A municipality uses the allowance method to record uncollectible property taxes. If it decides to write off an account as uncollectible, it should:
a. debit bad debts expenditures; credit allowance for uncollectible property taxes
b. debit allowance for uncollectible property taxes; credit property taxes receivable
c. debit allowance for uncollectible property taxes; credit property tax revenues
d. debit property tax revenues; credit property taxes receivable
b
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In a ________-managed LLC, the members designate a group of people to manage the firm. The group can consist of members, non-members or both.
Fill in the blank(s) with the appropriate word(s).
Juan names his sister, Silvia, as the beneficiary of his $250,000 life insurance policy. At Juan's death, if Silvia chooses to have the proceeds paid over time, rather than in a lump sum,
A) none of the proceeds will be taxable as long as Silvia rolls them into a permanent life insurance policy B) the original death benefit is taxable and the interest is tax-free C) the original death benefit is not taxable; however, interest earned is taxable as ordinary income to Silvia D) the entire death benefit will be taxed