Josephine Industries selk off it's unprofitable Pet Food division, which is a strategic shift in the company's operations that will have a material impect on financial resuls. The Pet Food division did not generate any income during the year, and the loss on the sale of the dlvision was $$2$ milion. Josephine Industry's income from continuing operations during the year was $$25$ million. If the company's tax rate was $20\%,$ which of the following represents the Net Income from Discontinued Operations that will appear on the company's income Statement? : $*$

A$)$ Loss of $$1,600,000.$

B$)$ Loss of $$2,000,000.$

C$)$ Gain of $$18,400,000.$

D$]$ Gein of $$23,000,000.$

How will the present value of a future amount be affected if the interest rate is lowered? :

A$)$ The present value will increase.

B$)$ The present value will decrease.

C$)$ The present value will not change.

D$)$ We must know the amount of the future value before this can be answered.

Kauftman Compamy was awarded a $$70$ milion contract to build a sports stadium. The estimated time to complete the project is five years, and the estimated total cost to Kaufmann is $$50$ milion. If after the first year Kauffman Company's costs incurred are $$5m[$ion$,$ how much revenue should the company recognize on its Income Statement using the percentage of completion method?: $*$

A$)$ $$70,000,000$

B$)$ $$20,000,000$

C$)$ $$3,571,429$

D$)$ $$7,000,000$

Noodle, he$,$ decides to replace its old pasta extruding machine with a new top$-$ot theline model. The company is able to sel the old machine to ZitiCo in a transaction in which Zitico gives Noodle, he$.$ $$3,000$ cash. The original purchase price of the machine was $$10,000$ and Noodle, he$,$ has recorded $$6,000$ in accumulated depreciation on the

machine at the date of the sale. Which of the following is a line from journal entry Noodle, Bc$.$ will use to record sale of the asset? :$"$

A$)$ Credit Machinery and Equipment for $$4,000.$

B$)$ Credit Cash for $$1,000.$

C$)$ Debit Machinery and Equipment for $$10,000.$

D$]$ Debit Loss on Disposal of Machinery for $$1,000$

Lipplegoos Co$.$ uses the acerual method of accounting and follows GAAP. The company charges $7\%$ sales tax on all sales as required by bcal law. After each calendar quarter, Lipplegoos Co$.$ then submits a sales tax filng with the local tax collector and pays the accrued sales tax due for the quarter. When recording a sale in its books, how should Lipplegoos Co$.$ record the sales tax collected at the time of the sale?: $"$

A$)$ Include the sales tox amount in the credit entry to the Revenue account

B$)$ Debit Sales Tax Expense for the amount of sales tax collected

C$)$ Credit Sales Tax Payable for the amount of sales tax collected

D$)$ The company's books should remain out of balance untill the sales tax filing is submitted at the end of the quarter.

BigBox Retailer shipped the peperback rather than the hardbound book to a credit customer who complained about the mix$-$up$.$ BigBox agreed to give the customer a $15\%$ discount if they wanted to keep the paperback book and the customer agreed. When issuing the $15\%$ discount, BigBox should make an entry that includes ac: $*$

A$)$ Credit to Sales

B$)$ Debit to Accounts Receivable

C$)$ Debit to Sales Returns

D$)$ Debit to Sales Allowances