6. How much of the expenses listed above should be included in Nance's general and administrative expenses for 2016?

a. $760,000.

b. $820,000.

c. $880,000.

d. $940,000

7. National Company reported the following for the year

Correction of overstatement of depreciation expense in prior years, net of tax $130,000

Dividends declared during the year 50,000

Net Income ?????

Retained earnings at the beginning of the year, as reported 1,800,000

Retained earnings at the end of the year 2,680,000

Net income for the year was:

a. $700,000

b. $800,000

c. $880,000

d. $750,000

8. Falley Corp.'s adjusted trial balance of accounts for the year ended December 31, 2016 included the following: (assume all normal balances)

Sales $280,000

Cost of sales $120,000

Administrative expenses 50,000

Loss on sale of equipment 18,000

Commissions to salespersons 20,000

Interest revenue 10,000

Loss due to fire damage 30,000

Bad debt expense 6,000

Effective tax rate 30%

Based on the information, Falley would report operating income on a multiple step income statement of:

a. $84,000

b. $46,000

c. $90,000

d. $58,800

9. Which of the following would involve reporting of a prior period adjustment?

Change in Estimated Lives Change from One Accounting

of Depreciable Assets Principle to Another Principle

a. Yes Yes

b. No Yes

c. Yes No

d. No No

10. Johnson Corporation reported the following for 2016:

Net Sales $850,000

Cost of Goods Sold 400,000

Selling and Administrative Expenses 125,000

Gain from sale of available for sale securities 18,000

Unrealized holding gain on available for sale securities 10,000

Assume that Johnson has a 30% tax rate but pays no tax on all unrealized gains and losses What is net income and comprehensive income for 2016?

a. net income = 325,000, comprehensive income = 353,000

b. net income = 227,500, comprehensive income = 250,100

c. net income = 240,100, comprehensive income = 250,100

d. net income = 240,100, comprehensive income = 10,000

please help with the solutions to these thank you