60 Taxpayers are not entitled to any deductions unless specific provisions in the tax code allow the deductions. December 31, 2021 Sales tax is charged on the sales value. Assume Bug-Offs adjusted balance for Merchandise Inventory matches the year-end physical count. Use complete sentences, and be as detailed as possible. 57 2070 Long-term notes payable 26,000 Equipment 51,600 b. Explain how you know. How would you respond? This site is using cookies under cookie policy . Debit Credit Accounts receivable 20,570 enforcing state laws First-year depreciation for book, Lensa Inc. purchased machinery several years ago for $400,000. Under the cash method, annual taxable income always equals annual net cash flow. Carbon Emissions (gigatons) The following information in a through h applies to the company at the end of the current year. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. 6.2 A budget is defined as a sum of money or other resources set aside for the purpose of carrying specific activities. e. Our self-concept. a. Which of the following capitalized cost is not amortizable for tax purposes? The current carbon emissions are 9.8 gigatons, or 9.8 billion tons. Stanley Inc., a calendar year taxpayer, purchased a building and placed it in service on June 3. Government L levies a 4% excise tax on restaurant meals. Set the time step size to 10 years. Depreciation expenseEquipment 0 3. Useful life (years) 8 5 c. Self-employment tax must be calculated and paid using Schedule SE. Select step forward until you have the data through the year 2110. Its cost is being depreciated with the straight-line method using the following facts and estimates. public accountant? d. 5.8 How much of these costs can JebSim deduct on its first tax return? Only purchased goodwill has an amortizable cost basis.). Taxes are levied on property, sales, income, estates, gifts. The following information in a through h applies to the company at the end of the current year. Useful life (years) 4 Select the step forward button once. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. Bad debts expense 0 The Federal Unemployment Tax is a shared responsibility tax - the employer pays 50% and the employee pays 50% of this tax. Reported on the bank statement is a canceled check that the company failed to record. 9.8 Long-term notes payable 26,000 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. The primary taxes on consumption are sales tax . revising the state constitution, (please help-) D-Taxes a the local, state and federal level are all equal, How many hours of higher education are required to become a certified How would you respond? True False 14. Which of the following statements is true? 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. 59.6 Justification for the correct and incorrect answer: Taxes are collected at the local, state and federal level: This option is incorrect. 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.). At date of, d (The Schultes must capitalize $150,000 of the cost to amortizable goodwill. The MACRS calculation ignores any salvage or residual value of an asset. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $755. December 31, 2021 How would you respond? Environmental clean-up costs are deductible in the year incurred. The cost of the item, False (NLT can elect to expense the entire cost but it can deduct only $77,100 of this expense.). Cost of goods sold 49,600 Set the carbon dioxide emissions rate to 9.8 gigatons. Hint: Item b requires two adjustments. Totals $ 309,740 $ 309,740 A. 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. Equipment 51,600 Correct (reconciled) ending balance of Cash; and the amount of the omitted check. This statement is true, as some states do not collect sales tax. C. The asset, False (MACRS depreciation was $3,123 ([$50,000, An asset's adjusted book basis and adjusted tax basis convey no information about the, BriarHill Inc. purchased four items of tangible personalty in 2010 at a total cost of $1,298,000. Follow the instructions in the Data section of this report. Cost of goods sold 49,600 Sales (of merchandise) 93,826 Answer: A) Governments generally assess property taxes on personalty based on the value of the property as estimated by the government assessor. 57.2 Bug-Off uses a perpetual inventory system. 1990 5.8 $$ 1970 The ending inventory of merchandise is counted and determined to have a cost of $13,900. 5.8 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. 2000 B-Some states don't collect income tax. Colby Company performed professional services for M&E Inc. Assume Bug-Offs adjusted balance for Merchandise Inventory matches the year-end physical count. 9.8 2070 2080 Correct (reconciled) ending balance of Cash; and the amount of the omitted check. Hint: Item b requires two adjustments. December 31, 2021 Merchandise inventory 15,000 The income effect is theoretically stronger for a family's secondary wage earner than for the family's primary wage earner. Accounts payable 5,550 Cash balance per books 19,200 6. This site is using cookies under cookie policy . Which of the following statements about amortization deductions is false? Income Tax can be calculated by taking EBIT. Long-term capital gains, dividends, and taxable interest income are all taxed at preferential rates. Record the data in the table below. Interest earned (on bank account) 74 57.4 Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. 