EBK ADVANCED FINANCIAL ACCOUNTING
11th Edition
ISBN: 8220102796096
Author: Christensen
Publisher: YUZU
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Chapter 13, Problem 13.3.3E
Multiple-Choice Questions on Interim Reporting [AICPA Adapted]
Select the correct answer for each of the following questions.
3. On January 1, 20X2, Harris Inc. paid $40,000 in property taxes on its plant for the calendaryear 20X2. In March 20X2, Harris made $120,000 in annual major repairs to its machinery.These repairs will benefit the entire calendar year’s operations. How should these expenses be reflected in Harris’s quarterly income statements?
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Dixon Development began operations in December 2021. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2021 for lots sold this way was $20 million, which will be collected over the next three years. Scheduled collections for 2022–2024 are as follows:
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Chapter 13 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
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