Answer: c. Cost of Goods Sold $9,500 $9,500 Inventory.
Explanation:
The journal entries that is required on December 31 to adjust the ending balance of inventory if the direct method is used to record the lower of cost or market write down will be gotten as the difference between the historical cost of the ending inventory and the current replacement cos of inventory. This will be:
= $316000 - $306500
= $9500
Therefore, the journal entry will be:
Debit: Cost of Goods Sold $9,500
Credit: Inventory $9,500.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Special one-time order for 15,000 bird feeders at $3 per unit.
Variable cost= $2.25
<u>Because it is a special offer and there is unused capacity, we will not have into account the fixed costs.</u>
Effect on income= 15,000*(3 - 2.25)= $11,250 increase.
Answer:
The stock price is 38.63
Explanation:
We use the gordon model to calculate the horizon value and with htat the value of the stock:

D1 = 2.60 x 1.04 = 2.704
rate of return 11% = 0.11
grow rate = 4% = 0.04

P0 = 38.62857143
The taxes should be ignored as the gordon model do not include them in the calculations
Answer:
iii.Income earned on T-bills is exempt from state and local taxes.
Explanation:
Some staes might require that require that income earned from T-bills be reported regardless of the tax exempt status.
Answer:
c. $6,076
Explanation:
Calculation for what Alison should record the purchase
Purchase=$6,200 ×(100%-2%)
Purchase=$6,200 ×98%
Purchase=$6,076
Therefore if Alison uses the net method to record purchases she should record the purchase at:$6,076