Answer the following statements true (T) or false (F)
1. The income tax column in a payroll register includes the tax owed by the proprietor.
2. When using a payroll register, Salaries and Wages Expense equals the current period earnings of
employees.
3. The current period earnings column of the payroll register only includes regular and overtime
earnings.
4. Dallas Company has gross pay for March of $50,000. The journal entry to record salaries expense
would include a debit to Salaries and Wages Payable for $50,000.
5. Ron is an employee of Panache, Inc. Panache pays a portion of his health insurance premium and
also contributes to a retirement plan in his name. The company's share of the health insurance premium is $600, and the company's contribution to the retirement plan is $860. The journal entry to record the employee benefits to be paid by the company should include a debit to Employee Health Insurance Payable for $1,460.
1. False
2. True
3. False - This column includes regular and overtime earnings, commissions, and bonuses.
4. False
5. False
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The ____________ actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board’s decisions.
a. Intervening board b. Passive board c. Certifying board d. Operating board
Mike and Michelle decided to liquidate their jointly owned corporation, Pennsylvania Corporation. After liquidating its remaining inventory and paying off its remaining liabilities, Pennsylvania had the following tax accounting balance sheet. FMV Adjusted basis AppreciationCash$200,000 $200,000 Building200,000 100,000 100,000 Land100,000 150,000 (50,000)Total$500,000 $450,000 $50,000 Under the terms of the agreement, Mike will receive the $200,000 cash in exchange for his 40 percent interest in Pennsylvania. Mike's tax basis in his Pennsylvania stock is $50,000. Michelle will receive the building and land in exchange for her 60 percent interest in Pennsylvania. Her tax basis in the Pennsylvania stock is $100,000.What amount of gain or loss does Mike recognize in
the complete liquidation? What will be an ideal response?
Equitable remedies are discretionary and are available only if monetary damages are inadequate
Indicate whether the statement is true or false