Aaron found a prototype of a new pair of glasses with Internet service and other computing capabilities while in a bar one evening. He offered the prototype to the owner of a magazine and blog that reviews new digital devices. The owner paid Aaron $10,000 in return for the prototype. What tax issues should Aaron consider?
What will be an ideal response?
Should the $10,000 be included in Aaron's gross income?
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[APPENDIX] For 2015, Wasabi Company has accounting revenues of $6,000 . However, because of temporary differences between tax and accounting, $1,000 of this is not subject to tax. If expenses are $3,000 for both tax and accounting, and the tax rate is 40%, what is the amount of tax payable to the IRS?
a. $ 400 b. $ 800 c. $1,200 d. $1,600
Which of the following statements concerning EUPs is true?
a. In a complex production environment, it is more difficult to compute a single EUP for conversion costs. b. Using FIFO costing, equivalent units of production (EUP) can be determined by subtracting EUPs in Beginning WIP from weighted average EUP. c. Weighted average equivalent units of production (EUP) can be determined by adding EUPs in ending WIP to units transferred out. d. All of the above statements are true.
Sensitive communication, such as the firing of an employee, is best done with a letter so there is legal evidence of the action
Indicate whether the statement is true or false
Which of the following supports the assessment that descriptive and predictive analytics benefit from a high volume of data?
a. Statistical analysis and reliability of predictions are better when the population size increases. b. Aforecasting method with manyinput factors can predict better than the one with only a few input factors. c. More data beats better modeling. d. All of the above