Pl:6-42 (similar to) EQuestion Help accounting. Its tax year is the calendar year. The following are three of the corporation's transactions during the current year Showman Corporation, a computer vendor and consulting company, uses the accrual method (Click the icon to view the transactions.) Read the requirements Requirement a. How should Showman Corporation treat these transactions? What rules apply? (Enter a "O" if none of the expense can be deducted.) 1. Showman Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30. On December 15, Showman received a $56,000 bill from the contractor. Showman immediately contacted the contractor to contest $9,000 of the total charges, arguing that it exceeded the price that was agreed upon. Showman didn't make any payment on the bill during its current tax year. What rules apply? Amount deductible in Neither the economic performance, nor the all-events test have been met Only a portion of the economic performance test has been met. Only the all-events test has been met. The economic performance and a portion of the all-events tests have been met More Info i sales floor. The contractor completed the remodeling on 1. Showman Corporation hired a contractor to remodel November 30. On December 15, Showman received a $56,000 bill from the contractor. Showman immediately contacted the contractor to contest $9,000 of the total charges, arguing that it exceeded the price that was agreed upon. Showman didn't make any payment on the bill during its current tax year. 2. Showman offers a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $13,000 to service warranties during the current tax year, and it expects to pay $18,000 to fulfill the remaining warranty obligations next year 3. Every year, Showman offers a series of nine trade seminars from November 1 through July 31. It receives all registration fees from participants by October 1, before the seminars begin. As of December 31, two of the nine seminars are completed, and the next seminar is scheduled for January 14-15. The expenses incurred in performing the seminars are routine each year. On the first of each month from November through July, Showman pays the $450 monthly rent for the seminar location. On September 16, Showman signs a contract with the seminar teacher, a computers expert and excellent public speaker. The contract requires Showman to pay the teacher $800 after each seminar, a total of $7,200. On October 3, Showman signs a contract with a local printing company, which will provide text materials for the seminars. Showman pays the printer $300 after each seminar's materials are delivered the day before the seminar Print Done Choose from any list or enter any number in the input fields and then click Check Answer parts 4 remaining Clear All Check Answer Pl:6-42 (similar to) EQuestion Help accounting. Its tax year is the calendar year. The following are three of the corporation's transactions during the current year Showman Corporation, a computer vendor and consulting company, uses the accrual method (Click the icon to view the transactions.) Read the requirements Requirement a. How should Showman Corporation treat these transactions? What rules apply? (Enter a "O" if none of the expense can be deducted.) 1. Showman Corporation hired a contractor to remodel its sales floor. The contractor completed the remodeling on November 30. On December 15, Showman received a $56,000 bill from the contractor. Showman immediately contacted the contractor to contest $9,000 of the total charges, arguing that it exceeded the price that was agreed upon. Showman didn't make any payment on the bill during its current tax year. What rules apply? Amount deductible in Neither the economic performance, nor the all-events test have been met Only a portion of the economic performance test has been met. Only the all-events test has been met. The economic performance and a portion of the all-events tests have been met More Info i sales floor. The contractor completed the remodeling on 1. Showman Corporation hired a contractor to remodel November 30. On December 15, Showman received a $56,000 bill from the contractor. Showman immediately contacted the contractor to contest $9,000 of the total charges, arguing that it exceeded the price that was agreed upon. Showman didn't make any payment on the bill during its current tax year. 2. Showman offers a 2-year warranty on all of its computer systems. For sales of computers in the current year, it paid $13,000 to service warranties during the current tax year, and it expects to pay $18,000 to fulfill the remaining warranty obligations next year 3. Every year, Showman offers a series of nine trade seminars from November 1 through July 31. It receives all registration fees from participants by October 1, before the seminars begin. As of December 31, two of the nine seminars are completed, and the next seminar is scheduled for January 14-15. The expenses incurred in performing the seminars are routine each year. On the first of each month from November through July, Showman pays the $450 monthly rent for the seminar location. On September 16, Showman signs a contract with the seminar teacher, a computers expert and excellent public speaker. The contract requires Showman to pay the teacher $800 after each seminar, a total of $7,200. On October 3, Showman signs a contract with a local printing company, which will provide text materials for the seminars. Showman pays the printer $300 after each seminar's materials are delivered the day before the seminar Print Done Choose from any list or enter any number in the input fields and then click Check Answer parts 4 remaining Clear All Check