Which of the following statements about divorce settlements is true?
A. Property transfers pursuant to divorce have no income tax consequences.
B. Child support is excluded from the recipient's gross income.
C. Child support is an above-the-line deduction for the payer.
D. Statements A. and B. are true.
Answer: D
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Carl and Stefanie each invest $15,000 in a business and are given shares of stock in Thibeau Industries as evidence of their ownership interests. For this transaction, identify the effect on the accounting equation
a. Assets increase and liabilities increase. b. Assets increase and stockholders' equity increases. c. Liabilities increase and stockholders' equity decreases. d. Liabilities decrease and assets decrease.
In general, the greater the distance between the product source and the target market, the greater the time delay for delivery and the lower the transportation cost
Indicate whether the statement is true or false
In historical cost accounting, the discounting process uses the original interest rate appropriate for the particular borrower at the time it incurred the obligation. That rate will have depended on the amount and terms of the borrowing arrangement as well as the risk that the borrower will default on the obligations. The rate is known as the
a. prime interest rate. b. explicit interest rate. c. imputed interest rate. d. federal funds rate. e. applicable federal rate.
The decision to exploit or not to exploit a new entry opportunity depends on whether the entrepreneur has sufficient information, and on whether the window of opportunity is still open.
Answer the following statement true (T) or false (F)