In Applying the Gross Income Test in the Case of Dependents

question 145

Essay

In applying the gross income test in the case of dependents that are married, could the application of community property laws have any effect? Explain.

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Definitions:

Wages Payable

An account liable for recording the unpaid earnings of employees for their completed work.

Accrue

The process in accounting by which revenues and expenses are recognized when incurred, regardless of when cash transactions occur.

Salaries Expense

The total amount spent by an organization on employee salaries over a specific period of time.

Salaries Payable

A liability account that records the amount of salaries owed to employees but not yet paid.