ACCT 505

ACCT 505 FEDERAL TAX FINAL EXAM Federal Taxes and Decisions Final Exam – Professor Abner TRUE-FALSE QUESTIONS—CHAPTER 10 1. Terry Trumbull purchased a tract of land. In order to have city water, he had to pay the water company $5,000 to extend the water line to his property. The $5,000 cost is an addition to the basis of the land. 2. When property that is subject to an existing debt is purchased, the basis of the property is the amount of cash paid initially plus the unpaid debt...

ACCT 505 Final Exam 1. A good example of a common cost which normally could not be assigned to products on a segmented income statement except on an arbitrary basis would be: A) product advertising outlays. B) salary of a corporation president. C) direct materials. D) the product manager's salary. 2.Turnover is computed by dividing average operating assets into: A) invested capital. B) total assets. C) net operating income. D) sales. 3.A segment of a business responsible for both ...