Which of the following arguments is supportive of allocation of income taxes?
a. Future predictions of net income are enhanced when income taxes are allocated.
b. Income tax expense computed under interperiod tax allocation is a better predictor of future cash flows than income taxes actually paid.
c. Income tax is not an expense; it is a sharing of profits with government.
d. Income tax expense based on actual payments is more understandable to users than allocated income taxes.
A
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The Erhardt Corporation was incorporated on January 1 . 2014, with the following authorized capitalization: • 40,000 shares of common stock, no par value, stated value $40 per share • 10,000 shares of 5 percent cumulative preferred stock, par value $10 per share During 2014, Erhardt issued 34,000 shares of common stock for a total of $1,700,000 and 6,000 shares of preferred stock at $16 per
share. In addition, on December 20, 2014, subscriptions for 2,000 shares of preferred stock were taken at a purchase price of $17 . These subscribed shares were paid for on January 2, 2015 . What should Erhardt report as total contributed capital on its December 31 . 2014, balance sheet? a. $1,540,000 b. $1,762,000 c. $1,796,000 d. $1,830,000
Confidential information is private or secret and should be released only to people who have a proven need to know
Indicate whether the statement is true or false
The contents of a benchmark job are not stable; they vary frequently.
Answer the following statement true (T) or false (F)
Even in large companies, few internal controls exist in order to establish greater control of security among limited individuals.
Answer the following statement true (T) or false (F)