Discuss why the distinction between deductions for adjusted gross income and deductions from adjusted gross income is important for individual taxpayers
Individuals may deduct the greater of total itemized deductions or the standard deduction amount from AGI to arrive at taxable income. If the standard deduction amount is greater than the total itemized deduction amount, any expense included in the calculation of the total itemized deduction amount loses its tax benefit. Whereas, any deductions for AGI will reduce AGI without limitation. The standard deduction amount can still be taken. It is important to calculate AGI correctly and make sure that proper deductions are taken "above the line" (i.e., for AGI). AGI is used as a benchmark to establish limits for many itemized deductions. Therefore, insuring that AGI is as low as possible may assist in allowing more itemized deductions, because medical expenses (10%), casualty losses (10%), miscellaneous itemized deductions (2%), and charitable contributions (50%) are limited by the AGI amount. In addition, the itemized deductions and exemptions for high-income taxpayers are subject to phase-outs. Also, most income tax credits are either reduced or phased-out based on the taxpayers adjusted gross income.
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Answer the following statements true (T) or false (F)
1. The workplace is less diverse and more complex than it was a few decades ago. 2. Technology eliminates the need for multicultural awareness. 3. Scientific management identifies the most efficient and effective manner for performing a task. 4. Gangplank theory was the first formal recognition of horizontal communication. 5. Dale Carnegie was one of the first writers to link communication skills with managerial effectiveness.
A machine with a cost of $130,000, current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:
A. $21,000. B. $4,000. C. $22,000. D. $17,000. E. $57,000.
Groupon built its business model on the premise that
A. businesses would be willing to post their 30-second TV advertising on a social network. B. consumers would be willing to pay for fun and exciting online video games that are playable on their smartphones and tablet devices. C. consumers would band together and try a new product or service if businesses would offer lower prices to entice them to take advantage of a daily deal offered to them. D. consumers would be receptive to online sweepstakes. E. consumers would want to "check in" and earn points and badges for visiting businesses.
Which theory listed below is not one of the process theories discussed in Chapter 5?
a. Equity theory b. Expectancy theory c. Goal-setting theory d. Need theory