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On December 31, 2020, XYZ Inc

question 57

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On December 31, 2020, XYZ Inc. has an account payable of $2,000 for operating expenses incurred during the year. These expenses are only tax deductible when paid. XYZ normally pays for its operating expenses one month after they are incurred. Assuming a 20% tax rate, these expenses shall result in:


Definitions:

Cotton Gin

A machine invented by Eli Whitney in 1793 that quickly and efficiently removes cotton seeds from cotton fibers, greatly impacting the cotton industry and slavery in the United States.

Atlantic Slave Trade

The transatlantic trading patterns which were established from the 16th through the 19th centuries, which transported millions of Africans to the Americas as slaves.

Southern Ohio

A region in the United States characterized by its geographical location within the state of Ohio, often noting its distinct cultural and historical features.

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