Danforth Inc. has some financial transactions occurring in 2021 that result in future taxable amounts.  Which of the following item results in future taxable amounts?   Question 20 options:   a)  $95,000 of subscription magazine revenue that is received in 2021 by Danforth and relates to magazines shipped to customers in 2022.   b)  $19,00 of prepaid rent that is paid by Danforth to another entity in 2021 but will be used in 2022.    c)  $25,000 of interest received by Danforth from municipal bonds.   d)  $72,000 of salaries and wages that are recorded by Danforth as an expense in 2021 but not paid until 2022.

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
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Danforth Inc. has some financial transactions occurring in 2021 that result in future taxable amounts.  Which of the following item results in future taxable amounts?

 

Question 20 options:

 

a) 

$95,000 of subscription magazine revenue that is received in 2021 by Danforth and relates to magazines shipped to customers in 2022.

 

b) 

$19,00 of prepaid rent that is paid by Danforth to another entity in 2021 but will be used in 2022. 

 

c) 

$25,000 of interest received by Danforth from municipal bonds.

 

d) 

$72,000 of salaries and wages that are recorded by Danforth as an expense in 2021 but not paid until 2022.

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