These items are taken from the financial statements of longhorn co. at december 31, 2017. buildings $105,800 accounts receivable 12,600 prepaid insurance 3,200 cash 11,840 equipment 82,400 land 61,200 insurance expense 780 depreciation expense 5,300 interest expense 2,600 common stock 60,000 retained earnings (january 1, 2017) 40,000 accumulated depreciation—buildings 45,600 accounts payable 9,500 notes payable 93,600 accumulated depreciation—equipment 18,720 interest payable 3,600 service revenue 14,700 prepare a classified balance sheet. assume that $13,600 of the note payable will be paid in 2018.

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