A (Based on Table 7.3 for residential real property, first-year MACRS for the building placed in service in the 9 th month is $3,000,000 * 1.061%. 3. Ingol elected a, b (Ingol must capitalize its $60,300 organizational costs and is allowed a $1,340 amortization, Powell Inc. was incorporated and began operations on October 1 and adopted a calendar, Puloso Company, a calendar year taxpayer, incurred the following start-up expenditures, c (Puloso can deduct $5,000 of the start-up expenditures and is allowed a $520 amortization, Mann Inc., a calendar year taxpayer, incurred $49,640 start-up expenditures during the, b (Mann can deduct $5,496 of the start-up expenditures this year ($5,000 + [$44,640/180 * 2, Jaboy Inc. was incorporated three year ago. Transfer TaxesTransfer Taxes. Select the step forward button once. justed trial balance as of December 31, 2021. The first, b (The midquarter convention applies because Durna placed more than 40% (43%) of its, Essco Inc., a calendar year taxpayer, made two asset purchases this year. On September 1, 2021, the company is paid $15,900 cash in advance to provide monthly service for an apartment complex for one year. Year Hint: Item b requires two adjustments. Some states don?t collect income tax; B. Unadjusted Trial Balance c. The $15,000 loss is NOT deductible because it results from the sale of a personal use asset. Song Company, a calendar year taxpayer, purchased a total of $2,800,000 tangible personalty in 2018. It is considering reducing the rate to 2% on meals served in restaurants that ban cigarette and cigar smoking and to increase the rate to 5% in restaurants that allow smoking. The primary taxes on consumption are sales tax . The note was signed with First National Bank on December 31, 2021. Record the data in the table below. Bettis, a (Bettis's $40,000 annual amortization deduction and its $100,000 nondeductible impairment. TF.09-063 The FUTA tax for 2021 is based on 6.2 percent of each employee's wages up to $10, 000. 58.2 A budget is defined as a sum of money or other resources set aside for the purpose of carrying specific activities. 2 & 5 & 7 \\ Equipment 51,600 The amount of tax rate on federal level is higher compared to the tax rate on state and local level, so they are definitely not equal. a. 1960 d (The tax deduction for goodwill amortization is a favorable book/tax difference. All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. Interest earned (on bank account) 74 Prepare a classified balance sheet for December 31, 2021. D. Depending on where you live you may pay no state in come taxes. Payroll taxes are imposed by both federal and state government. When the cash was received, the full amount was credited to the Extermination Services Revenue account. Interest revenue 894 A basic premise of federal income tax law is that an expense is deductible unless the Internal Revenue Code specifically prohibits the deduction. Cobly Company, a calendar year taxpayer, made only one asset purchase this year: machinery costing $1,932,500. a. 200 Temperature (Fahrenheit) Correct (reconciled) ending balance of Cash; and the amount of the omitted check. Which of the following statements about amortization deductions is false? Outstanding checks 2,350 Scenario Three: Carbon dioxide emissions increase This year, Deitle capitalized $3,679,000, C (The $186,000 additional capitalized costs for tax purposes were expensed for book purposes, Which of the following statements about the uniform capitalization (unicap) rules is, This year, Zulou Industries capitalized $552,000 indirect costs to inventory for book, C (The additional capitalization of indirect costs under unicap results in a $39,600 unfavorable. true Corporations, LLCs, and partnerships are all taxable entities. Kigin Company spent $240,000 to clean up hazardous waste that had contaminated land, Elcox Inc. spent $2.3 million on a new advertising campaign this year. C.the average tax rate on low-income groups exceeds the tax rate of high-income groups. Trucks 43,000 Long-term notes payable 26,000 Why would it be extremely important for there to be no strikes or labor issues during war time? Allowance for doubtful accounts $ 850 Which of the following is the main function of the executive branch at the state government level? Repairs expense 13,500 2. Miscellaneous expense 1,270 How many months of MACRS depreciation on the machinery is Cobly allowed? Of two kinds: estate tax and donors' taxOf two kinds: estate tax and donors' tax enforcing state laws Prepare the