Valarie owns 100% of Green Company. Green has earnings and profits of $10,000. The corporation distributes property with a basis of $9,000 and a FMV of $12,000 to Valarie. She must report dividend income of:
A. $9,000.
B. $12,000.
C. $2,000.
D. $10,000.
Answer: D
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Which of the following inventory costing methods reports most closely the current cost of inventory on the balance sheet?
a. FIFO b. Specific identification c. Weighted average d. LIFO
For one product that a firm produces, the manufacturing cycle efficiency is 25 percent. If the total production time is 10 hours, what is the total manufacturing time?
a. 2.5 hours b. 8.0 hours c. 10.0 hours d. 40.0 hours
When the seller breaches, the risk of loss often passes to the buyer sooner than it otherwise
would. Indicate whether the statement is true or false
James Krieg has finished law school but has unsuccessfully taken the bar exam twice. Krieg is running low on patience and cash. He has begun writing wills to see him through this time of crisis and is charging $200 per will. Some of his will clients have refused to pay Krieg and he wishes to take them to a small claims court. Which of the following statements is true?
A) Krieg could recover the fees on a quasi-contract theory. B) Krieg could recover the fees since the licensing after the bar exam is simply to raise funds. C) Krieg agreements are voidable. D) Krieg agreements are void.