Answer:C) $2,125.
Explanation:
Interest = Principal x rate x time (period)
using days in a year = 360 days 
Interest = $85,000 X 10% x 90/360
=$2,125 
 Therefore, Alabaster Inc, must repay the $85,000 principle and $2,125 in interest
 
        
             
        
        
        
Answer:
$150,000
Explanation:
The computation of value of ending inventory under absorption costing is shown below:-
Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit
= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)
= $5 + $4 + $3 + $8
= $20
Ending Inventory in units = Units produced - Units sold
= 25,000 - 17,500
= 7,500
Cost of Ending Inventory = Total Cost per unit × Ending Inventory units 
= $20 × 7,500
= $150,000
So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.
 
        
             
        
        
        
Answer:
$61,390
Explanation:
Calculation to determine What does Engler record as the cost of the new truck
Using this formula
Cost of new truck=Purchase price+Sales tax, painting +Logo on the side of the truck +Safety testing +Tune up and oil change 
Let plug in the formula
Cost of new truck=$55,000 + $4,000 + $1,600 + $290 +$500
Cost of new truck= $61,390
Therefore what Engler will record as the cost of the new truck is $61,390