Randall Company Uses the Calendar Year and the Cash Method

question 54

Essay

Randall Company uses the calendar year and the cash method of accounting. On December 31, 2016, Randall made the following cash payments. To what extent can Randall deduct the payments in 2016?
a. $50,000 for a two-year warehouse lease beginning on March 1, 2017.
b. $95,000 of inventory items held for sale to customers.
c. $1,800 to purchase a new refrigerator for the employees' lounge. The refrigerator was delivered on February 1, 2017.
d. $5,000 compensation to a consultant who spent two weeks in January 2017 analyzing Randall's payroll system.
e. $22,000 property tax to the local government for the first six months of 2017.

Understand the concept and implications of negative components in investment.

Familiarize with types of business ownership.

Know the corporate income tax rate for large corporations.

Calculate gross investment given net investment, depreciation, and indirect business taxes.

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Definitions:

Chauvinism

An irrational belief in the superiority or dominance of one's own group or gender, often manifesting as prejudice or bias.

Traditional Gender Roles

Socially and culturally defined prescriptions and beliefs about the behavior and emotions of men and women.

Gender Roles

Societal norms dictating the types of behaviors which are generally considered acceptable, appropriate, or desirable for people based on their actual or perceived sex or gender.

Cultural Stereotypes

Oversimplified and generalized views held about a particular group of people or culture, often without personal experience or knowledge.