Xenon, LLC is a partnership, for tax purposes, with a C corporation member. Xenon has three year average annual gross receipts of $24 million from the retail sale of merchandise. Xenon may use the cash method for all purposes of tax reporting, without limitation. Select one: True False   Digital Video Recorders is an accrual method taxpayer that uses the calendar year as its tax year. Digital offers customers a refund if they are not satisfied with their products. During X1, 100 customers request a refund of the $500 purchase price. Digital refunds $30,000 on or before September 15, X2. It refunds the remaining $20,000 in October X2. If Digital adopts the recurring item exception with respect to the refunds, economic performance is treated as having occurred in X1 for the $50,000 refunded in X1. Select one: True False

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Xenon, LLC is a partnership, for tax purposes, with a C corporation member. Xenon has three year average annual gross receipts of $24 million from the retail sale of merchandise. Xenon may use the cash method for all purposes of tax reporting, without limitation.

Select one:

True

False

 

Digital Video Recorders is an accrual method taxpayer that uses the calendar year as its tax year. Digital offers customers a refund if they are not satisfied with their products. During X1, 100 customers request a refund of the $500 purchase price. Digital refunds $30,000 on or before September 15, X2. It refunds the remaining $20,000 in October X2. If Digital adopts the recurring item exception with respect to the refunds, economic performance is treated as having occurred in X1 for the $50,000 refunded in X1.

Select one:

True

False 

 

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