Pretax accounting income is $100,000 and the tax rate is 40%. Included in income is a $20,000 fine levied for pollution violations and other infractions during the year. In the reconciliation of the statutory and effective rate (beginning with the statutory rate), which one of the following amounts would appear?
a. (.08)
b. .08
c. (.20)
d. (.04)
B
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A corporation issued 110 shares of its $5 par value common stock in payment of a $1900 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:
A. A $1900 credit to Cash. B. A $1900 debit to Legal Expenses. C. A $550 debit to Organization Expenses. D. A $1900 credit to Common Stock. E. A $1350 credit to Paid-in Capital in Excess of Par Value, Common Stock.
Adam's Manufacturing has the following information available regarding one of the projects it is considering: Initial investment $500,000 Net present value 80,000 The profitability index of this project is:
A) 6.25. B) 0.16. C) 1.16. D) 0.86.
Which of the following was the standard used by the traditional common law to determine whether a contract has been breached?
A) substantial performance B) perfect tender rule C) complete performance D) partial rule
Samson, Inc reported the following information for the year
Service Revenue $60,000 Operating Expenses 21,000 Net Income 39,000 Number of Services Provided for the Year 10,500 How much was the unit cost per service? (Round your answer to the nearest cent.) A) $5.71 B) $3.71 C) $2.00 D) $7.71