Marker Corporation manufactures and sells birdhouses and feeders. The company also sells similar items that are imported from foreign countries. During the current year, Marker had a profit of $700,000 from its own products but a loss of $50,000 from the imported goods.
a. What is Marker's QPAI?
b. What is Marker's DPAD?
a. $700,000.
b. Even though QPAI is $700,000, TI is $650,000 ($700,000 – $50,000). DPAD is $58,500 (9% × $650,000).
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Answer the following statement true (T) or false (F)