Question 4 (1 point)

Shelton Corp., a local manufacturer, reported the following information for 2010:

Sales $750,000

Cost of Goods Sold 562,500

Operating Expenses 112,500

Income Tax Expense 22,500

What is Shelton Co.s operating income?

Question 4 options:

	$52,500
	$75,000
	$90,000
	$187,500
	$615,000

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Question 5 (1 point)

On October 1, 2010, Pilchers Inc. paid $60,000 to the Chicago Informer for newspaper advertisements that will run from November 1, 2010 through December 24, 2010. Which of the following journal entries should Pilchers recognize on October 1, 2010?

Question 5 options:

	Prepaid Advertising 60,000 Cash 60,000
	Prepaid Advertising 60,000 Accounts Payable 60,000
	Advertising Revenue 60,000 Cash 60,000
	Advertising Expense 60,000 Accounts Payable 60,000
	Advertising Expense 60,000 Prepaid Advertising 60,000

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Question 6 (1 point)

During 2010, ABC Corp. purchased the following three short-term investments:

Date Acquired	Historical Cost at Acquisition Date	Fair Market Value on Dec. 31, 2010
1/2/10	$10,000	$10,200
9/13/10	$30,000	$29,550
11/28/10	$20,000	$21,975

ABC should recognize its short-term investments on the December 31 balance sheet at which of the following amounts?

Question 6 options:

	$59,550
	$60,000
	$61,725
	$62,175
	none of the above