Using the Following Choices, Show the Justification for Each Provision

question 56

Multiple Choice

Using the following choices, show the justification for each provision of the tax law listed.
a. Economic considerations
b. Social considerations
c. Equity considerations
d. Both a. and b.
-A bribe to the local sheriff, although business related, is not deductible.

• A)Deferral of gains from involuntary conversions
• B)Carryforward of net operating losses
• C)"No change" is a possible result
• D)State income tax applied to a visiting nonresident
• E)IRS special agent
• F)Undoing the "piggyback" result
• G)Ideal budget goal as to new tax legislation
• H)Every state that has a general sales tax has one
• I)Imposed by all states and the Federal government
• J)Imposed by some states but not the Federal government
• K)Imposed only by the Federal government
• L)No correct match provided

Understand how to calculate total manufacturing costs.

Understand how to calculate adjusted cost of goods sold.

Learn the calculation of the predetermined overhead rate based on direct labor-hours or machine-hours.

Understand how to allocate underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold accounts.

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Definitions:

Extraordinary Gains

Unusual and infrequent gains recognized in a company's financial statements, separate from regular business operations.

Unrealized Losses

Losses on investments that have not been sold or settled and are still held by the company.

Cost of Goods Sold

Calculates the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Extraordinary Items

Events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence, no longer classified separately in financial statements as of recent accounting standards.