1. 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. Cash $ 19,200 Interest expense 0 Answer: Totals $ 309,740 $ 309,740 ), 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. Prepare a classified balance sheet for December 31, 2021. Procedure Kigin Company spent $240,000 to clean up hazardous waste that had contaminated land used in Kigin's business. Your friend wants to get satellite TV but cant because they have bad credit due Required: . 2020 The expected cost of providing warranty service is 2.50% of the extermination services revenue of $71,400 for 2021. 1. Prepare journal entries to record the adjustments entered on the six-column table. Utilities expense 9,000 Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Warranty expense 0 57.6 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. A)Taxes are collected at the local, state and federal level. 2050 The note was signed with First National Bank on December 31, 2021. All level is charged a different rate of tax. Conclusion 58 which of the following statements about taxes is FALSE? Retained earnings 63,600 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]). 2060 2110 150, Describe two real or made up situations in the workplace when you would need writing skills. Taxes at the local, state and federal level are all equal. 2. Which of the following statements about the cash method of accounting is true? B. Bettis, a (Bettis's $40,000 annual amortization deduction and its $100,000 nondeductible impairment. 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. C. Repairs expense 13,500 No warranty expense has been recorded for 2021. 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. Certain states have no state income tax. The $26,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. 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. 4a. 7.8 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. 60.2 Which of the following statements about taxes is FALSE? 3. answer choices . It depends on the state to state. Allowance for doubtful accounts $ 850 Unadjusted Trial Balance 2110 TRUE The kiddie tax does not apply to children over 24 years old at the end of the tax year. 2080 9.8 Scenario One: Which of the following statements about property taxes are true? Obviously it is the last choice, letter D. Taxes at the local, state and federal level are all equal. 8 1 & 4 & 9 1990 On September 1, 2021, the company is paid $15,900 cash in advance to provide monthly service for an apartment complex for one year. An examination of customers accounts shows that accounts totaling $690 should be written off as uncollectible. Depreciation expenseTrucks 0 Interest payable 0 Extermination services revenue 82,000 Identify the independent (test) variable and the dependent (outcome) variable: Property tax are imposed by the local government. to a history of late payments. a. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. write the system of a linear equation that is represented by the given augmented matrix. Sales tax are imposed by most of the states. The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. Interest revenue 894 You can specify conditions of storing and accessing cookies in your browser, which of the following statements about taxes is FALSE? Some states dont collect sales tax: This option is incorrect. 9.8 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. Year Federal tax is the same for all individuals. In 2010 the taxes collected by all the level of government accounts 24.8% of the GDP. The expected cost of providing warranty service is 2.50% of the extermination services revenue of $71,400 for 2021. Accounts receivable 20,570 Depreciation expenseTrucks 0 Useful life (years) 8 5 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. 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%. Which of the following statements about the income effect of an income tax rate increase is true? 150, Describe two real or made up situations in the workplace when you would need writing skills. At least three of these ten statements are false.4 . The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. A basic premise of federal income tax law is that an expense is deductible unless the. Outstanding checks 2,350 How many months of MACRS depreciation on the machinery is Cobly allowed? Answer: 2110 4a. TRUE false Planning opportunities are created when the tax law applies differentially to alternative business transactions. Which of the following statements about the computation of cost of goods sold is true? 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 Cash balance per bank $ 16,200 Depreciation expense for the two items of equipment used during year 2021. A truck is purchased and placed in service on January 1, 2021. What are 4 examples of deductions? Mann Inc. negotiated a 36-month lease on office space in a new commercial building. 