Corinne's employer offers a cafeteria plan that allows employees to choose among a number of benefits. Each employee is allowed $12,000 in benefits. For the current year, Corinne selected $4,500 of health insurance, $5,500 of dependent care, $1,000 in 401(k) contributions, and $1,000 of cash. How much must Corinne include in taxable income?
What will be an ideal response?
$1,500
Employees can exclude up to $5,000 of dependent-care benefits, so the additional $500 is taxable and the $1,000 of cash is always taxable.
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Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the payment of the invoice within the discount period in its cash payments journal, Farthington would enter:
A. $14,994 in the Accounts Payable Dr. column and $14,994 in the Cash Cr. column. B. $15,300 in the Cash Cr. column and $15,300 in the Accounts Payable Dr. column. C. $15,300 in the Cash Cr. column and $15,300 in the Inventory Dr. column. D. $15,300 in the Inventory Cr. column; $14,994 in the Accounts Payable Dr. column; and $306 in the Inventory Cr. column. E. $15,300 in the Accounts Payable Dr. column; $14,994 in the Cash Cr. column; and $306 in the Inventory Cr. column.
The interest portion of an installment note payment is computed by multiplying the interest rate by the carryingamount of the note at the end of the period
a. True b. False Indicate whether the statement is true or false
The view that a change in the timing of taxes does not affect people's consumption is known as the
A. tax equalization postulate. B. fiscal policy equality law. C. Lucas critique. D. Ricardian equivalence proposition.
The following amounts are from Silverton Co's 2014 income statement: Sales ................................................. $340,000 Sales returns and allowances .......................... 5,000 Cost of goods sold .................................... 132,000 Utilities expense ..................................... 66,000 Interest revenue ...................................... 1,000 Income tax on
operations .............................. 28,000 Extraordinary loss due to earthquake, net of tax ...... 5,000 Interest expense ...................................... 4,000 Salaries expense ...................................... 46,000 Loss on sale of investments ........................... 3,000 What amount would Silverton show for income from continuing operations on a multiple-step format income statement? a. $52,000 b. $68,000 c. $57,000 d. $96,000