Answer:
The correct answer is letter "D": participated in business activities for more than 100 hours during the tax year and the participation was not less than the activity of any other individual's during the tax year.
Explanation:
Material Participation Tests are principles the Internal Revenue Service (IRS) considers at the moment of qualifying an individual as being part of an income-producing activity. There are seven (7) tests taken into consideration by the IRS but only one requirement is necessary for qualification. Among them, test three (3) states that <em>an individual qualifies if that person was involved for more than 100 hours and not less than any other individual in the firm</em>.
Answer:
$414,000
Explanation:
Calculation of balance of cash account:
Issuance of capital stock to the $648,000
owners of the corporation
Cash down payment for purchase ($170,000)
a piece of lane
Cash payment on the note payable <u>($64,000)</u>
from the purchase of land
Balance in the Cash account $414,000
at the end of May
All of these is your answer
Answer:
The answer is: $106,650
Explanation:
The total warranty cost for Alvarado Company are $395 per machine x 540 machines = $213,300.
Since only half of those warranty costs occur during 2014, then the warranty liability account for 2014 should equal half the total warranty costs = 50% x $213,300 = $106,650
