The Following Information Is for Bright Eyes Auto Supplies: Bright

question 15

Multiple Choice

The following information is for Bright Eyes Auto Supplies: Bright Eyes Auto Supplies
Balance Sheet
December 31, 2015
$\begin{array}{lrlr}\text { Cash } & \$ 40,000 & \text { Accounts Payable } & \$ 130,000 \\\text { Prepaid Insurance } & 80,000 & \text { Salaries and Wages Payable } & 50,000 \\\text { Accounts Receivable } & 100,000 & \text { Mortgage Payable } & 150,000 \\\text { Inventory } & 140,000 & \text { Total Liabilities } & 330,000\\\text { Land Held for Investment } & 180,000 \\\text { Land } & 250,000\\\text { Buildings } \$ 200,000 && \text { Common Stock } \$ 400,000\\\text { Less Accumulated } && \text { Retained Earnings } 340,000&740,000 \\\text { Depreciation } (60,000) & 140,000\\\text { Trademark } & 140,000 & \text { Total Liabilities and }\\\text { Total Assets }&\$1,070,000&\text { Stockholders' Equity }&\$1,070,000\end{array}$ The total dollar amount of assets to be classified as current assets is

• A) $140,000.
• B) $220,000.
• C) $360,000.
• D) $500,000.

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Definitions:

Extension to File

An allowance by the IRS granting taxpayers additional time to file their income tax returns, beyond the April 15 deadline, without penalty for late filing.

Extension of Time

An allowance by the IRS giving taxpayers extra time to file their tax returns beyond the original due date.

Married Filing Separately

A tax filing status that allows a married individual to file their taxes separately from their spouse.

Legally Married

The status of individuals who are united in a legal marriage recognized by their jurisdiction, affecting tax filing status.