Answer:
$88,000
Explanation:
We know that
The operating profit = Revenues - cost
= $2,600,000 - $2,100,000
= $500,000
If there is increase, so the operating profit would be
= Revenues - cost
where
Revenues = $2,600,000 + $260,000
= $2,860,000
Cost = $2,100,000 + $172,000
= $2,272,000
So, operating profit is
= $2,860,000 - $2,272,000
= $588,000
So, the increase in operating profit would be
= $588,000 - $500,000
= $88,000
Answer: 1 E, 2 C, 3 A, 4 F, 5 D, 6 B
Explanation:
Purchase requisition - A document used by department managers to inform the purchasing department to place an order with a vendor.
Purchase order - A document used to place an order with a vendor that authorizes the vendor to ship ordered merchandise at the stated price and terms.
Invoice - An itemized statement of goods prepared by the vendor listing the customer's name, items sold, sales prices, and terms of sale.
Receiving report - A document used to notify the appropriate persons that ordered goods have arrived, including a description of the quantities and condition of the goods.
Invoice approval - A checklist of steps necessary for the approval of an invoice for recording and payment; also known as a check authorization.
Voucher - An internal file used to store documents and information to control cash disbursements and to ensure that a transaction is properly authorized and recorded.
Answer: $107,600 ordinary gain and $530,400 Section 1231 gain
Explanation:
Section 1231 property is when a business property that's either real or depreciable is held for more than one year. It should be noted that section 1231 gain which arises when the property is sold will be taxed at lower capital gains tax rate which is versus the ordinary income rate.
Therefore, Kuong should characterize the $638,000 gain recognized on sale as $107,600 ordinary gain and $530,400 Section 1231 gain.
The correct option is C.
