_____ In January 2006, Nollex paid property taxes of $20,000 covering the calendar year 2006. Also in January 2006, Nollex estimated tht its year-end bonuses to factory workers would be $80,000 for 2006. In Nollex's quarterly income statement for the three months ended 3/31/06, what is the total amount of expense relating to these two items that should be reported?

Question

Quizplus · Accepted Answer

The total expense reported should be $25,000, which includes $5,000 for property taxes (1/4 of the annual $20,000, since this is for a quarterly report) and $20,000 for the estimated year-end bonuses (1/4 of the $80,000, assuming the expense is evenly accrued throughout the year).

_____ in January 2006, Nollex Paid Property Taxes of $20,000