Brockmeyer, Inc. purchased some equipment on January 1, 2016, for $300,000 that had a five-year useful life and no salvage value. Brockmeyer used double-declining-balance depreciation for both financial reporting and income tax purposes. On January 1, 2018, Brockmeyer changed to the straight-line depreciation method for this equipment and can justify the change. Brockmeyer will continue to use double-declining balance depreciation for income tax reporting. Brockmeyer's income tax rate is 30%. Assuming Brockmeyer's 2018 income before depreciation and tax is $800,000, what is the amount of Brockmeyer's net income for 2018?
A. $534,800
B. $570,800
C. $764,000
D. $800,000
Answer: A
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A. Automated replenishment system B. Collaborative planning, forecasting, and replenishment (CPFR) C. Point-of-sale (POS) D. Electronic data interchange (EDI) system E. Universal Product Code (UPC) system
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Indicate whether the statement is true or false
Kessen Inc.'s bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price?
A. $923.22 B. $946.30 C. $969.96 D. $994.21 E. $1,019.06
Answer the following statements true (T) or false (F)
1. As top level managers get older they are less likely to take risks and are not as concerned about short term gratification. 2. As the level of experience of the top level managers increase, the likelihood of the top level managers commit fraud also increases. 3. Under the cookie jar system, management will build up financial reserves in profitable years and release the financial reserves into the financial statements during unprofitable years. 4. Off-balance sheet financing creates separate legal entities from the parent company. 5. Earnings management is the purposeful intervention in the process of reporting income numbers with the objective of dampening the fluctuations of those numbers around their trend.