278. When a business pays dividends to its shareholders, the dividends are tax deductible
     1. False B) True

279. A company orders office supplies in June. Those supplies are received and paid for in July. The supplies are used in August. In which month should the company record supplies expense?
     1. July B) Evenly over the three months

C) August D) June

280. Which of the following are made BEFORE the financial statements are prepared (more than one possible correct answer)?
     1. Closing Entries B) Adjusting Entries C) Transaction Entries

281. Parent Co. purchased the entire business of Subsidiary Co. including all its assets and liabilities for $600,000. Below is information related to the two companies:

	Parent	Subsidiary
Fair value of assets	$1,050,000	$800,000
Fair value of liabilities	575,000	300,000
Reported assets	800,000	650,000
Reported liabilities	500,000	250,000
Net Income for the year	60,000	50,000

How much goodwill did Parent pay for acquiring Subsidiary?

A) $150,000. B) $200,000. C) $300,000. D) $100,000.

282. On January 1, 2018, ABC purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of

$8,000. Assume the truck was totaled in an accident on December 31, 2019. What amount of gain or loss should ABC record on December 31, 2019?

A) Loss, $18,000. B) Loss, $3,000. C) Loss, $38,000. D) Gain, $5,000.