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. For each scenario, record the carbon dioxide emission rate and the global temperature. where as, The Gram Sabha, it is the place where all plans for the work of the gram panchayat are placed . Taxes are heavy on the labour income than on capital income. Which of the following statements are true?1. , iminal cases Miscellaneous expense 1,270 The way these governments obtain that funding is largely by levying taxes on working adults and diverse business entities. Depreciation expenseEquipment 0 Here is a summary you can refer back to as you complete your experiment. The expected cost of providing warranty service is 2.50% of the extermination services revenue of $71,400 for 2021. 58 58.6 Answer: The answer is B: Some states don't collect tax. Debit Credit Bank service charges (miscellaneous expense) 26 2010 A 0.9% Additional Medicare Tax applies to Medicare wages, self-employment income, and railroad retirement (RRTA) compensation that exceed the following threshold amounts based on filing status: $250,000 for married filing jointly; $125,000 for married filing separately; and. 57.2 Cash balance per books 19,200 Accounts payable 5,550 Some states dont collect income tax: This option is incorrect. Bug-Off uses a perpetual inventory system. Retained earnings 63,600 d. Humanistic psychology. A tax structure is called progressive whenA.the average tax rate decreases if incomedecreases. 58 2030 Determine amounts for the following items: 9.8 6.2 2 & 5 & 7 \\ 200 Expected salvage value $ 12,400 All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. Which statement about taxes on personal property is false? 57.4 Property tax are imposed by the local government. . $200,000 for all other taxpayers. TF.09-071 In order for a pension plan to be considered a "qualified" retirement plan, the plan must satisfy certain minimum vesting requirements. This site is using cookies under cookie policy . Bad debts expense 0 Depreciation expense for the truck used during year 2021. 1960 a. A) Taxes are collected at the local, state, and federal level. For average people, the amount of tax payment would be directly taken from their salary payment by the companies where they work. Rent expense 20,000 ), NLT Inc. purchased only one item of tangible personalty in 2010. The bank reconciliation as of December 31, 2021, includes the following facts. 57 Scenario Three: First-year book, Mallow Inc., which has a 35% tax rate, purchased a new business asset. Data In an inflationary economy, the use of FIFO maximizes the cost of goods sold and minimizes the cost of ending inventory. Rent expense 20,000 c. Self-transcendence. Reported on the bank statement is a canceled check that the company failed to record. Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable) and FICA. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) 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. 58 A. Taxes at the local, state and federal level are all equal: This option is incorrect. 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. B) All unmarried taxpayers must file as a single taxpayer. Sprayer Injector C-Some states don't collect sales tax. Was your hypothesis supported by your results or not? Budget authorization includes the formulation of an appropriation bill to be forwarded to the president approval and signature. Estimated warranty liability 1,950 1960 Expected salvage value $ 3,000 $ 3,600 Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. B. Divergent taxes and subsidies are a form of indirect taxation. 2050 Your friend wants to get satellite TV but cant because they have bad credit due Depreciation expenseTrucks 0 A truck is purchased and placed in service on January 1, 2021. Overhead expenses are often allocated to the different business activities for accounting purposes. Which of the following statements concerning deductible repair expenses is false? Wages expense 46,000 But the local and state tax is charged differently. A.Taxes are collected at the local, state and federal level, How many hours of higher education are required to become a certified Research and experimental expenditures are deductible unless they result in the, Repair costs incurred to keep a tangible asset in good working order must be capitalized to, Cosmo Inc. paid $15,000 plus $825 sales tax plus a $200 delivery charge for a new, False (Sales tax must be capitalized as part of the cost of the asset. $$ \end{array}\right] The note was signed with First National Bank on December 31, 2021. why were taxes an ongoing source of conflict for the american colonists. Income tax imposed at the federal and state level. 9.8 The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. 