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ASHA 777 [7]
3 years ago
8

A customer has purchased 5,000 shares of ABC Corporation stock in lots of 100 shares over an extended period of time at varying

prices. The customer now sells 500 of the shares. Which statement is TRUE?
a. IRS rules require that First In First Out accounting to be used to identify the shares sold when computing any gain or loss
b. IRS rules require that LIFO accounting be used to identify the shares sold when computing any gain or loss
c. IRS rules allow the taxpayer to specify which shares being sold
d. IRS rules require that the method giving the largest capital gain be used
Business
1 answer:
ozzi3 years ago
8 0

Answer:

c. IRS rules allow the taxpayer to specify which shares being sold

Explanation:

As eahc method will make the capital gain or loss to differ the Internal Revenue Service leaves to the stockholder to decide the method

The default method is the FIFO method which states the first shares purchased are the first sale but, leaves choise to the stockhodler to use specific identification which, is what the statement correctly points out.

The method are not "required" but allowed as the stockholder see fit.

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The extent to which the income from individual transactions is affected by fluctuations in foreign exchange values is known as
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3 years ago
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Rockwood International needs to make risky decisions on a daily basis. Therefore, its managers are likely to
gizmo_the_mogwai [7]

Answer:

Centralize decision making

Explanation:

From the question we are informed about Rockwood International who needs to make risky decisions on a daily basis. Therefore, its managers are likely to Centralize decision making.

Centralization can be regarded as setup whereby decision-making powers are been concentrated or given to few leaders that are on top of the organizational structure. Decisions making are been carried out at the top then communicated to lower-level managers so that implementation can take place.

5 0
3 years ago
Select the correct answer. Which definition refers to visual merchandising? A. the art of presenting merchandise in a creative w
WITCHER [35]

Answer:

A

Explanation:

the art of presenting merchandise in a creative way that helps the store reach out to people

(if its not a, then its d)

6 0
3 years ago
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Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2,840 cost. On Janu
AVprozaik [17]

Answer:

Onslow Co.

Journal Entries:

1. Jan. 2: Debit Equipment $178,000

Credit Cash $178,000

To record the cash payment for equipment purchase.

2. Jan. 3: Debit Equipment $4,000

Credit Cash $4,000

To record the cash payment for readying the equipment for use.

3. Dec. 31: Debit Depreciation Expense $28,000

Credit Accumulated Depreciation $28,000

To record depreciation expense for the first year.

4. Dec. 31, Year 5: Debit Equipment Disposal$178,000

Credit Equipment $178,000

To transfer the equipment account to the Equipment Disposal account.

Debit Accumulated Depreciation $140,000

Credit Equipment Disposal $140,000

To transfer accumulated depreciation to the Equipment Disposal account.

a) Debit Cash $15,000

Credit Equipment Disposal $15,000

To record the cash proceeds from sale of equipment.

Debit Loss on Sale of Equipment $23,000

Credit Equipment Disposal $23,000

To record the loss on Equipment Disposal.

b) Debit Cash $50,000

Credit Equipment Disposal $50,000

To record the cash proceeds from sale of equipment.

Debit Sale of Equipment $12,000

Credit Gain on Sale of Equipment $12,000

To record the gain on Equipment Disposal.

c) Debit Cash $30,000

Credit Equipment Disposal $30,000

To record the cash proceeds from insurance company.

Debit Loss on Disposal $8,000

Credit Equipment Disposal $8,000

To record the loss on Equipment Disposal.

Explanation:

a) Data and Calculations:

January 2: Cost of used machine = $178,000

January 3: Readying costs = $4,000 ($2,840 + $1,160)

Estimated useful life = 6 years

Estimated salvage value = $14,000

Depreciable amount = $168,000 ($182,000 - $14,000)

Depreciation method = straight-line method

Annual depreciation expense = $28,000 ($168,000/6)

Accumulated depreciation at December 31, Year 5 = $140,000 ($28,000*5)

Disposal date = December 31, Year 5

Journal Entries Analysis:

1. Jan. 2: Equipment $178,000 Cash $178,000

2. Jan. 3: Equipment $4,000 Cash $4,000

3. Dec. 31: Depreciation Expense $28,000 Accumulated Depreciation $28,000

4. Dec. 31, Year 5: Equipment Disposal $178,000 Equipment $178,000

Accumulated Depreciation $140,000 Equipment Disposal $140,000

a) Cash $15,000 Equipment Disposal $15,000

Loss on Sale of Equipment $23,000 Equipment Disposal $23,000

b) Cash $50,000 Equipment Disposal $50,000

Equipment Disposal $12,000 Gain on Sale of Equipment $12,000

c) Cash $30,000 Equipment Disposal $30,000

Loss on Disposal $8,000 Equipment Disposal $8,000

5 0
3 years ago
Char and Russ Dasrup have one daughter,Siera.who is 16 years old.ln November of last year,the Dasrup's took in Siera's 16 year o
Naddik [55]

Answer:

A) One exemption for their daughter Siera as a qualifying child but no exemption for Angela.

Explanation:

The six IRS requirements for determining a qualifying child are:

  1. Relationship
  2. Age
  3. Residence
  4. Support
  5. Joint return
  6. Citizenship

The problem with Angela is that she fails number 1, which means that she has no legal relationship with the Dasrups. She would qualify for the remaining 5, but if only one is missing, then the IRS will not qualify Angela.

On the other hand, Siera qualifies because she meets all the requirements.  

3 0
3 years ago
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