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Question - Montoya Manufacturing has fixed costs of $2,500,000 and variable costs are 40% of sales. What are the required sales if Montoya desires net income of $250,000?
a. $4,583,333
b. $4,166,667
c. $6,875,000
d. $6,250,000
The fair market value of the new equipment is $250,000. Prepare the journal entry with description to record this transaction
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The income statement for Roland Inc. shows income before income taxes $700,000, income tax expenses $210,000, and net income $490,000. If Roland declared $150,000 of cash dividends on preferred stock and has 100,000 shares of common stock outstand..
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