Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2019.
A. Gain on installment sale in2019 deferred until 2020.
B. Interest received from municipal bonds in 2019.
C. Federal income tax refunds from tax paid in prior years.
D. Additional first-year (bonus) depreciation deduction claimed in 2019.
E. Loss on sale between related parties in 2019.
F. Meal expense not deducted in 2019 because of the 50% limitation.
G. Cash dividends distributed to shareholders in 2019.
H. Premiums paid on key employee life insurance policy (assume no increase in cash surrender value of policy) in 2019.
I. Section 179 expense in second year following election.
J. Gain realized but not recognized in a like-kind exchange transaction in 2019.
A. Increase
B. Increase
C. Increase
D. Increase
E. Decrease
F. Decrease
G. Decrease
H. Decrease
I. Decrease
J. No effect
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Which of the following statements is true of the FDA?
A) It places a complete ban on animal testing. B) It allows animal testing for only certain kinds of cosmetics like household soaps. C) It excuses companies to skip ingredients for products on labels if they are carcinogenic. D) It can withdraw approval of any previously licensed drug.
A limitation of language translation is that some words in one language do not have an equivalent meaning in other languages
Indicate whether the statement is true or false
On January 4, Year 1, Barber Company purchased 11,500 shares of Convell Company for $138,000 plus a broker's fee of $3600. Convell Company has a total of 57,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.75 per share, and its net income was $111,000 and $106,000 for Year 1 and Year 2, respectively. The January 12, Year 3, entry to record Barber's sale of 6900 shares of Convell Company stock, which represents 60% of Barber's total investment, for $93,150 cash should be:
A. Debit Cash $93,150; credit Gain on Sale of Investment $8190; credit Equity Method Investments $84,960. B. Debit Cash $93,150; debit Loss on Sale of Investment $48,450; credit Equity Method Investments $141,600. C. Debit Cash $93,150; credit Gain on Sale of Investment $17,250; credit Equity Method Investments $75,900. D. Debit Cash $93,150; debit Loss on Sale of Investment $7500; credit Equity Method Investments $100,650. E. Debit Cash $93,150; debit Loss on Sale of Investment $17,250; credit Equity Method Investments $110,400.
Why might one expect that for a manager pursuing an active management strategy that the backward-looking tracking error at the beginning of the year will deviate from the forward-looking tracking error at the beginning of the year?
What will be an ideal response?