Emma,a Single Taxpayer,obtains Permission to Change from a Calendar Year

question 92

Multiple Choice

Emma,a single taxpayer,obtains permission to change from a calendar year to a fiscal year ending June 30,2017.During the six months ending June 30,2017,she earns $40,000 and has $8,000 of itemized deductions.What is the amount of her annualized income?

• A)$29,975
• B)$64,000
• C)$59,950
• D)$55,900

---

Definitions:

Decreases in Current Assets

The reduction in the value or amount of the assets that a company expects to convert into cash within one year.

Decreases in Current Assets

Reductions in the assets that a company expects to convert into cash, sell, or consume within one year or the operating cycle, whichever is longer.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital to find net cash provided by operating activities.

Net Cash Flows

The difference between a company's cash inflows and outflows within a specific period.