One approach to quality assurance is to test the code for a completed unit of software by actually entering test data and comparing the results with the expected results in a process called______
a. dynamic testing b. user acceptance testing
c. integration testing d. static testing
a
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Indicate whether the statement is true or false
Which of the following accounts is a permanent account?
A) Building B) Depreciation Expense-Buildings C) Interest Expense D) Service Revenue
Steven Company owns 40% of the outstanding voting common stock of Nicole Corp. and has the ability to significantly influence the investee's operations. On January 3, 2018, the balance in the Investment in Nicole Corp. account was $503,000. Amortization associated with this acquisition is $12,000 per year. During 2018, Nicole earned net income of $120,000 and paid cash dividends of $40,000. Previously in 2017, Nicole had sold inventory costing $35,000 to Steven for $50,000. All but 25% of that inventory had been sold to outsiders by Steven during 2017; the remainder was sold in 2018. Additional sales were made to Steven in 2018 at an intra-entity selling price of $75,000. The goods in the intra-entity sales cost Nicole $54,000. Only 10% of the 2018 intra-entity purchases from Nicole had
not been sold to outsiders by the end of 2018.What amount of gross profit on 2018 intra-entity sales should Steven defer at December 31, 2018? What will be an ideal response?