statement of retained earnings (cash dividends during 2021 were $21,000), for 2021. ), Mr. and Mrs. Schulte paid a $750,000 lump-sum price to purchase a business. C. 120 The machinery is 7-year recovery property, and Cobly placed it in service on October 12. Federal tax is the same for all individuals. Useful life (years) 8 5 Useful life (years) 4 Income Tax can be calculated by taking EBIT (Earnings before Interest and Tax) times (1 - Tax Rate) b. $$. Which of the following statements is FALSE? B-Some states don't collect income tax. Set the time step size to 10 years. Tax evasion is a federal crime punishable by imprisonment. False. Sales (of merchandise) 93,826 Prepare journal entries to record the adjustments entered on the six-column table. The MACRS calculation ignores any salvage or residual value of an asset. But the local and state tax is charged differently. Prepare a classified balance sheet for December 31, 2021. Which of the following statements is FALSE? The cost of the, False (Conant can elect to expense $68,300 of the cost ($134,000 - [$595,700 - $530,000]). Taxes at the local, state and federal level are all equal; C. Taxes are collected at the local, state and federal level; D. Some states don?t collect sales tax 1990 Your friend wants to get satellite TV but cant because they have bad credit due Depreciation expense for the two items of equipment used during year 2021. December 31, 2021 Use complete sentences, and be as detailed as possible. A truck is purchased and placed in service on January 1, 2021. Cost of goods sold 49,600 Outstanding checks 2,350 BriarHill cannot elect to expense any of the cost of the property under Section, True (Because BriarHill purchased more than $664,000 of qualifying property, its limited dollar amount is reduced to zero. B. 1980 D-Taxes a the local, state and federal level are all equal, How many hours of higher education are required to become a certified On September 1, 2021, the company is paid $15,900 cash in advance to provide monthly service for an apartment complex for one year. Which of the following statements concerning deductible repair expenses is false? In 2010 the taxes collected by all the level of government accounts 24.8% of the GDP. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) Increase the carbon dioxide emissions by 0.2 and press step forward. Prepare a single-step income statement for 2021. Ferelli Inc. is a calendar year taxpayer. Taxes at the local, state and federal level are all equal. 2090 The rate of tax is different for all the levels. Divergent taxes and subsidies are a form of indirect taxation. The $26,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. 1970 Interest expense 0 ), Conant Company purchased only one item of tangible personalty in 2010. They ask if youll sign up for it and assure you theyll take care of the payments. Post-tax deductions: Garnishments, Roth IRA retirement plans and charitable . which of the following statements about payroll taxes is false? $200,000 for all other taxpayers. It also refers to the money an individual pay to the government in order to provide public services. How would you respond? The way these governments obtain that funding is largely by levying taxes on working adults and diverse business entities. The Federal Unemployment Tax is a shared responsibility tax - the employer pays 50% and the employee pays 50% of this tax. Bank service charges (miscellaneous expense) 26 Estimated warranty liability 1,950 Corporations pay tax on the company tax rate. 57.2 Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $755. 8 B-Some states don't collect income tax. 2080 Divergent taxes and subsidies are a form of indirect taxation. Extermination services revenue 82,000 Utilities expense 9,000 Decrease the carbon dioxide emissions by 0.2 and press step forward. Bug-Off uses a perpetual inventory system. As the tax on local, state and federal levels are not equal. \left[\begin{array}{ll|l} Correct (reconciled) ending balance of Cash; and the amount of the omitted check. Taxes at the local, state and federal level are all equal: This option is incorrect. Mann Inc. negotiated a 36-month lease on office space in a new commercial building. The tax system of the USA is progressive as income rises tax rises. