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Ireland corporation planned to be in operation for three years. during the first year 20x1, it had no sales but incurred $120,000 in variable manufacturing expenses and $40,000 in fixed manufacturing expenses. in 20x2 it sold half of the finished goods inventor from 20x1 for 100,000 but it had no manufacturing costs. in20x3 it sold the remainder of the inventory for 120,000 had no manufacturing expenses and went out of business. Marketing and adminstrative expenses were fixed and totaled 20,000 each year.
a. Prepare an income statement for each year using absorption costing.
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The property included land appraised at $87,500, land improvements appraised at $35,000, and a building appraised at $52,500. What should be the allocation of this property's costs in the company's accounting records?
Jones' legal counsel believes the following will happen in relationship to these incidents:
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