Rogue Corp. has sales of $4,250,000; the firm's cost of goods sold is $2,500,000; and its total
operating expenses are $600,000. The firm's interest expense is $250,000, and the corporate tax rate
is 40%. What is Rogue's tax liability?
A) $600,000 B) $360,000 C) $260,000 D) $258,000
B
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A TV commercial invites people to attend a service at a so-called "mega-church" that has a huge steel and glass structure with acres of parking. This is an example of ________
A) idea marketing B) people marketing C) place marketing D) the market fulfillment approach E) the product fulfillment approach
Which of the following is true of shopping center leases?
A) There is an implied warranty of habitability B) The tenant usually bears the cost of improvements C) Common maintenance fees are illegal D) None of the above
Which is not a way that the analyst can inspect a record?
A) checking for consistency in report font types and logo placement B) looking for opportunities for improving the recording form design C) observing the number and type of transactions D) watching for instances where the computer can simplify the work
Scranton Extruded Plastics is a company involved in the injection molding process of plastic extruders. The company had a process of inspection, checking line work, and handling returns from customers to identify and correct quality problems. Scrapped extruders are ground into powder and fed back to the extruders as raw material; thus, all scrapped extruders are reused at some point. The company's cost accounting system indicates that the cost of scrap is "zero," a view also held by Scranton's management. (Source: "Activity Based management" by Peter B. B. Turney published in Management Accounting)Required:a) Comment on the view that scrap costs is zero at Scranton Extruded Plastics.b) Identify internal and external failure activities that were required by Scranton.c) Identify prevention
and appraisal activities that could have been employed. What will be an ideal response?