midterm #1 W09b answer version 2

midterm #1 W09b answer version 2 - UCSB136(A)...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
UCSB 136(A)  Answer key Version #2 Barrett Carrere Winter 2009 Mid Term #1 Ch 2-5 ________________________________________________________________ Name and student #, class am or pm Note: please turn in all three to receive credit on test: 1) this test.  2) your green scantron.  You may remove the problem pages from the test if you like, however, please make sure you write  your name on these sheets.    The test is 250 points as follows: 1) #1-25 multiple choice/true, false All questions that do not have a.,b.,c… are  T/F Please use your scantron 175 points or 70%, each  is 7 points or 2.8% of  total. 2) Change in accounting principle problem Please write answers on  space provided.    75 points or 30% of  total.  1. For Garret Wolfe Company, the following information is available: Cost of goods sold $  60,000 Dividend revenue 2,500 Income tax expense 6,000 Operating expenses 23,000 Sales 105,000 In Garret Wolfe’s multiple-step income statement, gross profit a. should not be reported  b. should be reported at $18,500. c. should be reported at $47,500. d. should be reported at $45,000. 1 of 8
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4-54 D 54. D $105,000 – $60,000 = $45,000. should be reported at $42,500. 2. An income statement shows “income before income taxes and extraordinary items” in the  amount of $2,055,000.   The income taxes payable  for the year  are $1,080,000, including  $360,000 that is applicable to an extraordinary gain.  Thus, the “income before extraordinary  items” is a. $1,335,000. b. $615,000. c. $1,395,000. d. $675,000. 4-60 A 60. a. $2,055,000 – ($1,080,000 – $360,000) = $1,335,000. 3. Carpino Corporation has an extraordinary loss of $200,000, an unusual gain of $140,000, and a  tax rate of 40%. At what amount should Carpino report each item? Extraordinary loss Unusual gain a. $(200,000) $140,000 b. (200,000) 84,000 c. (120,000) 140,000 d. (120,000) 84,000 4-67 C 67.c $200,000 × .60 = $120,000. 4.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/31/2010 for the course ECON 136A taught by Professor Anderson during the Winter '08 term at UCSB.

Page1 / 8

midterm #1 W09b answer version 2 - UCSB136(A)...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online