Garden Company Had Pretax Accounting Income of $24,000 During 2014

question 49

Multiple Choice

Garden Company had pretax accounting income of $24,000 during 2014.Garden's only temporary difference for 2011 relates to a sale made in 2012 and recognized for accounting purposes at that time.However,Garden uses the installment sales method of revenue recognition for tax purposes.During 2014 Garden collected a receivable from the 2012 sale which resulted in $6,000 of income under the installment sales method.Garden's taxable income for 2014 would be

• A) $6,000.
• B) $18,000.
• C) $24,000.
• D) $30,000.

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Definitions:

Degrees Of Freedom

Degrees of freedom are the number of values in a final calculation of a statistic that are free to vary, often linked to the sample size.

Degrees Of Freedom

The number of independent values or quantities that can vary in the analysis without violating any constraint.

Sample Size

The number of observations or data points collected in a study or used in a statistical analysis, crucial for the validity and reliability of results.

T-Values

Statistics used in T-tests that compare the means of two groups. They indicate how many standard deviations an observed sample mean is from the null hypothesis mean.