Answer:
C. LIFO liquidation
Explanation:
Benson Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. In its footnotes, Benson Company is required to report the amount at which inventories would have been reported under FIFO method.
The difference between these two numbers is commonly referred to as LIFO Reserve.
LIFO reserve represents the difference in ending inventory using LIFO and ending inventory if FIFO were employed instead.
Third option is the correct option.
LIFO reserve = FIFO inventory cost - LIFO inventory cost
FIFO inventory cost = LIFO inventory cost + LIFO reserve
Answer:
See below
Explanation:
Given the above information, first we'll compute net proceeds
Cash received $7,200,000 × 86%
$6,192,000
Add:
Due from factors $7,200,000 × 9%
$648,000
Less;
Recourse obligation
($5,000)
Net proceeds
$6,835,000
Answer:
B) $7
Explanation:
The computation of the consumer surplus is shown below:
Consumer surplus = Willing to pay - Market price
For Austin, The consumer surplus = $10 - $6 = $4
For Erin, The consumer surplus = $9 - $6 = $3
So, the total consumer surplus = $4 + $3 = $7
Simply we deduct the market price from the willing to pay so that the consumer surplus can be computed
Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.
Answer: c. Do not include the normal costs of commuting
Explanation: deductible expenses do not include the normal costs of commuting. Deductible expenses can be subtracted from a company's income before it is subject to income tax. Therefore they reduce tax liability. Utilities, wages, rent, auto expenses, meals and entertainment, some business expenses such as advertising, employee benefits, insurance etc. are examples of expenses that can be deducted from a company's income.
