Answer:
Net income under absorption costing would be $ 250,000
Explanation:
Mortech Company
Net Income variable costing $250,000
Variable Costing Absorption Costing
Sales Sales
Less Variable Costs Less Product Costs ( Variable + Fixed)
Contribution Margin Gross Profit
Less Fixed Costs Less Period Costs ( Variable +fixed)
Net Profit Net Profit
Net income under both the methods remains the same unless there is a difference in fixed costs for certain items.
Answer:
Murphy Company
The year in which Murphy recognizes the income is year 2.
Explanation:
As a cash basis taxpayer, Murphy Company reports income and deductions in the year that they are actually paid or received. Similarly, as a cash basis taxpayer, Murphy Company deducts expenses in the year the expenses are paid off, which is not necessarily the year they were incurred. The income for services of $9,000 rendered to a customer, for which payment was received on January 3, year 2, will be recognized in year 2 and not in year 1 when the services were performed.
Answer: The correct answer is "goes up".
Explanation: If a foreign currency <u>GOES UP</u> relative to the U.S. dollar, Americans must pay more for goods and services bought from sellers in the country that issues the currency.
This happens because the value of the currency of the foreign country increases in relation to the US dollar, therefore the goods and services of that foreign country will cost more for the Americans.
Cant produce much for trade
Answer:
Option (C) 160,000
Explanation:
Data provided in the question:
Appraisal value = $154,000
Offer price = $172,000
Cash = $40,000
Note payable = $45,000
Mortgage amount = $75,000
Now,
Cost basis recorded in the buyer's accounting records to recognize this purchase will be
= Cash + Note payable + Mortgage amount
= $40,000 + $45,000 + $75,000
= $160,000
Hence,
Option (C) 160,000
