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Merchandise was purchased on account from Jacob's Distributors on May 17. The purchase price was $2,000, less a 10% trade discount and credit terms of 2/10, n/30.
1. Calculate the net amount to record the invoice, less the 10% trade discount.2. Calculate the amount to be paid on this invoice within the discount period.3. Journalize the purchase of the merchandise on May 17 in a general journal. Journalize the payment on May 27 (within the discount period).
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Downing Company purchased a new machine on October 1, 2012, at a cost of $90,000. The company estimated that the machine has a salvage value of $6,000. The machine is expected to be used for 70,000 working hours during its 8-year life.
Find gain or loss will be reported on the income statement for the sale of the machine?
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In Jan. Lance sold stock with a cost basis of $26,000 to his brothe, James for $24,000, the fair market value of the stock at the time of sale. Five months later, James sold same stock for $27,000. Illustrate what is the tax effect of these transa..
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