Goshen City acquires $36,000 of inventory on November 1, 20X5, having held no inventory previously. On December 31, 20X5, the end of Goshen City's fiscal year, a physical count shows $7,000 still in stock. During 20X6, $5,000 of this inventory is used, resulting in a $2,000 remaining balance of supplies on December 31, 20X6.Based on the preceding information, which of the following would be the correct account balances for 20X5 if Goshen City used the purchase method of accounting for inventories? ExpendituresInventory ofSuppliesA.$36,000 $7,000 B.$29,000 $0 C.$36,000 $0 D.$29,000 $7,000
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
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Rowanda could not settle her tax dispute with the IRS at the appeals conference. If she wants to litigate the issue but does not have sufficient funds to pay the proposed tax deficiency, Rowanda should litigate in the:
A. U.S. Circuit Court of Appeals. B. U.S. Court of Federal Claims. C. Tax Court. D. U.S. District Court. E. None of the choices are correct.
Some observers argue that insider trading is an efficient means to disseminate accurate information about the market and that it moves the markets in the direction of equilibrium. The challenge to this argument is, however, that this is accomplished by unfair and unethical means.
Answer the following statement true (T) or false (F)
In a job-order costing system, the use of indirect material would usually be reflected in the general ledger as an increase in
a. stores control. b. work in process control. c. manufacturing overhead applied. d. manufacturing overhead control.
A firm acquires a car for company business. The car costs $12,000, has a useful life of 5 years, and a salvage value of $2,000 . The straight-line method of depreciation is used. What is the gain or loss on retirement if the car is sold for $5,000 after three years of use?
a. a gain of $200 b. a loss of $1,000 c. a gain of $1,000 d. a loss of $200 e. a loss of $800