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The Following Individuals Maintained Offices in Their Home: (1) Dr

question 203

Multiple Choice

The following individuals maintained offices in their home: (1) Dr. Austin is a self- employed surgeon who performs surgery at four hospitals. He uses his home for administrative duties as he does not have an office in any of the hospitals.
(2) June, who is a self- employed plumber, earns her living in her customer's homes. She maintains an office at where she bills clients and does other paperwork related to her plumbing business.
(3) Cassie is an employed as a sales representative of Montgomery Products, an out- of- town company which not have a local office. She uses an extra room in her home to plan her sales calls, write up orders and store inven The use of this room in her home is a required part of the job., and this work is the only use of this room.
Who is entitled to a home office deduction?

Determine the carrying amount of long-term liabilities such as bonds and notes payable.

Analyze the financial implications of bond amortization methods on interest expense.

Understand the concepts related to bond issuance at a discount or at a premium.

Comprehend the accounting entries related to debt repayment and retirement.

Definitions:

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-level model, ranging from basic physiological needs to self-actualization.

ERG Theory

A motivational theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Two-Factor Theory

A psychological theory proposed by Herzberg that suggests there are two sets of factors affecting people's work motivation and satisfaction: hygiene factors and motivators.

Acquired Needs Theory

A motivational theory that suggests individuals are driven by their desire to fulfill specific needs acquired over time, such as achievement, affiliation, and power.