Significant or Not?

December 2024

Is the REported Change Significant?

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Chickens and their eggs

Collect chicken eggs for each correct answer

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Collect your egg!

question 1/4

Piper owns and operates a campground. She calls to report that her campground will be closing on October 31. The worker asks if Piper plans on reopening her campground. Piper states that every year her campground closes on October 31 and reopens on May 1.

This is a significant change. Income must be recalculated.

This change is part of the business's normal ebb and flow. Income should not be recalculated.

Collect your egg!

This change is part of the business's normal ebb and flow. Income should not be recalculated.

This is a signficant change. Income must be recalculated.

question 2/4

Nerine owns and operates a landscaping company. Nerine calls to report that as of November 1, they no longer offer landscaping services. The worker asks if this change is a temporary change or a permanent change for the business. Nerine replies that the reported change is temporary, for they will begin landscaping again in April. The worker also asks whether Nerine’s company remains in business during the winter months. Nerine replies that their business provides snow removal services as needed.

question 3/4

Larch and Kalmia own a paper company and file taxes as a partnership. Last week, Larch fell and broke his leg. Today, he is calling to report that he will be off work for a minimum of six weeks. During his recovery, he reports that his partner will continue the day-to-day operations of the business.

While Larch's reported change is significant to his partner, it is not significant to their business. Kalmia can continue on with the day-to-day operations and the business's income will not be impacted. Collect your egg!

This change is part of the business's normal ebb and flow. Income should not be recalculated.

This is a significant change. Income must be recalculated.

question 4/4

Laurel is a licensed in-home child care provider. She normally cares for eight children, daily. Laurel calls to report that she lost her license. She now can care for only four children at a time. The change in circumstances has caused a decrease in her monthly income.

Over time, the loss of her license, and the loss of half of the children for which she cares, will impact how much income her business incurs. The worker and Laurel must also agree upon the date of the significant change - most likely the month in which Laurel lost her license. Collect your egg!

This is a significant change. Income must be recalculated.

This change is part of the business's normal ebb and flow. Income should not be recalculated.

Cluck, Cluck...

Well done! The chickens are happy!

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Cows and their milk

Milk the cows for each correct answer

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QUESTION 1/4

Cleome is a dairy farmer and normally milks 400 cows daily. Over the past three months, due to tainted feed, Cleome lost 150 of those cows. He now has only 250 cows to milk. He does not have the means in which to replace the cows in the near future.

Over time, the loss of the cows, and the loss of the milk produced by those cows, will impact how much income his business will incur. The worker and Cleome must also agree upon the date in which the loss of his cows and their milk started to impact his annual income. Milk the cow!

This is a significant change. Income must be recalculated.

This change is part of the business's normal ebb and flow. Income should not be recalculated.

QUESTION 2/4

Rue is a real estate agent who specializes in high end properties. In an average year, he sells four or five homes. In February, Rue calls to report that he has not sold a property since September of the previous year. At that time, the September property had been the fifth property he sold that year. Additionally, Rue reports that he currently has two homes on the market, although no offers for either have been made. Rue is unsure of when he will receive his next sales commission.

Note: This example could be considered significant if an economic recession was globally impacting the housing market. Milk the cow!

This is a significant change. Income must be recalculated.

This change is part of the business's normal ebb and flow. Income should not be recalculated.

question 3/4

Anemone has been a logger for several years. Generally, his business operates from October through April. On November 15, Anemone reports that he hasn’t been able to do any logging due to the weather being warmer than usual. The late start has caused a decrease in his income.

Since it is best to conduct logging activities when soil is frozen or firm, the business's operation period will vary upon local and seasonal climatic conditions. Milk the cow!

This change is part of the business's normal ebb and flow. Income should not be recalculated.

This is a significant change. Income must be recalculated.

question 4/4

Mazus has owned and ran the local donut shop for the past thirty years. On April 9, Mazus reports that as of March 31, he officially retired. The business now belongs to his daughter. Mazus reports that he will not work another day in his lifetime, but he has every intention of visiting the shop frequently to volunteer his time as a taste tester.

Over time, the selling of his business will have an impact on how much income he will incur (or not incur). The worker and Mazus must also agree upon the date of the significant change, the month in which he sold the business and officially retired. Milk the cow!

This is a significant change. Income must be recalculated.

This change is part of the business's normal ebb and flow. Income should not be recalculated.

Mmmoooo...

Well done! The cows are happy!

continue

Sheep and their wool

Shear sheep wool for each correct answer

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question 1/4

Tares reports that she was recently awarded a plumbing contract with the new apartment complex being built downtown. Tares shared that the job would take approximately nine months to complete and that she can’t wait to receive a regular paycheck again. The random on-call jobs she has been taking for the past two months were not enough to cover her bills.

Over time, the contract she just landed will have an impact on how much income she will incur. The worker and Tares must also agree upon the date of the significant change, the month paychecks are first received as a result of completed contract tasks. Shear the sheep!

This is a significant change. Income must be recalculated.

This change is part of the business's normal ebb and flow. Income should not be recalculated.

question 2/4

Privet reports on November 19 that one of her four renters has moved out. With winter coming, she is worried about getting a new renter sooner than later.

Privet still has the capacity to earn money when the fourth rental becomes re-occupied. Shear the sheep!

This change is part of the business's normal ebb and flow. Income should not be recalculated.

This is a significant change. Income must be recalculated.

question 3/4

Rose recently broke her hand. She is a personal masseuse and is fearful she will lose all her clients during the several months it will take to recover. She hopes her savings will keep her afloat until she can start doing business again.

Shear the sheep!

This change is part of the business's normal ebb and flow. Income should not be recalculated.

This is a significant change. Income must be recalculated.

Marigold owns a thrift shop. She calls to report that after speaking with her accountant, she will now be filing taxes as an S corporation, rather than a sole proprietorship. However, nothing more has changed. She still runs her business as she has in years past.

question 4/4

Tax structures calculate income differently! Shear the sheep!

This is a significant change. Income must be recalculated.

This change is part of the business's normal ebb and flow. Income should not be recalculated.

Beeeehehe...

Well done! The sheep are happy!

continue

daily chores are done!

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FInalize

You really thought through those reported changes!

Well Done!

start over?

Incorrect - Try that one again!

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