【正文】 claim of right 9 Accrual method: who must use? New 10 Accounting method: required method Unchanged 10 11 Accounting method: required method Unchanged 12 Accounting method: required method Unchanged 12 13 Accounting method: farming Unchanged 13 14 Accrual method: allevents test Unchanged 14 15 Accrual method: allevents test and economic New performance test 16 Accrual basis: economic performance and all events Unchanged 16 17 Economic performance: recurring items New 18 Economic performance: matching Unchanged 18 19 Economic performance and all events tests Unchanged 19 20 Accrual method: reserves New 21 Accounting method: change New 22 Accounting method: change Unchanged 22 23 Accounting method: change Unchanged 23 24 Accounting method: change Unchanged 24 25 Accounting method: change Modified 25 26 Installment method: eligibility Unchanged 26 27 Installment method: eligibility Unchanged 27 28 Installment method: eligibility Unchanged 28 29 Installment method: contract price and depreciation New recapture 30 Installment method: depreciation recapture Unchanged 30 31 Installment method: calculations Unchanged 31 32 Installment method: calculations Unchanged 32 33 Installment method: calculations Modified 33 34 Installment method: calculations Unchanged 34 35 Installment method: calculations Unchanged 35 36 Installment method: calculations Unchanged 36 37 Installment method: calculations Unchanged 37 38 Installment method: imputed interest New Status: Q/P Question/ Present in Prior Accounting Periods and Methods 163 Problem Topic Edition Edition 39 Installment method: imputed interest Unchanged 39 40 Installment method: related parties Unchanged 40 41 Installment method: related parties Unchanged 41 42 Installment method: related parties Unchanged 42 43 Installment method: related parties Unchanged 43 44 Installment method: disposition of installment Unchanged 44 obligations 45 Installment method: disposition of installment New obligations 46 Installment method: interest on deferred taxes Unchanged 46 47 Longterm contracts: pleted contract method Unchanged 47 48 Percentage of pletion method Unchanged 48 49 Percentage of pletion method and lookback Unchanged 49 50 Percentage of pletion method and lookback Modified 50 PROBLEMS 1 Tax year: personal service corporation Unchanged 1 2 Claim of right Unchanged 2 3 Installment method: disposition of installment Unchanged 3 obligations 4 Change in accounting period Unchanged 4 5 Installment method Unchanged 5 ESSAY 1 Longterm contracts Unchanged 1 2 Change in accounting method Unchanged 2 3 Installment sales: interest versus principal Unchanged 3 4 Tax benefit rule and 167。 481 adjustment and $7,500 must be added to taxable ine for each year 2020, 2020, 2020, and 2020. Accounting Periods and Methods 169 ANS: T The positive 167。S must use a tax year ending September 30th. d. Gamp。 481 adjustment. Since the change in accounting method is involuntary, a positive adjustment must be included in gross ine in the year of the change in accounting method. So the amount of the 167。161 CHAPTER 16 ACCOUNTING PERIODS AND METHODS Instructor: The test items in both the print Test Bank and ExamView testcreation software are numbered by question type within each chapter. Thus, users of ExamView can more easily preview their selections using the printed Test Bank in the same numbering system. Learning Objective, Level of Difficulty, Estimated Time to Completion, and the AACSB’s and AICPA’s Core Competencies for each test item are located within the item itself. Status: Q/P Question/ Present in Prior Problem Topic Edition Edition TRUE OR FALSE 1 Tax year: personal service corporation Unchanged 1 2 Tax year: C corporation Unchanged 2 3 Tax year: S corporation Unchanged 3 4 Tax year: partnership Unchanged 4 5 Tax year: partnership and principal partner Unchanged 5 6 Tax year: partnership and majority interest partners New 7 Tax year: partnership and least aggregate deferral Unchanged 7 method 8 Tax year: PSC and natural business year New 9 Tax year: partnership business purpose Unchanged 9 10 Tax year: personal service corporation Unchanged 10 11 Short tax year Unchanged 11 12 Tax year: annualization New 13 Tax year: annualization Unchanged 13 14 Restoration of amounts received under a claim New of right 15 Accounting method: cash versus accrual New 16 Cash method: oneyear rule Unchanged 16 17 Electing an accounting method: multiple businesses Unchanged 17 18 Allevents test for deductions Unchanged 18 19 Accounting method: cash versus accrual Unchanged 19 20 Change in accounting method: 167。 481 adjustments, and the accounts payable for the inventory is a negative 167。S must use a tax year ending December 31st. c. Gamp。 481 adjustment can be spread over the current and three succeeding tax years. PTS: 1 DIF: 1 REF: p. 1618 | p. 1619 OBJ: 3 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 5 min 22. A cash basis taxpayer sold investment land in 2020. He received $35,000 in the year of sale and $105,000 in 2020. The cost of the land was $100,000. Under the installment method, the taxpayer would report a $10,000 gain in 2020. ANS: T The recognized gain for 2020 is calculated as follows: PTS: 1 DIF: 1 REF: p. 1619 | p. 1620 OBJ: 4 NAT: AICPA FNMeasurement | AACSB Analytic MSC: 5 min 23. In the case of a sale reported under the installment method, each dollar collected is in part a recovery of cost and in part a taxable gain. ANS: T The gain is apportioned to each tax year in