BRW Partnership reported gross income from operations of $60,000, interest income of $3,000, rental expense of $20,000, and a charitable contribution of $6,000 . On its Schedule K, the partnership reports ordinary business income of $40,000, and separately stated interest income ($3,000) and charitable contributions ($6,000)
a. True
b. False
Indicate whether the statement is true or false
True
RATIONALE: The partnership combines all amounts that would be considered ordinary business income on Form 1065, page 1 . Any amounts that could differently affect two partners' tax liabilities must be separately stated. Such separately stated items include interest income and charitable contributions.
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Ryan's friends consider him an expert on electronic products. Ryan purchased quick read, one of the first electronic books launched by EasyTech Inc years before any of his friends did. Ryan paid four times more for this product than they did
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Imagine that you manage a high-volume electronics store, Electricity, Inc. Each of the salespeople has a very ambitious monthly sales goal; for the store to meet its overall goal, all of the salespeople need to meet their individual goals. Apply each of the four keys to a successful control system to Electricity, Inc., explaining how you would implement an effective control system
What will be an ideal response?
XBRL taxonomies are classification schemes that are compliant with the XBRL specifications to accomplish a specific information exchange
Indicate whether the statement is true or false
A company sold $12,000 worth of bicycles with an extended warranty. The company's experience is that warranty expense averages 2% of sales. The current period's entry to record the warranty expense is:
A. Debit Sales Allowances $240; credit Estimated Warranty Liability $240. B. Debit Warranty Expense $240; credit Cash $240. C. Debit Estimated Warranty Liability $240; credit Cash $240. D. Debit Prepaid Warranties $240; credit Warranty Expense $240. E. Debit Warranty Expense $240; credit Estimated Warranty Liability $240.