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Sara Is Filing as Head of Household and Has 2017

question 78

Multiple Choice

Sara is filing as head of household and has 2017 taxable income of $57,000 which includes $3,000 of net long-tem capital gain. The net long-term capital gain is made up of $1,000 25% gain and $2,000 0%/15%/20% gain. What is the tax on her taxable income using the alternative tax method? Note: Use the tax rate schedule rather than the tax table.

Understand the treatment and impact of accounts receivable and payable within budgeting.

Understand the basic principles of business valuation and the role of cash flows.

Recognize the importance of future financial conditions in lending decisions.

Acknowledge the necessity to predict future economic conditions in financial analysis.

Definitions:

IFRS Accounting

The practice of maintaining financial records and reporting financial results in accordance with the International Financial Reporting Standards.

U.S.GAAP

U.S.GAAP (United States Generally Accepted Accounting Principles) comprises a broad set of accounting standards developed by the Financial Accounting Standards Board (FASB) used for preparing financial statements in the U.S.

Contingencies

Potential liabilities or gains that may occur in the future, dependent on the outcome of a specific event.

Federal Income Tax

Federal Income Tax is the tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.