Jenkins Company Began Business in June When Stockholders Invested $85,000

question 54

Multiple Choice

Jenkins Company began business in June when stockholders invested $85,000 in the business,which in turn issued its common stock to them.Jenkins Company then purchased a building for $43,000 cash and inventory for $24,000 cash,performed services for clients for $15,000 cash,purchased supplies for $7,000 cash,and paid utilities of $4,000 cash.What is the amount of cash at the end of June?

• A)$18,000
• B)$22,000
• C)$33,000
• D)$46,000

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Definitions:

Foreign Taxes

Taxes paid to a foreign government on income earned outside of the taxpayer's country of residence.

Schedule A

An itemized deductions form where taxpayers list eligible expenses to reduce their taxable income, including medical, taxes paid, interest, gifts to charity, and casualty losses.

Foreign Tax Credit

A permanent tax credit for income taxes handed over to an overseas authority as a consequence of foreign income tax deductions.

Appreciated Capital Gain Property

Property that has increased in value over time, where the capital gain realized from its sale is taxed at a possibly reduced rate depending on the duration of ownership.