[The Following Information Applies to the Questions Displayed Below

question 45

Multiple Choice

[The following information applies to the questions displayed below.]
An analysis of changes in selected balance sheet accounts of Johnson Corporation shows the following for the current year:
Johnson's income statement for the current year includes a $14,000 loss on disposal of plant assets.All payments and proceeds relating to purchase or sale of plant assets were in cash.
-The amount of cash paid by Johnson to acquire plant assets during the current year was:

• A)$ 53,000.
• B)$267,000.
• C)$ 42,000.
• D)$160,000.

Understand the principles underlying taxation, including the ability-to-pay and benefits-received principles.

Identify the components and determinants of taxable income.

Recognize the characteristics of progressive, regressive, and proportional tax systems.

Understand how government revenues are generated and how they relate to expenditures in education and defense.

---

Definitions:

Recommendations

Suggestions or proposals made to improve or rectify a situation.

Statement of Purpose

A document that outlines an individual's intentions, goals, and motivations for applying to a specific program or position.

Informational Reports

Documents or presentations that provide facts, data, and analysis without offering opinions or recommendations, often used in business and research contexts.

Comprehensive

Including or dealing with all or nearly all elements or aspects of something.