Meta Inc. pays $18,000 to buy stock in another company and an additional $350 in commissions. Three months later, Meta sells the stock for $19,000. At the time of sale, Meta will recognize:

a. $1,000 gain.

b. $650 loss.

c. $350 loss.

d. $650 gain.

Stockton Corporation has made an accounting entry to record deferred taxes as a liability resulting from temporary differences between accounting income and taxable income. Which of the following statements is true?

a. Stockholders' equity will be decreased.

b. Stockholders' equity will be increased.

c. Deferred tax will be decreased.

d. Assets will be decreased.

3- On May 1, the Chris Company borrowed $30,000 from the Third Street Bank on a 1-year, 6% note. If the company keeps its records on a calendar year, an adjustment is needed on December 31 to increase:

a. Interest Payable, $900.

b. Interest Expense, $1,800.

c. Interest Payable, $1,200.

d. Interest Expense, $600.