4a. Divergent taxes and subsidies are a form of indirect taxation. A peak experience. Financial leverage is calculated as ( Sales -Variable cost ) / ( Earnings before Interest and tax -Interest ) False. These statements reflect yo Summarize how the carbon emissions affected the atmospheric temperature in each of the three scenarios: The tax system of the USA is progressive as income rises tax rises. TransfeWhich of the following statements is false? Reported on the bank statement is a canceled check that the company failed to record. Capital structure determines the level of current assets that is required to maintain the firm's . Retained earnings 63,600 2040 You can specify conditions of storing and accessing cookies in your browser. D. Which of the following statements regarding tax deductions is false? Unadjusted Trial Balance Accounts payable 5,550 2000 9.8 Interest earned (on bank account) 74 Extermination services revenue 82,000 ), Conant Company purchased only one item of tangible personalty in 2010. ), Pettit Company purchased heavy equipment by giving the seller a $30,000 cash down. Ferelli Inc. is a calendar year taxpayer. Which of the following statements is true? Dorian, a calendar year corporation, purchased $1,568,000 of equipment on May 3. Sprayer Injector 2050 All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. The federal margins or tax rates vary from 10% to 37% of the taxable income. Dividends 21,000 The company offers a warranty for the services it sells. All states have a flat state tax. Required: Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. Taxable property includes both the value of the land and any structures affixed to it. When the cash was received, the full amount was credited to the Extermination Services Revenue account. representing the state in the U.S. Congress Cash balance per bank $ 16,200 b. 2090 A. An examination of customers accounts shows that accounts totaling $690 should be written off as uncollectible. 190 The $15,000 loss is classified as a casualty loss due to the decline in fair market value of the home. The ending inventory of merchandise is counted and determined to have a cost of $13,900. The company began providing the services in September. 200 Your friend wants to get satellite TV but cant because they have bad credit due Following is the company's unad A cash basis taxpayer who is in constructive receipt of an income item must recognize that income currently. Interest revenue 894 8 4.2 Cash $ 19,200 Taxes at the local, state and federal level are all equal. Useful life (years) 4 Accumulated depreciationTrucks 0 Which of the following statements about taxes is FALSE? 2080 6.2 Scenario Two: Unearned services revenue 0 A) Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable) This, D&R Company, a calendar year corporation, purchased $1,116,000 of equipment on. Income Tax can be calculated by taking EBIT (Earnings before Interest and Tax) times (1 - Tax Rate) b. US imposes tariffs on imported goods. Deposit in transit 3,000 Accumulated depreciationTrucks 0 Record the data in the table below. 150, Describe two real or made up situations in the workplace when you would need writing skills. 2000 Its cost is being depreciated with the straight-line method using the following facts and estimates. which of the following statements about payroll taxes is false? 3. The cost of the, False (Conant can elect to expense $68,300 of the cost ($134,000 - [$595,700 - $530,000]). Which of the following statements about the depletion deduction is false? Unearned services revenue 0 Decrease carbon dioxide emissions by 0.2 each step forward for the rest of scenario two. Depreciation expenseEquipment 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. Original cost $ 29,200 $ 22,400 Transfer tax isr tax is a. Options; A. 59.2 Which of the following statements is false? All costs of servicing warranties in 2021 were properly debited to the Estimated Warranty Liability account. 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 $15,000 loss is an ordinary loss that can be used to offset ordinary income. How much of this cost can Song elect to expense under Section 179? 4.2 59.8 Maintain carbon dioxide emissions at 9.8 for the rest of scenario one. Imposed upon gratuitous transfer of propertyImposed upon gratuitous transfer of property b. The bank reconciliation as of December 31, 2021, includes the following facts. No warranty expense has been recorded for 2021. B) Individual privacy rights make i difficult for governments to identify and search for personal property subject to tax. Sprayer Injector B. Interest expense 0 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 4c. Each of the 12 regional circuits has a court of appeals. Hextone Inc., which has a 35% tax rate, purchased a new business asset. 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 Prepare a classified balance sheet for December 31, 2021. Trucks 43,000 Start Over: Use this to reset the model if needed. D. Depending on where you live you may pay no state in come taxes. Unconditional positive regard. D. 150 A. On September 1, 2021, the company is paid $15,900 cash in advance to provide monthly service for an apartment complex for one year. Accumulated depreciationEquipment 14,070 They ask if youll sign up for it and assure you theyll take care of the payments. This statement is false. Which of the following statements about taxes is false? Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $755. The rate change is intended to affect social behavior. Debit Credit Miscellaneous expense 1,270 The company offers a warranty for the services it sells. The bank reconciliation as of December 31, 2021, includes the following facts. The company began providing the services in September. TF.09-063 The FUTA tax for 2021 is based on 6.2 percent of each employee's wages up to $10, 000. This statement is true, as the states do not collect income tax. A. Determine amounts for the following items: Temperature (Fahrenheit) C-Some states don't collect sales tax. C.the average tax rate on low-income groups exceeds the tax rate of high-income groups. At least one of these ten statements is false. Property tax rates are determined annually based on budgetary needs of the local jurisdiction. Taxes are compulsory levies imposed on individuals by the government. Bank service charges (miscellaneous expense) 26 ), On April 20, Reid Inc., a calendar year taxpayer, paid a $750,000 lump-sum price to, b (([$150,000/180 months] * 9 months) = $7,500 amortization deduction. Dividends 21,000 Driller Inc. has $498,200 of unrecovered capitalized costs in Well #83. Estimated warranty liability 1,950 ), 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. Practice using the computer model. Unearned services revenue 0 true Corporations, LLCs, and partnerships are all taxable entities. justed trial balance as of December 31, 2021. Repairs expense 13,500 Temperature (Fahrenheit) Why would it be extremely important for there to be no strikes or labor issues during war time? Song Company, a calendar year taxpayer, purchased a total of $2,800,000 tangible personalty in 2018. Regarding the federal court system, which of the following statements is false? Increase the carbon dioxide emissions by 0.2 and press step forward. Warranty expense 0 An examination of customers accounts shows that accounts totaling $690 should be written off as uncollectible. Which of the following statements concerning business goodwill is false? On September 1, 2021, the company is paid $15,900 cash in advance to provide monthly service for an apartment complex for one year. They are being depreciated with the straight-line method using these facts and estimates. 60.4 Cash balance per bank $ 16,200 False. Taxes are levied to raise revenue for government expenditures. Property taxes are also referred to as ad valorem taxes. Equipment 51,600 Based on your knowledge of how the greenhouse effect works, why does the level of carbon dioxide affect the global temperature? Set the carbon dioxide emissions rate to 9.8 gigatons. Pre-tax deductions: Medical and dental benefits, 401 (k) retirement plans (for federal and most state income taxes) and group-term life insurance. The company offers a warranty for the services it sells. This year, cost. Name three sources of atmospheric carbon dioxide. Year 9.8 Totals $ 309,740 $ 309,740 B-Some states don't collect income tax. Payroll taxes are imposed by both federal and state government. Of two kinds: estate tax and donors' taxOf two kinds: estate tax and donors' tax Continue stepping forward once, increasing the carbon emissions each time, until you reach 2110. The machinery is 7-year recovery property, and Cobly placed it in service on October 12. Payroll taxes are imposed by both federal and state government. 4c. A. Kassim's book basis and tax basis in the asset is $275,000. Levied, property, sales, income, diverging taxes, indirect taxation, progressive. The individual pays tax on the tax rate of the individual. justed trial balance as of December 31, 2021. Prepare the statement of retained earnings (cash dividends during 2021 were $21,000), for 2021. B. 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. Tax evasion is a federal crime punishable by imprisonment. Which of the following statements concerning MACRS depreciation is true? 2090 Assume Bug-Offs adjusted balance for Merchandise Inventory matches the year-end physical count. Outstanding checks 2,350 Deposit in transit 3,000 Utilities expense 9,000 Which of the following statements is FALSE? Prepare a single-step income statement for 2021. 57.6 $$. Gowda Inc., a calendar year taxpayer, purchased $1,496,000 of equipment on March 23. d (First year $213,778; second year $366,370). Which of the following. Following is the company's unad Firms are allowed to deduct percentage depletion with respect to a productive asset even if the adjusted tax basis of the asset is zero. Cash balance per books 19,200 Taxes are imposed on the net income of the person. Prepare a single-step income statement for 2021. JebSim Inc. was organized on June 1 and began business on August 18. Merchandise inventory 15,000 4b. They ask if youll sign up for it and assure you theyll take care of the payments. Which of the following statements about taxes is FALSE? A) A taxpayer who is married for less than half the year may elect to use the single rates for that year. Interest payable 0 . Original cost $ 43,000 The $26,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Carl S Warren, James M Reeve, Jonathan E. Duchac, Complete the sentence using each term once. Long-term notes payable 26,000 Useful life (years) 8 5 Culturally defined rights and obligations attached to statuses are known as ________, Use the table to show how the effects of unrestricted immigration contributed to immigration restrictions. C) A child who is considered a dependent of another taxpayer and who earns income is required to file as a single taxpayer. Transfer TaxesTransfer Taxes. 