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On June 1, Royal Corp. began operating a service company with an initial cash investment by shareholders of $2,000,000. The company provided $6,400,000 of services
On June 1, Royal Corp. began operating a service company with an initial cash investment by shareholders of $2,000,000. The company provided $6,400,000 of services in June and received full payment in July. Royal also incurred expenses of $3,000,000 in June that were paid in August. During June, Royal paid its shareholders cash dividends of $1,000,000.
What was the company's income before income taxes for the two months ended July 31 under theAccrual (______a_______)andCash(_____________b_________) basis methods of accounting?
a =3,400,000;b =3,000,000a =3,400,000;b =6,400,000a =6,400,000;b =3,000,000a =4,400,000;b =2,000,000Step by Step Solution
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