Which one of the following statements regarding operating losses is false?
A) The tax benefit of an operating loss carryback is recognized in the period of loss as a current receivable on the balance sheet.
B) Temporary differences and operating loss carryforwards are accounted for similarly.
C) The journal entry to recognize an operating loss carryback would include a credit to Income Tax Benefit from Operating Loss Carryback.
D) The tax benefit of an operating loss carryforward is to be recognized in the period of loss as a current receivable.
D
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Liberty Industries purchased merchandise worth $1,800 on credit, terms n/30. What is the required journal entry to record the transaction under the perpetual inventory system?
A) Accounts Receivable 1,800Purchases 1,800 B) Purchases 1,800Merchandise Inventory 1,800 C) Merchandise Inventory 1,800Accounts Payable 1,800 D) Accounts Payable 1,800Merchandise Inventory 1,800
Why is credit enhancement required in a securitization?
What will be an ideal response?
Nevland Corporation is considering the purchase of a machine that would cost $130,000 and would last for 6 years. At the end of 6 years, the machine would have a salvage value of $18,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $44,000. The company requires a minimum pretax return of 19% on all investment projects. The net present value of the proposed project is closest to (Ignore income taxes.):See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
A. $26,376 B. $74,902 C. $20,040 D. $38,040
The time period that the IRS uses to determine a firm's payroll tax deposit schedule is called the:
A) Evaluation period. B) Tax lookback. C) Lookback period. D) Prior year.