Which of the following can produce an AMT preference rather than an AMT adjustment?
a. Interest on private activity bonds issued in 2015.
b. Percentage depletion.
c. Incentive stock options (ISOs).
d. Only a. and b.
e. a., b., and c.
d
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The open purchase order file in the purchasing department is used to determine
a. the quality of items a vendor ships b. the best vendor for a specific item c. the orders that have not been received d. the quantity of items received
On July 1, Shady Creek Resort borrowed $430,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $64,083. What is the journal entry to record the first annual payment?
A. Debit Interest Expense $34,400; credit Cash $34,400. B. Debit Interest Expense $34,400; debit Notes Payable $29,683; credit Cash $64,083. C. Debit Interest Expense $34,400; debit Interest Payable $29,683; credit Cash $64,083. D. Debit Cash $430,000; debit Interest Expense $64,083; credit Notes Payable $494,083. E. Debit Interest Expense $64,083; credit Cash $64,083.
A company's month-end adjusting entry for Insurance Expense is $1,000. If this entry is not made then expenses are understated by $1,000 and net income is overstated by $1,000.
Answer the following statement true (T) or false (F)
Fritz is seriously considering bankruptcy, because he has a large number of outstanding debts, the principal ones of which are as follows: (1) he owes his ex-wife $25,000 in back alimony and child support; (2) he owes $20,000 in guaranteed student
loans; (3) he has a lawsuit pending against him in which his ex-girlfriend is asking for $50,000 in damages (the suit is based upon the intentional tort of battery and arises from an incident in which Fritz got mad at his girlfriend and hit her); and (4) he owes the First Bank $20,000 for a loan secured by his new sports car. Should Fritz file for bankruptcy?