Describe the role of resellers who comprise one the major categories of business customers.
What will be an ideal response?
Answers will vary. The reseller market includes retail and wholesale businesses that buy finished goods and resell them for a profit. A retailer sells mainly to final consumers; wholesalers sell mostly to retailers and other organizational customers. There are approximately 1.5 million retailers and 500,000 wholesalers operating in the United States. Consumer product firms like Procter & Gamble, Kraft Foods, and Coca-Cola sell directly to large retailers and retail chains, as well as through wholesalers to smaller retail units. Business product distributors are wholesalers that buy business products and resell them to business customers. They often carry thousands of items in stock and employ sales forces to call on business customers. Businesses that wish to buy a gross of pencils or a hundred pounds of fertilizer typically purchase these items from local distributors rather than directly from manufacturers such as Empire Pencil or Dow Chemical.
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Bourne Company received rent in advance of $9,000 on December 31, 2016, which was taxable when received for income tax purposes. The company's effective tax rate was 30%, and this was the only temporary difference. Which of the following should be reported on the December 31, 2016 balance sheet?
A) $9,000 as a current deferred tax liability B) $2,700 as a current deferred tax liability C) $2,700 as a current deferred tax asset D) $9,000 as a current deferred tax asset
A local day spa is considering investing in a machine that costs $60,000. The machine is expected to generate revenues of $25,000 per year for five years. The machine would be depreciated using the straight-line method with no half-year convention over its five year life and have no salvage value. The company considers the impact of income taxes in all of its capital investment decisions. The
company has a 35 percent income tax rate and desires an after-tax rate of return of 14 percent on its investment. The net present value of the machine is: A) $36,985. B) $10,207. C) $25,828. D) $22,566.
Cases that the court does not feel have precedential effect and are limited to a specific set of facts are:
A) secondary pocketparts. B) unpublished opinions. C) shepardized cases. D) none of the above.
Which technique would accelerate the completion of a project?
A) Hammocking B) Bursting C) Laddering D) Passing