13. Costs that can be reasonably associated with speific ressnuss but not with specific products showl charged to expense in the period incurred expensed in the period in which the related revenue is recognized. allocated to specific products based on the best estimate of the production processing e. time. capitalized and then amortized over a period not to exceed 60 months. 14. Jupiter Manufacturing Company sold plant assets at a gain of $205,000 less related taxes of $62,500. Assuming the gain is not considered unusual or infrequent, Jupiter's income statement for the period should report a. operating income net of applicable taxes, $142,500. b. a prior period adjustment net of applicable taxes, $142,500. c an extraordinary item net of applicable taxes, $142,500. d. a gain of $205,000 and an increase in income tax expense of $62,500. 15. The changes in account balances of the Clearwater Corporation during 2011 are presented below: Insrease Assets Liabilities Common Stock Additional Paid-In Capital 133, 500 40,500 90,000 9, 000 Assuming there are no changes in retained earnings except for net income and a dividend payment of $19,500, the net income for 2011 should be a. $13,500. b. $25,500. c. $19,500. d $6,000. 16. Byron Inc. decided on August 1, 2011, to dispose of a component of its business. The component was sold on November 30, 2011. Byron's income for 2011 included income of $250,000 from operating the discontinued segment from January 1 to the sale date. Byron incurred a loss on the November 30 sale of $220,000. Ignoring income taxes, what amount should be reported in the 2011 income statement as the net income or loss under "Discontinued Operations"? a. $30,000 income b. $30,000 loss c. $220,000 loss d. $250,000 income 17. According to the FASB's conceptual framework, comprehensive income includes which of the following? Yes Yes No No No a. b. Yes c No Yes The operating cycle a. cannot exceed one year. b. refers to the seasonal variations experienced by business enterprises 18. c measures the time elapsed between cash disbursement for inventory and cash collection of the sales price. should be used to classify assets and liabilities as current if i is less than one year