A corporation closes a facility and moves to a new location. How would a loss on the disposal of the equipment at the closed facility be reported on an income statement?

Question 15 options:

	A loss on the disposal of the equipment at the closed facility would be reported as an operating expense in net income from continuing operations.
	A loss on the disposal of the equipment at the closed facility would be reported as a component of discontinued operations.
	A loss on the disposal of the equipment at the closed facility would be reported as another loss in net income from continuing operations.
	A loss on the disposal of the equipment at the closed facility would be reported as an extraordinary loss.

McDowell Corporation has an income tax rate of 35%, taxable income of $662,000, and income before income tax of $597,000. Which of the following would be included in the entry to record income tax expense?

Question 16 options:

	Prepaid income tax is credited for $231,700.
	Income tax payable is credited for $208,950.
	Deferred tax liability is credited for $22,750.
	Income tax expense is debited for $208,950.

Which of the following would occur if 55,000 shares of no-par common stock are issued at $13. 50 per share?

Question 18 options:

	Common stock would be credited for $742,500.
	Paid-in capital in excess of no-par common would be credited for $742,500.
	Paid-in capital in excess of no-par common would be debited for $742,500.
	Cash would be credited for $742,500.