Cher sold undeveloped land that originally cost $150,000 for $225,000 . There is a positive AMT adjustment of $75,000 associated with the sale of the land
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: There is no AMT adjustment associated with the sale, because the regular income tax adjusted basis and the AMT adjusted basis are the same ($150,000); real property is not depreciable. Thus, the recognized gain for each is $75,000 ($225,000 – $150,000).
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a. True b. False Indicate whether the statement is true or false
A job-order cost sheet is the source document where direct labor costs are assigned to individual jobs
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Answer the following statement true (T) or false (F)
Indicate whether each of the following statements regarding internal controls is true or false. ________ a) Cash receipts should be deposited in a bank when they reach a predetermined level of materiality.________ b) To improve operating efficiency, a company should make most of its disbursements using cash.________ c) Supporting documents should be reviewed by the check signer prior to signing the check.________ d) Supporting documentation should not be marked "paid" until the check clears the bank.________ e) All spoiled and voided checks should be shredded.
What will be an ideal response?