In 2016,Swan Company Discovered That It Had for the Past

question 50

Multiple Choice

In 2016,Swan Company discovered that it had for the past 10 years capitalized as a production cost certain expenses that are properly classified as administrative expenses.The total amount of the expense for 2015 was $300,000,$60,000 of the item was included in the ending inventory that year and $240,000 was deducted as cost of goods sold.

• A)The company should amend its 2015 tax return and reduce its income by $240,000.
• B)The company should change its accounting method in 2016,with a $60,000 negative § 481 adjustment which decreases its 2016 taxable income.
• C)The company should change its accounting method in 2016,and increase its 2016 income by $60,000,the amount of the positive § 481 adjustment to income.
• D)The company should change its accounting method in 2016 and recognize a $60,000 negative § 481 adjustment that will be spread equally over 2016-19.
• E)None of the above.

Distinguish between primary tastes and their detection.

Comprehend the interaction of taste and other senses in flavor perception.

Understand the size and sensory capabilities of the human skin.

Gain knowledge on the principles of perception and proprioception.

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Definitions:

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