Alicia works two jobs and still makes very little income. Why is the Saver's Tax Credit a good idea for her?

A) Because it will possibly increase her tax refund
B) Because it will possibly reduce the amount of income tax that she owes
C) It allows her to offset part of the first $2,000 that she can contribute to an IRA or a 401(k) plan.
D) All of the above are correct.
E) Only A and B are correct.


Answer: D

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During July 2012 Ralston Company decides to dispose of one of its subsidiaries which qualifies for accounting as a discontinued operation. At the July 2012 measurement date Ralston Company estimates that it will report net losses of $1,500,000 dollars from the measurement date until the disposal date which is expected to be in April 2013 . In addition, Ralston estimates that it will lose $300,000

on the sale of the segment. How much gain or loss on discontinued operations will Ralston report in its 2012 income statement (net of income taxes)? a. $1,500,000 loss b. $0 c. $1,800,000 loss d. $300,000 loss

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Indicate whether the statement is true or false

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