In January 2014, Cain Company Paid $200,000 in Property Taxes

question 9

Multiple Choice

In January 2014, Cain Company paid $200,000 in property taxes on its plant for the calendar year 2014.Also in January 2014, Cain estimated that its year-end bonuses to executives for 2014 would be $800,000.What is the amount of expenses related to these two items that should be reflected in Cain's quarterly income statement for the three months ended June 30, 2014 (second quarter) ?

• A)$ -0-
• B)$250,000
• C)$ 50,000
• D)$200,000

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Definitions:

Established Quality Standards

Set criteria or benchmarks that define the specifications, technical details, and performance measures products or services must meet to ensure they are fit for purpose and meet customer expectations.

Constant Improvements

The ongoing effort to enhance products, services, or processes through incremental changes or innovations.