1. The following information was available from the inventory records of Crane Company for January:

				Units				Unit Cost			Total Cost
Balance at January 1					5000				$9.10			$45,500
	Purchases:
		January 6			5000				10.37			51,850
		January 26			5000				10.74			53,700
	Sales
		January 7			(2000	)
		January 31			(9000	)
Balance at January 31					4000

Assuming that Crane uses the periodic inventory system, what should be the cost of goods sold at January 31, using the weighted-average inventory method, rounded to the nearest dollar? A. $108,372 B. $102,298 C. $110,770 D. $40,486

2. On December 30, 2017, Sheffield Corp.. purchased a machine from Pharoah Company in exchange for a zero-interest-bearing note requiring eight payments of $218,000. The first payment was made on December 30, 2017, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note was 10%.

On Sheffield's December 31, 2017 balance sheet, the net note payable to Pharoah is A. $1,279,315 B. $1,288,137 C. $1,070,368 D. $1,163,014 3. On July 1, 2017, Ed Wynne signed an agreement to operate as a franchisee of Bramble Corp., for a franchise fee. Of this amount, $324,000 was paid when the agreement was signed and the balance is payable in four equal annual payments of $162,000 beginning July 1, 2018. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. Wynne's credit rating indicates that he can borrow money at 13% for a loan of this type. Wynne should record the acquisition cost of the franchise on July 1, 2017 at A. $1,056,240 B. $972,000 C. $667,440 D. $805,864