2007 #28

[Pokeytax]

This is about as basic as it gets, and yet I completely fail to understand how they are getting 895. I guess this is what I get for using past exams as study material and putting off the heavy-duty accounting.

[triplea]

This is almost exactly an example Feldblum goes through in the Sched P paper...if you briefly look that over, it is pretty straightforward.

[thetruthabout]

Part 3 doesn't include Adjusting & Other Expense, so payments in the prior years in 2006 is 490.

The 2006 entry in the prior years row is (390-250)+(765-500)=405.

405+490=895.

[Pokeytax]

With your help, I was able to do the easiest question on the exam. Thanks!