contestada

Greenville Industries uses the accrual basis to account for all sales transactions. Sales for 2018 total $ 600 comma 000. Included in this amount is $ 15 comma 000 in receivables from sales on installment. Installment sales are considered revenue for book​ purposes, but not for tax purposes. Operating expenses total $ 150 comma 000 and are treated the same for book and tax purposes. What is​ Greenville's tax basis in the installment sale​ receivable?

Respuesta :

Answer:

The correct answer to the following question will be "$0".

Explanation:

As we know the given expenses and sales are:

  • Year 2018 sale = $600
  • Operating expenses = $150

Such that the tax base for Greenville throughout the deferred revenue installment sale would be $0 because according to the details given Installment or obligations sales are regarded income mostly for book transactions and not just for taxation purposes.

Therefore the above is the right answer.

Otras preguntas