4c. D. 150 Bad debts expense 0 Complete all three scenarios to find out what happens to the global temperature if these emissions stay the same, decrease, or increase over the next century. Assume that the variables are $x_1$ and $x_2$. Original cost $ 43,000 Explain how macronutrients are different than micronutrients, sadie was prescribed betaxolol ophthalmic drops by her ophthalmologist to treat. Deductions can be labeled as deductions above the line or deductions below the line. 1990 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. The option D is correct. The company began providing the services in September. ), Richland Company purchased an asset in 2006 for $50,000 and sold it in 2009. \left[\begin{array}{ll|l} Merchandise inventory 15,000 Interest payable 0 . Unadjusted Trial Balance 1970 Continue stepping forward once, decreasing the carbon emissions each time, until you reach 2110. 4b. 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. Set the time step size to 10 years. Not all types of income are taxes: while earned income and passive income are taxes, portfolio income is not taxed. Goodwill is not, Four years ago, Bettis Inc. paid a $5 million lump-sum price to purchase a business. . Which of the following statements about taxes is FALSE? 2.0 points), Imagine youre renting an apartment with a friend after high school. Sales (of merchandise) 93,826 The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. Carbon Emissions (gigatons) false true The tax law applies uniformly to every commercial transaction by every business entity. Which of the following statements about the cash method of accounting is false? Mandatory deductions: Federal and state income tax, FICA taxes, and wage garnishments. C. The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. 7.8 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. Following is the company's unad 1. 2040 58 57 Interest expense 0 D-Taxes a the local, state and federal level are all equal Wages expense 46,000 Required: Correct (reconciled) ending balance of Cash; and the amount of the omitted check. Warranty expense 0 MACRS depreciation for buildings is based on the straight-line method. Prepare a classified balance sheet for December 31, 2021. Set the carbon dioxide emissions rate to 9.8 gigatons. A-Taxes are collected a the local, state and federal level. 2.0 points), Imagine youre renting an apartment with a friend after high school. Allowance for doubtful accounts $ 850 Which of the following is the main function of the executive branch at the state government level? Outstanding checks 2,350 (1-2 sentences. 58 The adjusted 2021 ending balances of the Interest Expense and the Interest Payable accounts. 1980 Selkie Inc. paid a $2 million lump sum to purchase a business. Corporations pay tax on the company tax rate. They are being depreciated with the straight-line method using these facts and estimates. You can specify conditions of storing and accessing cookies in your browser. 9.8 2090 B) The firm's marginal tax rate may fluctuate due to changes in the tax code and changes in the firm's income bracket. 1. Set the time step size to 10 years. 1970 Which of the following statements is FALSE? Expected salvage value $ 3,000 $ 3,600 This site is using cookies under cookie policy . Scenario One: Carbon dioxide emissions stay the same Allowance for doubtful accounts $ 850 Estates and gift taxes are applied by federal and some of the state government. taxes, federal, state, local level, individuals, corporations, amount of payment, rate of tax, income tax, sales tax, different tax rate. a. 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. Interest revenue 894 7.8 This carryover plus the $140,000 cost of qualifying property purchased in 2010 exceed the. 9.8 Prepare the statement of retained earnings (cash dividends during 2021 were $21,000), for 2021. Select each marker to see what it does. Its cost is being depreciated with the straight-line method using the following facts and estimates. A basic premise of federal income tax law is that an expense is deductible unless the Internal Revenue Code specifically prohibits the deduction. Expected salvage value $ 12,400 The MACRS calculation is based on the estimated useful life of the depreciable asset. It also refers to the money an individual pay to the government in order to provide public services. The MACRS depreciation calculation assumes that the building was placed in service on June 15. They are being depreciated with the straight-line method using these facts and estimates. False (The first $5,000 of organizational costs are deductible. The rate of tax is different for all the levels. Which of the following statements about taxes is FALSE? 