Taxes deducted from an employee's earnings to finance social security and medicare benefits are called FICA taxes.   ____     2.   For an interest bearing note payable, the amount borrowed is equal to the face value of the note.   ____     3.   Any costs incurred that are necessary to correct mistakes made during the installation of a new piece of equipment should be added to the cost of that asset.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Taxes deducted from an employee's earnings to finance social security and medicare benefits are called FICA taxes.

 

____     2.   For an interest bearing note payable, the amount borrowed is equal to the face value of the note.

 

____     3.   Any costs incurred that are necessary to correct mistakes made during the installation of a new piece of equipment should be added to the cost of that asset.

 

____     4.   The only depreciation method that is acceptable when submitting tax returns to the IRS is the MACRS method.

 

____    5.         When land is purchased to construct a new building, the cost of removing any structures on the land should be charged to the building account.

 

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