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telo118 [61]
3 years ago
8

On February 12, Goal Publishing, Inc., purchased the copyright to a book for $15,000 and agreed to pay royalties equal to 10% of

book sales, with a guaranteed minimum royalty of $60,000. Goal had book sales of $750,000 during the year. In its income statement, what amount should Goal report as royalty expense for the year
1. $ 60 000
2. $ 75 000
3. $ 76000
4. $ 90000
Business
1 answer:
Ugo [173]3 years ago
3 0

Answer:

option 2 $75,000

Explanation:

Data provided in the question:

Amount for which the copyright to a book purchased = $15,000

Agreed royalty = 10% of the book sales

Minimum royalty to be paid= $60,000

Total book sales = $750,000

Now,

The Amount of royalty according to the agreement

= 10% of Total book sales

= 10% of $750,000

= $75,000

Since,

The amount the greater than the minimum royalty

Hence,

the agreement amount will be paid

i.e

option 2 $75,000

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The capital yield is the change in price since you bought the stock for instance, buying the stock at a price of $15 and it is now worth $20.

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We have assumed that the fiscal policy variables G and T are independent of the level of income. In the real​ world, however, th
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A) attached below

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attached below

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Question 3: what is the total period cost for the month under variable costing?
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beneath the variable costing technique, all promoting and administrative (constant and variable) fees and glued production overhead is taken into consideration as part of the total period fee. hence, the whole length cost for the month beneath variable costing is $344,000.

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General period expenses encompass any prices that aren't at once related to product production. prison expenses, income commissions, and office components are considered length expenses and have to be recorded as expenses on the balance sheet.

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