Which of the following statements is (are) true regarding the taxation of distributions from individual annuities?
I. Individual annuity distributions are never taxable.
II. Once the annuitant has recovered the premiums he or she paid for the annuity, the entire annuity distribution is taxable.
A) I only
B) II only
C) both I and II
D) neither I nor II
Answer: B
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A bill is received for electric service; the charge for the electricity is recorded, but payment will be made later. 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.
Identify the statements in which John McCall argues that strict liability is no more unfair than it would be to hold injured consumers accountable.
A. The consumer who is injured by a product is unfairly disadvantaged in the economic competition and is denied an equal opportunity to compete in the marketplace. B. Assigning the costs for injuries caused by defective products to other consumers of the product and to the shareholders of the company is more appropriate than assigning the costs to the injured consumer or to society at large. C. Compensation returns the parties to equal standing, and the economic competition can continue as a result. D. By holding the manufacturer liable, the costs are passed on, ordinarily through increased liability insurance costs, to those who stand to benefit from the product. E. A and C. F. B and D.
The fact that one department may be labor intensive while another department is machine intensive explains in part why multiple predetermined overhead rates are often used in larger companies.
Answer the following statement true (T) or false (F)
Benoit Corporation's manufacturing overhead includes $13.90 per machine-hour for variable manufacturing overhead and $627,840 per period for fixed manufacturing overhead.Required:Determine the predetermined overhead rate for the denominator level of activity of 6400 machine-hours. (Round your answer to 2 decimal places.)Predetermined overhead rate?
What will be an ideal response?