ulies company operates in New Mexico, where businesses are subject to a state gross-

receipts tax. This tax can range in amount from 5.125% to 9.25%, depending on the businesss

locale. The tax is imposed on a businesss gross receipts, or the total amount of money or value

of other consideration received from conducting its activities.

1

Julie needs your help determining

whether this gross-receipts tax is within the scope of

ASC 740