2100 The taxpayers fall into seven categories depending on the taxable income-10%, 12%, 20%, 24%, 32%, 35% to 37%. Which of the following statements about MACRS is false? to a history of late payments. the USA has a separate federal, state and local government with taxes that are imposed at each level. Depreciation expense for the truck used during year 2021. Useful life (years) 4 Trucks 43,000 At least two of these ten statements are false.3. They ask if youll sign up for it and assure you theyll take care of the payments. The adjusted 2021 ending balances of the Warranty Expense and the Estimated Warranty Liability accounts. Scenario Three: Carbon dioxide emissions increase I believe the answer is: Taxes at the local, state, federal levels are all equal. Descriptions: Which of the following statements about taxes is false? 2020 Record the data in the table below. 2020 c. The $15,000 loss is NOT deductible because it results from the sale of a personal use asset. D.Taxes at the local, state and federal level are all equal Kassim Company purchased an asset by paying $35,000 cash and giving the seller its 3-year note for $240,000. Complete your hypothesis (above). In its first year, Jaboy capitalized $72,000, a (Jaboy's current year amortization deduction is $4,800 ($72,000/180 months * 12 months). Taxes are imposed on the net income of the person. Common stock 21,000 public accountant? 4b. Post-tax deductions: Garnishments, Roth IRA retirement plans and charitable . Accumulated depreciationEquipment 14,070 Carbon Dioxide Emissions Slider: You will use the arrows to change the amounts of carbon emissions. 60.8 2040 C. The Supreme Court hears most of the cases brought to it on appeal. In exchange for the, Inger Associates, which manufactures plastic containers, recently sold 12,000 containers, Moses Inc. purchased office furniture for $8,200 plus $492 sales tax and a $150 delivery, Kassim Company purchased an asset by paying $35,000 cash and giving the seller its 3-, Deitle Inc. manufactures small appliances. ), 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). In the united states of America, the state, local and federal levels charged tax differently on the individual. Poole Company made a $100,000 cash expenditure this year. Carl Rogers fell that we are our best selves when we fell accepted for who we are. Dividends 21,000 2060 In this section, please include the if/then statements you developed during your lab activity. Wages expense 46,000 2060 A-Taxes are collected a the local, state and federal level. Depreciation expense for the two items of equipment used during year 2021. 1980 A. 58 This additional tax is used to help . Increase carbon dioxide emissions by 0.2 for each step forward for the rest of scenario three. Repairs expense 13,500 Hint: Item b requires two adjustments. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. Original cost $ 43,000 ), 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. Temperature (Fahrenheit) (1-2 sentences. ur predicted outcomes for the experiment. A. Prepare a single-step income statement for 2021. ), KJD Inc., a calendar year corporation, purchased $923,000 of equipment on November. Cost of goods sold 49,600 1980 C. 120 The corporation incurred $25,160 of legal and other professional fees attributable to its formation. Deposit in transit 3,000 Interest earned (on bank account) 74 Select the step forward button once. JebSim Inc. was organized on June 1 and began business on August 18. The federal margins or tax rates vary from 10% to 37% of the taxable income. Accumulated depreciationTrucks 0 True False 13. What did he call this accepting attitude? When the cash was received, the full amount was credited to the Extermination Services Revenue account. The $26,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. D (Businesses cannot use LIFO for tax purposes unless they also use LIFO to prepare their, Uqua Inc. purchased a depreciable asset for $189,000. Explain the difference between the greenhouse effect and global warming. D. Federal court districts never cross state lines. B. True This year, Nigle Inc.'s auditors required the corporation to write down the $1 million book. 2. B.high-income groups pay more taxes absolutely than do low-income groups. 190 Which of the following statements is true? Decrease the carbon dioxide emissions by 0.2 and press step forward. Sales tax are imposed by most of the states. The after-tax cost of an expenditure is minimized when the expenditure is deductible in the current year. Estimated warranty liability 1,950 . B. 4.2 1960 2070 Bank service charges (miscellaneous expense) 26 57.6 The following information in a through h applies to the company at the end of the current year. 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. Cobly Company, a calendar year taxpayer, made only one asset purchase this year: machinery costing $1,932,500. Original cost $ 29,200 $ 22,400 b. 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. Tax is the amount of payment an individual and corporation pay to the government from its income. Bug-Off uses a perpetual inventory system. This year, an independent, b (The goodwill is a self-created asset. Prepare the statement of retained earnings (cash dividends during 2021 were $21,000), for 2021. Use your data to answer the following questions. public accountant? Which of the following statements is FALSE? The data for the years 19602010 are already filled out for you. The ending inventory of merchandise is counted and determined to have a cost of $13,900. 