A is corrent. Annual period expenses should be allocated among the interim periods clearly benefited through the use of accruals and/or deferrals. Property taxes should be reflected each quarter. However, April 2010 repairs only benefit operations for the remaining three quarters of the calendar year. This is summarized in the following table: | | Q1 | Q2 | Q3 | Q4 | | Taxes | $15,000 | $15,000 | $15,000 | $15,000 | | Repairs | 0 | 80,000 | 80,000 | 80,000 | | Totals | $15,000 | $95,000 | $95,000 | $95,000 |
B is incorrect. Annual period expenses should be allocated among the interim periods clearly benefited through the use of accruals and/or deferrals. Property taxes should be reflected each quarter. However, April 2010 repairs only benefit operations for the remaining three quarters of the calendar year. This is summarized in the following table: | | Q1 | Q2 | Q3 | Q4 | | Taxes | $15,000 | $15,000 | $15,000 | $15,000 | | Repairs | 0 | 80,000 | 80,000 | 80,000 | | Totals | $15,000 | $95,000 | $95,000 | $95,000
|
C is incorrect. Annual period expenses should be allocated among the interim periods clearly benefited through the use of accruals and/or deferrals. Property taxes should be reflected each quarter. However, April 2010 repairs only benefit operations for the remaining three quarters of the calendar year. This is summarized in the following table: | | Q1 | Q2 | Q3 | Q4 | | Taxes | $15,000 | $15,000 | $15,000 | $15,000 | | Repairs | 0 | 80,000 | 80,000 | 80,000 | | Totals | $15,000 | $95,000 | $95,000 | $95,000
|
D is incorrect. Annual period expenses should be allocated among the interim periods clearly benefited through the use of accruals and/or deferrals. Property taxes should be reflected each quarter. However, April 2010 repairs only benefit operations for the remaining three quarters of the calendar year. This is summarized in the following table: | | Q1 | Q2 | Q3 | Q4 | | Taxes | $15,000 | $15,000 | $15,000 | $15,000 | | Repairs | 0 | 80,000 | 80,000 | 80,000 | | Totals | $15,000 | $95,000 | $95,000 | $95,000
|
|
