Acme Company buys and sells machine grinding collars. On January 1, 2015, Acme had 1,200 collars in inventory.On its balance sheet, these collars were valued at $2,400.In 2015, Acme made the following collar purchases for its inventory:

March 1:400 collars$1,000 total price

June 1:200 collars$600 total price

Sept. 1:500 collars$1,500 total price

Dec. 1:100 collars$350 total price

On December 20, 2015, Acme sells 1,400 collars (assume no previous sales for the year).This is its total sales for the year.Assuming Acme uses the FIFO (First-in-first-out) method of inventory valuation, what is thecost of goods soldfor the 1,400 collars Acme sold?

Select one:

a.$2,400

b.$2,925

c.$2,900

d.It depends on which collars Acme sold.

e.$3,850

Company A acquires 75% of the voting stock of Company B, at this level of ownership, Company A...

Select one:

A.is the Subsidiary Company to Company B

B.has a non-controlling active ownership interest in Company B

C.can consolidate the financials of Company B with their financials but is not required to do so

D.will recognize either equity income or dividend income on its income statement but not both

E.will have an entry on both its income statement and balance sheet that represents the non-controlling interests of investors other than Company A that still are invested in Company B

I am reviewing the multi-step income statement for a company and I see the following:

Earnings before interest and taxes$1,239,457

Interest expense145,101

Earnings before taxes$1,094,356

Provision for taxes420,036

Net Income$674,320

From this information, what do you think is the approximate tax rate for this company?

Select one:

a.35.0%

b.Cannot be determined - insufficient information

c.62.3%

d.38.4%

e.33.9%

Which statement below is correct or true?

Select one:

A.Compared to straight-line depreciation, accelerated forms of depreciation generally result in lower expenses and higher net income in the early stages of a depreciable asset's life.

B.If I use straight-line depreciation and I increase the number of years I will depreciate my depreciable assets without changing my salvage value estimate, my annual depreciation expense for that item will decrease.

C.Compared to straight-line depreciation, accelerated forms of depreciation are hardly ever used in the financial records reported to the IRS for tax purposes.

D.The depreciation methods I use for tax purposes must be the same as the methods I use in the financial records I send to the SEC.

E.Depreciation expense represents a tremendous cash inflow item.Many companies fail because they cannot afford their depreciation expenses.