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through g and then completing the adjusted trial balance columns. D. 150 9.8 Totals $ 309,740 $ 309,740 4c. Debit Credit Prepare a single-step income statement for 2021. On September 1, Ferelli signed a 24-month lease, d ($540 amortization of leasehold cost ([$3,240/24 months] * 4 months) + $843 depreciation of, Mr. and Mrs. Carleton founded Carleton Industries in 1993. Which of the following statements about taxes is FALSE? Answer: Cobly Company, a calendar year taxpayer, made only one asset purchase this year: c (The midquarter convention applies because Cobly placed more than 40% (100%) of its, Durna Inc., a calendar year taxpayer, made two asset purchases this year. ), Vane Company, a calendar year taxpayer, incurred the following expenditures in the, a (If the new center represents a new business for Vane, it can deduct $5,000 of the preoperating, Mann Inc. paid $7,250 to a leasing agent to negotiate Mann's 36-month lease for 18,000. Accounts receivable 20,570 Taxes are levied on property, sales, income, estates, gifts. Miscellaneous expense 1,270 Accounts receivable 20,570 Options; A. Carbon Dioxide Emissions Slider: You will use the arrows to change the amounts of carbon emissions. \begin{matrix} \text{Unrestricted Immigration} & \text{ } & \text{ } & \text{ } & \text{ } & \text{Immigration Restriction}\\ \end{matrix} This site is using cookies under cookie policy . ), A firm must capitalize any start-up expenditures of a new business in excess of $5,000 but, The capitalized cost of tangible leasehold improvements is amortizable over the term of, False (The cost is depreciable under MACRS). public accountant? 9.8 Repairs expense 13,500 This site is using cookies under cookie policy . This year, cost. Dividends 21,000 Which of the following statements about taxes is FALSE? Conclusion This year, an independent, b (The goodwill is a self-created asset. Interest payable 0 Reported on the bank statement is a canceled check that the company failed to record. Unadjusted Trial Balance 4a. 9.8 Which of the following statements about taxes is false? Cost of goods sold 49,600 The company offers a warranty for the services it sells. Which of the following statements concerning MACRS depreciation is true? First-year book, Mallow Inc., which has a 35% tax rate, purchased a new business asset. A. The income effect is theoretically stronger for low-income taxpayers than for high-income taxpayers. deciding on state cr Wages expense 46,000 Estimated warranty liability 1,950 Scenario One: Carbon dioxide emissions stay the same JebSim elected a calendar year for tax purposes. Set the time step size to 10 years. Cash balance per bank $ 16,200 c. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. Prepare journal entries to record the adjustments entered on the six-column table. 58 Which of the, Lovely Cosmetics Inc. incurred $785,000 research costs on the development of its formula, A (Lovely's tax basis in the patent is zero. 58 public accountant? Expected salvage value $ 12,400 2000 Prepare a single-step income statement for 2021. A. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. Utilities expense 9,000 2. 59.8 JebSim elected a, d (JebSim can deduct $5,000 of the organizational costs and is allowed a $560 amortization, Ingol Inc. was organized on June 1 and began business on September 13. C. B. 4b. At date of, d (The Schultes must capitalize $150,000 of the cost to amortizable goodwill. Long-term capital gains, dividends, and taxable interest income are all taxed at preferential rates. false Common stock 21,000 57.4 Determine amounts for the following items: b. d. Employers generally must withhold federal income tax from employees' wages. Dorian, a calendar year corporation, purchased $1,568,000 of equipment on May 3. Allowance for doubtful accounts $ 850 4c. Interest payable 0 Determine amounts for the following items: FALSE In certain circumstances a child with very little income may have at least a portion of their income taxed at the trust and estate tax rates. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. These statements reflect yo Sprayer Injector 7.8 Payroll taxes are imposed by both federal and state government. What are 4 examples of deductions? Select step forward until you have the data through the year 2110. Which of the following statements is false? . The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. Which of the following statements is FALSE? Expected salvage value $ 12,400 At least one of these ten statements is false. Goodwill is not, Four years ago, Bettis Inc. paid a $5 million lump-sum price to purchase a business. 