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 expense 145,101

Earnings before taxes $ 1,094,356

Provision for taxes 420,036

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%

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 the cost of goods sold for 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