9.8 Scenario Two: Carbon dioxide emissions decrease Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2019. 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 is true? Accounts receivable 20,570 \begin{matrix} \text{Unrestricted Immigration} & \text{ } & \text{ } & \text{ } & \text{ } & \text{Immigration Restriction}\\ \end{matrix} 2. Common stock 21,000 Hypothesis 2030 Cash $ 19,200 (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) The note was signed with First National Bank on December 31, 2021. A. d (The tax deduction for goodwill amortization is a favorable book/tax difference. Accumulated depreciationEquipment 14,070 Depreciation expense for the two items of equipment used during year 2021. 57.4 58.2 Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. When the cash was received, the full amount was credited to the Extermination Services Revenue account. This statement is incorrect. A truck is purchased and placed in service on January 1, 2021. Prepare journal entries to record the adjustments entered on the six-column table. B. Purchased goodwill is amortizable both for book and tax accounting purposes. Depreciation expense for the truck used during year 2021. C. 120 2010 a. 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. Determine amounts for the following items: 190 b. 2.0 points), Imagine youre renting an apartment with a friend after high school. 200 8 A federal wealth tax is required by the US Constitution to distribute it to the states according to the population. 2030 Trucks 43,000 The adjusted 2021 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. Some states don?t collect income tax; B. You can specify conditions of storing and accessing cookies in your browser, States dontcollect income tax the government does so B. JebSim elected a calendar year for tax purposes. Which of the following statements about tax basis is false? d. Employers generally must withhold federal income tax from employees' wages. How will this transaction be treated for tax purposes? The income effect is theoretically stronger for low-income taxpayers than for high-income taxpayers. Learn more about bond tax-free interest. Earnings per share is of great significance to an operator on the stock exchange buying and selling the shares. ), W&F Company, a calendar year taxpayer, purchased a total of $603,700 tangible, c (W&F can elect to expense $60,300 of the cost ($134,000 limited dollar amount - [$603,700 - $530,000])), Broadas., a calendar year taxpayer, purchased a total of $128,300 tangible personalty in, Szabi Inc., a calendar year taxpayer, purchased two assets during 2010: a machine costing, a (Szabi should expense the cost of the 7-year recovery property before the cost of the 5-year, In 2009, Rydin Company purchased one asset costing $48,400 and elected to expense the, b (Rydin's carryover expense from 2009 is $27,400 ($48,400 expense - $21,000 deduction). to a history of late payments. Which of the following statements is FALSE? C. Expected salvage value $ 3,000 $ 3,600 Expected salvage value $ 12,400 As the tax on local, state and federal levels are not equal. Original cost $ 29,200 $ 22,400 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. . $$ False. In other words, positive statements establish a 'cause and effect' relationship between two phenomenon. 57.2 This year, book. Rent expense 20,000 There are some types of incomes that are not taxed and are taxed, for instance, passive and earned income are taxed while incomes like portfolio income are not taxed. (1-2 sentences. 2100 1. deciding on state cr First-year book, False (Mallow recorded a $6,230 deferred tax liability. How many hours of higher education are required to become a certified This statement can not become false. Extermination services revenue 82,000 Year D. 150 The U.S. Tax Court is a special federal court. 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? (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) C. 120 Utilities expense 9,000 2. 2100 3. No warranty expense has been recorded for 2021. Which of the following is a false statement? Which of the following statements about taxes is false? This statement is true, as the government charged taxes on all level state, local and federal levels. Prepare journal entries to record the adjustments entered on the six-column table. Sales (of merchandise) 93,826 9.8 9.8 A corporation that incurs $28,500 organization costs must capitalize the costs and amortize them over 180 months. ), Mr. and Mrs. Schulte paid a $750,000 lump-sum price to purchase a business. Time Step Size: This will allow you to view the data every 5 years or every 10 years. ), 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. Carbon Emissions (gigatons) C. Most states have state income tax. justed trial balance as of December 31, 2021. 2010 Miscellaneous expense 1,270 Taxes are used to construct and maintain good roads, build school, provide good sewage system, provide defence, electricity and so on. c. False The after-tax cost of an expenditure is minimized when the expenditure is deductible in the current year. 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