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The MedView brochure said, "Only 45 scans per month to cover the monthly equipment rental of $18000." *The footnote at the bottom of the brochure read: *"Assumes a reimbursable fee of $475 per scan."
The MedView brochure refers to a new radiology imaging system that MedView rents for $18000 per month. A "scan" refers to one imaging session that is billed at $475 per scan. Each scan involves giving the patient a chemical injection and requires exposing and developing an X-ray negative.
a. What variable cost per scan is MedView assuming in calculating the 45-scans-per-month amount?
b. Is the MedView brochure really telling the whole financial picturing? What is it omitting?
How are the income statement and statement of cash flows used to make business decisions? What are the advantages and limitations of using them to make decisions affecting the future of a business?
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Maine Company reported a pretax operating loss of $150,000 for financial reporting and tax purposes in 2012. The enacted tax rate is 40% for 2012 and subsequent years.
Ohio Corp. reported a deferred tax liability of $6,000,000 for the year ended December 31, 2012, when the tax rate was 40%. Income tax expense reported by Ohio on its year end December 31, 2013 income statement is:
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