AGI is used as the base for application of percentage limitations (i.e., 20%, 30%, 50%) that apply to the charitable contribution deduction for regular income tax purposes. Modified AGI is used as the base for application of percentage limitations that apply to the charitable contribution deduction for AMT purposes
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: The charitable contribution deduction for regular income tax purposes is used in calculating AMTI. Since the calculations are the same for both, no AMT adjustment is required for charitable contributions. AGI is used as the base for application of percentage limitations for both AMT and regular income tax charitable contributions.
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Which of the following statements is true regarding the two allowance methods used to account for bad debts?
a. The percentage of net credit sales approach takes into account the existing balance in the Allowance for Doubtful Accounts account. b. The direct write-off method takes into account the existing balance in the Allowance for Doubtful Accounts account. c. The percentage of accounts receivable approach takes into account the existing balance in the Allowance for Doubtful Accounts account. d. The direct write-off method does a better job of matching revenues and expenses.
A product category is also known as a:
A) product brand. B) product variant. C) product type. D) product class.
Adjustments In your audit of Lomar Company for the calendar year 2014, you find a number of items that you believe represent possible adjustments to the company's books. Management does not want to make any adjustments. REQUIRED: Assuming that Lomar is a public company describe how the adjustments might impact your audit report on internal control over financial reporting
The effects of differences in accounting methods are of little importance when analyzing comparable data from competing businesses
Indicate whether the statement is true or false