Eliminating a wholesaler from a marketing channel will
A. cut costs and lower prices.
B. not eliminate the functions performed by that wholesaler.
C. eliminate the functions performed by that wholesaler.
D. lead to lower costs but higher prices.
E. reduce channel conflict.
Answer: B
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The Chuck Company purchased a truck on January 1, 2016. The truck cost $106,000 and was expected to have a residual value of $14,000 at the end of 2018. Chuck uses the 150%-declining-balance depreciation method. What amount of depreciation should Chuck record on the truck in 2016?
A) $53,000 B) $30,667 C) $35,333 D) $46,000
Product champions
A. are typically senior executives. B. are strong supporters of the status quo. C. are usually inventors of some sort. D. scavenge for resources and encourage others to back promising new ideas.
Success of the forfaiting technique springs from the belief that the aval can be depend on
Indicate whether the statement is true or false.
For each tax treatment described below, explain the income tax concept(s) which is (are) responsible for the treatment
a. Atlas Construction Inc., an accrual basis taxpayer, billed a client $12,000 for services performed in December 2017 . In March 2018, Atlas Construction receives a check from the client for $10,000 . Included with the check is a letter indicating that some of the services had not been performed to specifications. After investigating the matter, Atlas Construction determined that the customer was right and corrected its account receivable with the client. Atlas Construction must include $12,000 in its 2017 income and takes a deduction for $2,000 in 2018. b. Katie is the Mayor of Coal Creek. During the current year, she accepts $5,000 from a local banker for her promise that the banker would receive the contract for a new city bond issue. The payment is illegal under state law and will have to be returned if discovered. Katie must include the $5,000 in her gross income. c. Little Company purchased machinery in 2012 at a cost of $40,000 . In 2012 through 2017, Little properly deducts $14,000 in depreciation on the machinery. In 2017, the machinery is sold for $20,000 . Little is allowed to deduct a $6,000 loss on the sale of the machinery. d. In 2017 Raptor Corporation properly deducted a $5,000 expense it paid to Colfax Inc. In 2018 Raptor receives a $500 check from Colfax. A letter accompanying the check indicates that Colfax overcharged Raptor and the $500 refund was made to correct the overcharge. Raptor must include the $500 in its 2017 gross income.