X Company develops software for sale to other entities. Costs incurred in the current year in relation to its most recent software consist of: Design of program $ 60,000 Initial coding $ 230,000 Testing program prior to achieving technological feasibility $ 35,000 Additional coding and testing after achieving technological feasibility $ 50,000 Cost of producing masters after achieving technological feasibility $ 310,000 Production of software to be sold $ 650,000 Printing of instructions and support documentation to be included with software $ 40,000 How will the above costs be accounted for

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

Interest is credited to a fixed annuity no lower than the variable contract rate contract guaranteed rate current rate of inflation prime rate

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