Paul incurred circulation expenditures of $180,000 in 2017 and deducted that amount for regular income tax purposes. Paul has a $60,000 negative AMT adjustment for each of 2018, 2019, and for 2020
a. True
b. False
Indicate whether the statement is true or false
False
RATIONALE: The AMT adjustment in the year circulation expenditures are incurred is positive. The adjustment is negative in the two subsequent years. Paul's negative adjustment for 2018 and 2019 is $60,000 ($0 deduction for regular income tax purposes – $60,000 deduction for AMT purposes). There is no AMT adjustment then in 2020.
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As with male entrepreneurs, many women start a business because they have a good business idea
Indicate whether the statement is true or false
What are the equivalent units for direct materials and conversion costs, respectively, for June?
Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weighted-average costing. Data for the Assembly Department for June 2015 are: Work in process, beginning inventory 300 units Direct materials (100% complete) Conversion costs (50% complete) Units started during June 950 units Work in process, ending inventory: 150 units Direct materials (100% complete) Conversion costs (75% complete) Costs for June 2015: Work in process, beginning inventory: Direct materials $90,000 Conversion costs $135,000 Direct materials costs added during June $600,000 Conversion costs added during June $400,000 A) 1,250 units; 1,210.64 units B) 1,250 units; 1,212.5 units C) 1,100 units; 1,100 units D) 1012 units; 1040 units