Years 1990 1991 and 1992 in conformity with gaap ral

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Unformatted text preview: al is the beneficiary of this policy) 3,000 Group term insurance premiums paid on $10,000 life insurance policies for each of Ral's four employees (the employees' spouses are the beneficiaries) 4,000 Amortization of cost of acquiring a perpetual dealer's franchise (Ral paid $48,000 for this franchise on July 1, 1989, and is amortizing it over a 48-month period) 6,000 Contribution to a recognized, qualified charity (this contribution was authorized by Ral's board of directors in December 1989, to be paid on January 31, 1990) 75,000 On December 1, 1989, Ral received advance rental of $27,000 from a tenant for a three-year lease commencing January 1, 1990 to cover rents for the years 1990, 1991, and 1992. In conformity with GAAP, Ral did not include any part of this rental in its income statement for the year ended December 31, 1989. What amount should Ral deduct for keyman and group life insurance premiums in computing taxable income for 1989? a. $0 b. $3,000 54 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 c. $4,000 d. $7,000 CPA-02215 Explanation Choice "c" is correct. Ral should de...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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