Solve the Problem. -A College Student Earned $5,700 During Summer Vacation Working as Vacation

question 160

Multiple Choice

Solve the problem.
-A college student earned $5,700 during summer vacation working as a waiter in a popular restaurant. Thestudent invested part of the money at 7% and the rest at 6%. If the student received a total of $378 ininterest at the end of the year, how much was invested at 7%?

• A)$3,600
• B)$2,100
• C)$2,850
• D)$950

---

Definitions:

Interperiod Tax Allocation

The process of allocating income taxes over different accounting periods due to temporary differences between financial accounting and tax reporting.

Intraperiod Tax Allocation

The process of allocating income taxes between different parts of the financial statements within the same fiscal period.

FASB Statement No.109

A standard issued by the Financial Accounting Standards Board relating to income tax accounting.

Installment Method

A revenue recognition method that allows income to be realized at the point of sale and subsequently as payments are received.