A company has inventory with a selling price of $451,000, a market value of $223,000 and a cost of $241,000. According to the lower of cost or market, the inventory should be written down to $223,000.

Answer the following statement true (T) or false (F)


True

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Refer to Figure 11.1. Suppose the exchange rate is $.70 per franc. Free-market forces would lead to a(n) ____ of the dollar against the franc and a(n) ____ in U.S. international competitiveness.

a. depreciation, improvement b. depreciation, worsening c. appreciation, improvement d. appreciation, worsening

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The work sheet used to prepare a statement of cash flows (indirect method to determine cash flows from operating activities) should have a total in the Changes column equal to total assets

a. True b. False Indicate whether the statement is true or false

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What are some risks associated with DDP?

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An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state

unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the employer's payroll tax expense? A) $152.76 B) $91.26 C) $58.50 D) $178.50

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