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Question -
1) At the beginning of the year, ABC Company's allowance for doubtful accounts had a credit balance of $15,000. During the year, ABC wrote off uncollectible accounts receivable of $23,000. ABC estimates that 2% of net credit sales become uncollectible. Credit sales during the year were $625,000 and sales discounts were $12,000. What is the end of year adjusted balance of the allowance for doubtful accounts?:
a. $4,260
b. $8,000
c. $12,260
d. $12,500
e. $20,260
2) X Company is deciding whether to retain its office telephone system or replace it with a new system. Which cost should NOT be considered when making this decision?
a. Salvage value of current system
b. Cost of current system
c. Incremental cost
d. Sunk cost
Misclassification of Independent Contractors in IRS Crosshairs, There are potential legal risks for companies that work contract and full time employees side
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1. Based on the information below, calculate the weighted average cost of capital.
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In 2011, P Company sells land to its 80% owned subsidiary, S Company, at a gain of $50,000. What is the effect of this sale of land on consolidated net income assuming S Company still owns the land at the end of the year?
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Why are revenue synergies typically given less weight than cost synergies when evaluating the combination benefits of a transaction?
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