The following information was obtained from the accounts of Marion Company: Inventory, January 1 .................................. $30,000 Purchases ............................................. 45,000 Purchase Returns and Allowances ....................... 5,000 Purchase Discounts .................................... 4,000 Freight-In ............................................ 5,000 Inventory,

December 31 ................................ 20,000 Freight-Out ........................................... 6,000 Given this information, the cost of goods sold during the year is
a. $46,000.
b. $41,000.
c. $51,000.
d. $61,000.


C

Business

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Fill in the blank(s) with the appropriate word(s).

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Explain the four critical components of the LAMP model.

What will be an ideal response?

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A firm with a low rating from the bond-rating agencies would have

A. a low times-interest-earned ratio. B. a low debt-to-equity ratio. C. a low quick ratio. D. a low debt-to-equity ratio and a low quick ratio. E. a low times-interest-earned ratio and a low quick ratio.

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White Company acquires a new machine (seven-year property) on January 10, 2017, at a cost of $610,000 . White makes the election to expense the maximum amount under ยง 179, and wants to take any additional first-year depreciation allowed. No election is made to use the straight-line method. Determine the total deductions in calculating taxable income related to the machine for 2017 assuming White

has taxable income of $800,000. a. $87,169 b. $348,585 c. $510,000 d. $524,290 e. None of the above

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