1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
weeeeeb [17]
3 years ago
6

Identify which of the following statements is true. A. A corporation that accrues compensation payable to an employee must pay t

he amount within two and onehalf months after the close of the taxable year to deduct the amount in the year of the accrual. B. Accrued compensation that is deductible in the year of accrual is considered to be part of an IRS deferred compensation plan. C. Accrued compensation not paid within three and onehalf months after the close of the corporation tax year is deducted in the year following the accrual. D. All of the above are false.
Business
1 answer:
jasenka [17]3 years ago
6 0

Answer:

A. A corporation that accrues compensation payable to an employee must pay the amount within two and one half months after the close of the taxable year to deduct the amount in the year of the accrual.

Explanation:

This is called the 2.5 months rule. Sections 404 and 451 state that accrual taxpayers are allowed to claim deductions for accrued compensation even if it actually paid them after the business's tax year is over. In order for this rule to apply, the accrued compensation must:

  • satisfy the all events test: the events that result in the accrued compensation must occur before the compensation is made, e.g. you must work for a company during year X before the company hands out a bonus for year X.
  • the compensation must be paid within 2.5 months after the business's tax year is over. E.g. if a company's tax year ends on December 31, all accrued compensations like paid vacations or bonuses must be paid before March 15.
You might be interested in
Blossom Corporation, a manufacturer of ethnic foods, contracted in 2020 to purchase 470 pounds of a spice mixture at $2.35 per p
Sveta_85 [38]

Answer:

No gain or loss.

Explanation:

Given:

Amount of spice mixture = 470 pound

Current price = $2.35 per pound

Future price = $2.73 per pound

Computation:

We know that, Future price of spice mixture is higher than current price of spices.

But contract price is fixed at $2.35.

Therefore, no gain or loss will be recognized.

7 0
3 years ago
Read 2 more answers
PLEASE HELP!!! I NEED HELP WITH THE WHOLE TEST SOMEONE PLS HELP
sergij07 [2.7K]

Answer:

Pretty sure it's to <u>shift the cells up</u>

Explanation:

7 0
2 years ago
"during the 1980s, incompatible computer products resulted in ____."
PIT_PIT [208]
Excessive spare parts inventories, a lack of transferable employee skills, increased support costs.
7 0
3 years ago
Bobby is the plant manager of one of the three manufacturing plants of a paper manufacturing company. He is responsible for sync
Oduvanchick [21]

Answer:

a. middle manager.

Explanation:

In this scenario, Bobby is the plant manager of one of the three manufacturing plants of a paper manufacturing company. He is responsible for synching the processes of his plant with the standards set at the company's headquarters. He sends weekly updates of raw material requirements to the purchase division at the headquarters. He also connects the company's human resources department with the employees who work in his plant. In this scenario, Bobby is most likely a middle manager.

A middle manager refers to an individual who acts as an intermediary between the executive management and the employee working with the company.

5 0
3 years ago
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annua
Fantom [35]

Answer:

Bond Price = $877.3835955 rounded off to $877.380

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and r or YTM will be,

Coupon Payment (C) = 0.064 * 1000 = $64

Total periods (n)= 25

r or YTM = 7.5% or 0.075

The formula to calculate the price of the bonds today is attached.

Bond Price = 64 * [( 1 - (1+0.075)^-25) / 0.075]  +  1000 / (1+0.075)^25

Bond Price = $877.3835955 rounded off to $877.380

3 0
2 years ago
Other questions:
  • Grassroots lobbying includes __________. using high-paid professionals to contact legislators testifying at government hearings
    12·1 answer
  • A company produces 100 cars in the year 2017 but only manages to sell 90 of the cars. In the year 2018 they sell the 10 cars tha
    8·1 answer
  • Michael dell warned companies to be careful about the way they interpret data from the​ ________. the sales numbers might reflec
    14·1 answer
  • Bonita Corporation made credit sales of $26,400 which are subject to 5% sales tax. The corporation also made cash sales which to
    9·1 answer
  • Reasons for the formation of partnership
    7·1 answer
  • Llano’s stock is currently selling for $50.00. The expected dividend one year from now is $1.50, and the dividend growth rate is
    8·1 answer
  • Kylie Co. owns 67% of Jayzee Inc. On their 12/31/2017 pre-consolidation trial balances, Kylie reports $739,972 Liabilities and J
    15·1 answer
  • The difference in income between the richest and poorest citizens is called a command economy. unemployment. private property. t
    9·2 answers
  • Ne
    6·1 answer
  • In 25 years, a bond with a 4.75% annual interest rate earned $2,375 as interest. What was the principal amount of the bond if th
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!