La More Company Had the Following Transactions During 2022:

question 75

Multiple Choice

La More Company had the following transactions during 2022: Sales of $9000 on account
Collected $4000 for services to be performed in 2023
Paid $3750 cash in salaries for 2017
Purchased airline tickets for $500 in December for a trip to take place in 2023
What is La More's 2022 net income using accrual accounting?

• A)$5750
• B)$9750
• C)$9250
• D)$5250

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Definitions:

Schedule M-1

A form used by corporations filing U.S. federal corporate income taxes to reconcile financial statement income with tax return income.

Total Receipts

The total amount of money received by a business during a specific period, including sales, income, donations, and other forms of revenue.

Subchapter S Corporation

A type of corporation that meets specific Internal Revenue Code requirements and passes income, losses, deductions, and credits to its shareholders for federal tax purposes.

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity, leading to potential double taxation on earnings.