ACCT 3221 Chapter : Chapter Two Questions And Answers
Document Summary
General and accounting concepts (and constructs: jeromy receives a tax credit for child care. The credit was earned because of jeromy"s expenditures for day care for his daughter while jeromy worked. Jeromy receives this tax credit: the ability-to-pay concept explains why jeromy receives this tax credit, bowow company allows its employees to make personal xerox copies without charge on the company copy machines. What concept helps explain why the benefit received is not taxable to. Bowow employees: the administrative concept explains why the benefit received is not taxable to bowow employees, glenda sells 100 shares of icbm stock to her brother for ,000. Glenda is not allowed to deduct the loss realized on the sale of the stock shares. What concept applies to this event: the arm"s-length transaction concept applies, doria sells a van to a corporation in which she is a 40% stockholder. She realizes a loss of ,500 on the sale.
