In the case of a person with other income of $300,000, 15% of his or her Social Security benefits received are excluded from gross income
a. True
b. False
Indicate whether the statement is true or false
True
RATIONALE: For higher income taxpayers, 85% of their Social Security benefits are included in gross income. The other 15% is excluded as a rough approximation of his or her contributions to the Social Security system—a recovery of capital.
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The two forms of short-term financing are short-term debt and ________.
A. demand deposit B. bonds C. commercial paper D. marketable security
On January 1, a company issues bonds dated January 1 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $312,177. The journal entry to record the issuance of the bond is:
A. Debit Cash $312,177; credit Premium on Bonds Payable $12,177; credit Bonds Payable $300,000. B. Debit Cash $300,000; debit Premium on Bonds Payable $12,177; credit Bonds Payable $312,177. C. Debit Cash $312,177; credit Discount on Bonds Payable $12,177; credit Bonds Payable $300,000. D. Debit Cash $312,177; credit Bonds Payable $312,177. E. Debit Bonds Payable $300,000; debit Bond Interest Expense $12,177; credit Cash $312,177.
When generating financial statements, the Securities and Exchange Commission (SEC) allows publicly traded foreign companies to use the International Financial Reporting Standards (IFRS) rather than the Generally Accepted Accounting Principles (GAAP) if IFRS is the accounting system used in their home country.
Answer the following statement true (T) or false (F)
________ is an internal cost of quality incurred when a process step must be performed again or fixed before an item can be shipped
Fill in the blanks with correct word