Answer:
False
Explanation:
Currently the company is working at full capacity and they are selling their total production at $25 per unit. If they accepted the special order, they would be receiving less money per unit sold: normal price per unit - special order price = $25 - $13 = $12, so they would be losing $12 per unit sold. The only way that they could accept this special order is if they can work overtime and produce 31,000 units instead or 30,000.
Examples of current liabilities include:
1. accounts payable
2. taxes
3. Interest payable
4. Accrued expenses.
Current liabilities are those expenses due within 12 months or less. All other liabilities are reported as long-term liabilities. For a business, they must have enough current assets (cash, sales) to cover current liabilities.
Answer:
E&P $1,200,000 × 25%= $300,000 reduction
Crane Corporation would reduce its E & P in the amount of $300,000 as a result of the redemption.
This represents a 25% decrease in the amount of the E & P corresponding to the 25% stock redemption.
When a stock redemption results in sale or exchange treatment for the shareholder, the E & P account of a corporation is reduced in an amount not in excess of the ratable share of the E & P of the distributing corporation attributable to the stock redeemed.
As such, none of the expense of $13,000 of accounting and legal fees or other is deductible.
Answer:
Similarities between Free Market Economy and Command Economy
Both economies have similar economic players including consumers and producers, services and goods and money and labor.
