Question
ABC Company has a car and it considers whether to sell it directly at a price of SR 100,000 or to make some modifications costing
ABC Company has a car and it considers whether to sell it directly at a price of SR 100,000 or to make some modifications costing SR 10,000 to sell it at a price of SR 120,000.
Required: using the differential analysis which alternative do you recommend about the car.
Answer:
| Alternative 1 Sell without modifications | Alternative 2 Sell after modifications | Differential |
Revenues |
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Modification costs |
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Differential income |
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How To Avoid IRS Audits
Authors: Victor S. Sy, CPA, MBA, Allana Santos, Roger Oriel, Louie Gajardo, Malou Aguilar Bledsoe, RJ Oriel, Mark Xavier Bautista, Kenno Samulde, Morton D Rosenthal Esq.
1st Edition
1530746477, 978-1530746477
