Jorge is a 100-percent owner of JJ LLC (taxed as an S corporation). He works full time for JJ and his marginal ordinary tax rate is 37 percent. Which of the following statements is true regarding Jorge's tax treatment of business income allocated to him from JJ?
A. Business income allocations are subject to the additional Medicare tax.
B. Business income allocations are taxed at a maximum 23.8 percent tax rate.
C. Business income allocations are subject to self-employment tax.
D. Business income allocations are not subject to the net investment income tax.
Answer: D
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Black Cow Company bought merchandise on account from Lubbock Transport, invoice no. 3450, $1,650, terms 2/10, n/30 . Using the periodic inventory system, Black Cow Company would record a
a. credit to Purchases. b. debit to Purchases. c. debit to Accounts Payable, Lubbock Transport. d. credit to Cash.
At the end of 2013, Clock Products, Inc determined that one of its patents was worthless. The patent had a cost of $300,000 . The patent had been amortized for 5 years of its estimated 15-year legal life. Which of the following statements is correct?
a. Clock Products must continue to amortize the patent over its remaining 10 years of life. b. The patent must be reduced to 5/15, or 33.3% of its original cost and amortized over the remaining 10 years. c. The remaining unamortized cost must be removed from the accounting records and treated as a loss on the income statement. d. Clock Products must correct its financial statements for the past five years, so that the entire cost is allocated to that five-year period.
When you are bearing in mind an audience member’s income, you are considering their ______ background.
Fill in the blank(s) with the appropriate word(s).
Economies with per capita incomes in the low to middle range that are in a transition toward developed status are referred to as emerging market economies.
Answer the following statement true (T) or false (F)