Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) Preferred 8% stock, $100 par(no change during the year) $1,200,000 200,000 Common stock, $50 par (no change during the year) 1,000,000 Income before income tax for year 320,000 Income tax for year 80,000 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented above,
what is the number of times bond interest charges were earned (round to twodecimal places)?
a. 5.00
b. 5.44
c. 4.00
d. 4.33
b
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The computation of the alternative minimum tax base begins with regular taxable income. Which of the following is not part of the formula for computing the alternative minimum tax base?
A. Add back tax-exempt interest from a private activity bond not issued in 2009 or 2010 B. Subtract the AMT exemption amount (if any) C. Add the standard deduction amount if used for regular tax D. Subtract state income taxes paid
Cash received from the sale of a plant asset
a. Balance Sheet—Property, Plant, and Equipment b. Balance Sheet—Intangible Assets c. Balance Sheet—Current Assets d. Balance Sheet—Other Assets e. Income Statement—Operating Section f. Income Statement—Other Revenue and Expense Section g. Statement of Cash Flows
Equipment was purchased for $78,000 . It had an estimated residual value of $12,000 and has a current carrying value of $50,000 . Its depreciable cost must have been
a. $62,000. b. $42,000. c. $66,000. d. $28,000.
Fair use applies if you are not using enough of the original to ________________
a. recognize it b. affect its value c. provide a fair representation d. accurately depict its meaning