The client is a corporation which uses high-tech equipment to manufacture its product. Because of the high level of wear and tear due to long production runs and frequent technology changes, the client usually replaces the equipment every two years. According to IRS guidance, the MACRS life of the equipment is five years. In order to accelerate depreciation deductions, which tax depreciation option should the client elect?
A. MACRS with a straight-line election
B. units-of-production method
C. regular MACRS treatment
D. alternative depreciation system (ADS)
Answer: B
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Which of the following is paid by the employer only?
A) OASDI tax B) Medicare tax C) employee income tax D) federal unemployment tax
Flagg records adjusting entries at its December 31 year end. At December 31, employees had earned $12,000 of unpaid and unrecorded salaries. The next payday is January 3, at which time $30,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.
A. Debit Salaries payable $12,000, credit Salaries expense $12,000. B. Debit Salaries expense $18,000; credit Salaries payable $18,000. C. Debit Salaries expense $12,000; credit Salaries payable $12,000. D. Debit Salaries expense $18,000; debit Salaries payable $12,000; credit Cash $30,000. E. Debit Salaries payable $18,000; credit Cash $18,000.
On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include
A) receipts from the sale of investments B) amortization of premium on bonds payable C) payments for cash dividends D) receipts from the issuance of capital stock
Employers are obligated under the Family Support Act to withhold child support from the noncustodial parent's paychecks
Indicate whether the statement is true or false