2100 Some states dont collect sales tax: This option is incorrect. When the cash was received, the full amount was credited to the Extermination Services Revenue account. A.Taxes are collected at the local, state and federal level B.Some states don't collect income tax C.Some states don't collect sales tax. 2040 The U.S. Tax Court is a special federal court. Bug-Off uses a perpetual inventory system. Overhead expenses are often allocated to the different business activities for accounting purposes. 5.8 Record the data in the table below. Taxes are compulsory levies imposed on individuals by the government. Follow the instructions in the Data section of this report. Accounts payable 5,550 I believe the answer is: Taxes at the local, state, federal levels are all equal. Data Hint: Item b requires two adjustments. Which of the following statements about the computation of cost of goods sold is true? 57.6 The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. C. 9.8 Bad debts expense 0 Unadjusted Trial Balance The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. Extermination services revenue 82,000 e. Our self-concept. Carbon Emissions (gigatons) 2080 This carryover plus the $140,000 cost of qualifying property purchased in 2010 exceed the. d. Humanistic psychology. Taxes are levied to raise revenue for government expenditures. This year, book. In the United States, federal and state governments need money to provide certain services and benefits that nosotros wouldn't otherwise have access to, from Social Security payments to local environmental projects. Sales tax are imposed by most of the states. A. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. Practice using the computer model. 2010 . Financial leverage is calculated as ( Sales -Variable cost ) / ( Earnings before Interest and tax -Interest ) False. The expected cost of providing warranty service is 2.50% of the extermination services revenue of $71,400 for 2021. the USA has a separate federal, state and local government with taxes that are imposed at each level. Debit Credit Depreciation expenseTrucks 0 The first assumption is that the $1 million is the person_"s salary from his or her regular job and that it is the only income. 57.2 Scenario Two: The expense of adapting an existing asset to a new or different use must be capitalized to the cost of the asset for tax purposes. Cost of goods sold 49,600 Property tax are imposed by the local government. Taxes at the local, state and federal level are all equal. Prepare the statement of retained earnings (cash dividends during 2021 were $21,000), for 2021. A federal wealth tax is required by the US Constitution to distribute it to the states according to the population. D-Taxes a the local, state and federal level are all equal 2020 Capital structure determines the level of current assets that is required to maintain the firm's . . Hypothesis 57.4 ), KJD Inc., a calendar year corporation, purchased $923,000 of equipment on November. True False 14. 6.2 The corporation incurred $25,160 of legal and other professional fees attributable to its formation. 1. Totals $ 309,740 $ 309,740 The MACRS depreciation calculation assumes that the building was placed in service on June 15. Depreciation expense for the truck used during year 2021. B) Individual privacy rights make i difficult for governments to identify and search for personal property subject to tax. D. Gowda Inc., a calendar year taxpayer, purchased $1,496,000 of equipment on March 23. d (First year $213,778; second year $366,370). Answer: Warranty expense 0 2030 No warranty expense has been recorded for 2021. $$ The bank reconciliation as of December 31, 2021, includes the following facts. The expected cost of providing warranty service is 2.50% of the extermination services revenue of $71,400 for 2021. The following information in a through h applies to the company at the end of the current year. A. 9.8 Dividends 21,000 2000 Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. First-year book, False (Mallow recorded a $6,230 deferred tax liability. Sprayer Injector Cash $ 19,200 Accumulated depreciationTrucks 0 Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. true The tax law applies uniformly to every commercial transaction by every business entity. 2110 C. Most states have state income tax. Original cost $ 43,000 7.8 You can specify conditions of storing and accessing cookies in your browser. They are being depreciated with the straight-line method using these facts and estimates. . C. Property taxes are also referred to as ad valorem taxes. 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