Alain Mire Files a Single Tax Return and Has Adjusted

question 63

Multiple Choice

Alain Mire files a single tax return and has adjusted gross income of $304,000. His net investment income is $53,000. What is the additional tax that Alain will pay on his net investment income for the year?

• A) Zero
• B) $2,014
• C) $3,952
• D) $1,938
• E) None of these

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Definitions:

Perpetual Inventory Method

An inventory system that updates inventory accounts after each purchase or sale on a continuous basis.

General Journal Entries

The recordation of financial transactions in the general journal in chronological order, which are then posted to individual accounts in the general ledger.

Accounts Payable

A financial record that reflects a firm's responsibility to clear a short-term obligation to its creditors or suppliers.

Subsidiary Ledger

A detailed ledger that contains all the transaction details of a specific account, which then summarizes into a general ledger.