Question
In accords with U.S. laws and Florida tax rates, Company XYZ has received a total of $50,000 in revenue in the year of 2020. Requirement
In accords with U.S. laws and Florida tax rates, Company XYZ has received a total of $50,000 in revenue in the year of 2020.
Requirement 1. Note that in the year 2020, Company XYZ has an in-store line of credit for customers to use. The $50,000 is used as collateral. How are these transactions and accounts recorded and is the $50,000 taxed? If so, how much?
Requirement 2. In regards to Requirement 1, is the $50,000 recognized as taxable-revenue/profits if it is immediately used as collateral for their in-store credit program? If not, how is it treated and recognized as?
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
4th Canadian edition
134724712, 134724713, 9780134779782 , 978-0134724713
