Introduction: The Internal Revenue Service (IRS) has a wide range of functions and responsibilities such as look after of administration of federal taxes, and to perform duties like estimating, determining, and collecting taxes in the form of revenue to the government, it also performs tax return audits and imposes penal provisions. It is the office within the revenue department. The task of the department is to provide the taxpayers with quality service by assisting them in proving knowledge content so the taxpayers understand their tax responsibility and pay taxes timely. It is important in maintaining and establishing tax laws.
To choose: The way in which returns are selected for audit purposes.
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- If a company has sales revenue of $120,000, cost of goods sold of $70,000, and operating expenses of $20,000, what is the net income? Financial Accountingarrow_forwardA company’s beginning inventory is $13,000, purchases during the period are $33,000, and the ending inventory is $9,500. What is the cost of goods sold (COGS)? General Accountingarrow_forwardData for the two departments of Kimble & Pierce Company for June of the current fiscal year are as follows: Drawing Department Winding Department Work in process, June 1 Completed and transferred to next 7,400 units, 30% completed 2,900 units, 60% completed 101,400 units 100,400 units processing department during June Work in process, June 30 5,600 units, 75% completed 3,900 units, 30% completed Production begins in the Drawing Department and finishes in the Winding Department. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for June for the Winding Department.arrow_forward
- Myrna and Geoffrey filed a joint tax return in 2017. Their AGI was $85,000, and itemized deductions were $13,700, which included $4,000 in state income tax. In 2018, they received a $1,800 refund of the state income taxes that they paid in 2017. The standard deduction for married filing jointly in 2017 was $12,700. Under the tax benefit rule, how much of the state income tax refund is included in gross income in 2018?(General Account)arrow_forwardAssume the company uses variable costing. Determine its product cost per unit.arrow_forwardAnnenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,400 units. The costs and percentage completion of these units in the beginning inventory were: Cost Percent Complete Materials costs $ 7,700 65% Conversion costs $ 8,800 45% A total of 10,500 units were started and 7,900 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 1,27,500 Conversion costs $2,09,000 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department?arrow_forward
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