An understatement of year 1's beginning inventory will
A) cause year 2's gross margin to be overstated.
B) cause year 1's cost of goods sold to be understated.
C) cause year 2's gross margin to be understated.
D) have no effect on year 1's gross margin.
B
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Zen Electronics has taken a penetration pricing approach to launch its new line of mobiles. Therefore, Zen is most likely to ______.
A. initially charge a relatively low price per product B. introduce the line at a relatively high price per product C. wait until the current competition weakens D. join the competition at its peak
Clampett, Inc., converted to an S corporation on January 1, 2019. At that time, Clampett, Inc., had cash ($40,000), inventory (FMV $60,000, basis $30,000), accounts receivable (FMV $40,000, basis $40,000), and equipment (FMV $60,000, basis $80,000). In 2020, Clampett, Inc., sells its entire inventory for $60,000 (basis $30,000). Assume the corporate tax rate is 21 percent and that Clampett Inc.'s taxable income would have been a $50,000 loss in 2020 if it had been a C corporation. In 2021, Clampett, Inc.'s taxable income would have been $100,000 if it had been a C corporation. How much built-in gains tax does Clampett, Inc., pay in 2020? In 2021?
A. $0 in 2020; $0 in 2021. B. $0 in 2020; $10,500 in 2021. C. $10,500 in 2020; $0 in 2021. D. $2,100 in 2020; $0 in 2021. E. None of the choices are correct.
DHL gained significant favorable publicity when it safely transported two giant pandas from Chengdu, China to the National Zoo in Washington, D.C
Indicate whether the statement is true or false
"I really admire Joel, our team leader," said Jami. "Our team has tough goals to accomplish, and Joel doesn't just supervise us, he
A. serves as an advocate." B. serves as a resource." C. oversees our work." D. will evaluate the final product." E. does real work."