The Tax Court decides an expenditure is deductible in the year the issue was first litigated. The government appealed and won a reversal in the Ninth Circuit Court of Appeals. It is the only appellate decision regarding the issue. If and when the Tax Court encounters this issue again, how will it hold?
What will be an ideal response?
The Tax Court will hold that the expenditure is deductible except in the Ninth Circuit. The taxpayers in the Ninth Circuit will be denied the deduction.
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Fidelity Stereo Company has provided the following information regarding its activity-based costing system:
? Purchasing department costs are allocated based on purchase orders, and the predetermined overhead allocation rate is $77 per purchase order. ? Assembly department costs are allocated based on the number of parts used, and the predetermined overhead allocation rate is $5 per part. ? Packaging department costs are allocated based on the number of units produced, and the predetermined overhead allocation rate is $4 per unit produced. Each stereo produced has 50 parts, and the direct materials cost per unit is $70. There are no direct labor costs. Fidelity Stereo has an order for 1200 stereos, which will require 45 purchase orders in all. What is the total cost for the 1200 stereos? A) $392,265 B) $307,950 C) $303,465 D) $388,800
What remedies can the EEOC require from organizations when they are found guilty of harassment of religion?
a. Monetary payment to the aggrieved b. Jail time for the offending supervisors c. The EEOC does not have the authority to levy remedies d. Requirement to publicize the offense in the local news outlets
Which of the following is NOT one of the estimates used by PERT to estimate the duration of an activity?
a. optimistic time b. most likely time c. catastrophic time d. pessimistic time
Which of the following best describes direct effect?
A. It is the making of a decision by general agreement and in the absence of any voiced objection. B. It is the relinquishment of an obligation owed by another. C. It is a principle whereby a treaty may be invoked by a private person to challenge the actions of a state that is a party to the treaty. D. It is a principle that governments must make their rules, regulations, and practices open and accessible to the public and other governments.