Which of the Following Payments Is a Tax

question 19

Multiple Choice

Which of the following payments is a tax?
I.Artis paid the IRS a penalty of $475 (above his $11,184 income tax balance due) because he had significantly underpaid his estimated income tax.
II.Lindsey paid $135 to the State of Indiana to renew her CPA license.
III.Carrie paid a $3.50 toll to cross the Mississippi River.
IV.Darnell paid $950 to the County Treasurer's Office for an assessment on his business equipment.

• A)Only statement IV is correct.
• B)Only statement III is correct.
• C)Statements II and IV are correct.
• D)Statements I, II, and III are correct.
• E)Statements I, II, III, and IV are correct.

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Definitions:

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single entity.

Amortize

To amortize means to gradually reduce or write off the initial cost of an asset over a period, typically through regular payments covering interest and principal.

Non-Controlling Interest

A share of equity ownership in a subsidiary not attributable to the parent company, representing the portion of the subsidiary's net assets and net income not owned by the parent.