Bryans Corporation has provided the following data for its two most recent years of operation: Selling price per unit$53Manufacturing costs: Variable manufacturing cost per unit produced: Direct materials$13Direct labor$6Variable manufacturing overhead$5Fixed manufacturing overhead per year$63,000 Selling and administrative expenses: Variable selling and administrative expense per unit sold$4Fixed selling and administrative expense per year$71,000 Year 1 Year 2Units in beginning inventory0 3,000Units produced9,000 7,000Units sold6,000 7,000Units in ending inventory3,000 3,0000 The net operating income (loss) under absorption costing in Year 1 is closest to:
A. $37,000
B. $108,000
C. $132,000
D. $16,000
Answer: A
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On April 2, Reid Inc., a calendar year taxpayer, paid a $750,000 lump-sum price to purchase a business. The appraised FMVs of the balance sheet assets were:Accounts receivable?$ 38,000??Inventory?415,000??Fixtures and equipment? 147,000????$ 600,000??Which of the following statements is false?
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