CT Computer Corporation, an accrual-basis taxpayer, sells service contracts on the computers it sells. At the beginning of January of this year, CT Corporation sold contracts with service to begin immediately:One for three months$200One for 20 months 800One for 48 months 4,000The amount of income CT Corporation must report for this year is
A. $200.
B. $1,680.
C. $1,000.
D. $5,000.
Answer: B
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The Sting Company began operations at the beginning of 2018 and had GAAP (book) income of $350,000 and taxable income of $280,000. During 2018, depreciation expense for tax purposes exceeded GAAP (book) depreciation expense by $210,000, while warranty expense for GAAP (book) purposes exceeded warranty expense for tax purposes by $140,000. These two temporary differences will reverse as follows: Depreciation Warranty2019$35,000 70,000 2020 70,000 56,000 2021 105,000 $14,000 The enacted income tax rate for 2018 and 2019 is 38%, while the enacted income tax rate for 2020 and 2021 is 40%. Sting did not make any income tax payments during 2018. Requirement:Prepare the journal entry to record income tax expense for the year ended December 31, 2018.
What will be an ideal response?
Under common law, which standard may a client sue an auditor for failure to demonstrate due care?
a. Negligence b. Gross Negligence c. Fraud d. All of the above.
Write a compound sentence from this sentence: "Halvor analyzed the data that Victoria gathered."
The weighted average cost of capital of a firm represents the:
A. minimum rate of return a firm must earn on average-risk investments to maintain its current value. B. maximum rate of return a firm can expect to earn on its investments. C. maximum interest rate a firm should pay on the debt it uses. D. minimum dividend yield a firm must pay to its preferred stockholders. E. required rate of return that should be used to evaluate capital budgeting projects that have above-average risk.