Use the Following Information as of December 31 to Determine

question 60

Multiple Choice

Use the following information as of December 31 to determine equity. Cash…………………… 57,000
Buildings........................ 175,000
Equipment…………….. 206,000
Liabilities……………… $141,000

• A) $57,000.
• B) $141,000.
• C) $297,000.
• D) $438,000.
• E) $579,000.

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Definitions:

Alternative Minimum Tax

A parallel tax system to the regular income tax that ensures that certain taxpayers pay at least a minimum amount of tax.

Corporations

Legal entities that are separate from their owners, capable of owning property, entering contracts, and being taxed.

Subject

A broad term typically referring to the main topic or person being discussed or studied.

Schedule M-1

A form used by corporations in the U.S. to reconcile income reported for tax purposes with income reported for financial reporting purposes.