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Unformatted text preview: rect. These percentages are applicable to individuals (50% cash and 30%
Choice "d" is incorrect, per the above rule. 50
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 CPA-02205 Type1 M/C 102. CPA-02205 A-D Nov 89 II #45 Corr Ans: B PM#8 R 3-99 Page 18 Kell Corp.
Income statement for the year ended December 31, 1988:
Cost of sales
Gain on sale of investments
Life insurance policy proceeds
Income before income tax $900,000
78,000 28,000 8,000
$ 70,000 Included in Kell's operating expenses were the following life insurance premiums:
Term life insurance premiums paid on the
life of Kell's controller, with Kell as
owner and beneficiary of the policy
Group-term life insurance premiums paid
on employees' lives, with the
employees' dependents as owners and
beneficiaries of the policies $ 2,000 18,000 In its 1988 income tax return, what amount...
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