What measures the profitability of products that are sold?
A. Owner's equity
B. Accounts receivable
C. Gross margin
D. Shrinkage
E. Asset turnover
Answer: C
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Indicate whether the statement is true or false
Currently attainable standards do not allow for reasonable production difficulties
Indicate whether the statement is true or false
Performance bonds, warranties, and guarantees are financial instruments used to share risk.
Answer the following statement true (T) or false (F)
Renfroe, Inc. acquired 10% of Stanley Corporation on January 1, 2017, for $90,000 when the book value of Stanley was $1,000,000. During 2017, Stanley reported net income of $215,000 and paid dividends of $50,000. The book value of the 10% investment was the same as the fair value of that investment when, on January 1, 2018, Renfroe purchased an additional 30% of Stanley for $325,000. Any excess of cost over book value is attributable to goodwill with an indefinite life. During 2018, Renfroe reported net income of $320,000 and paid dividends of $50,000.How much is the adjustment to the Investment in Stanley Corporation for the change from the fair-value method to the equity method on January 1, 2018?
A. A debit of $165,000. B. A debit of $90,000. C. A debit of $16,500. D. A debit of $21,500. E. There is no adjustment.