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Unformatted text preview: r amount of bad debt expense. CPA-04324 Type1 M/C 140. CPA-04324 A-R Corr Ans: A PII May 92 #5 (Adapted) 5 PM#46 R 3-99 Page 3 Following is Ral Corp.'s condensed income statement, before federal income tax, for the year ended December 31, 1993: Sales Cost of sales Gross profit Operating expenses Operating income Other income (loss): Interest Dividends Net long-term capital loss Income before federal income tax $1,000,000 (700,000) 300,000 (220,000) 80,000 $5,200 19,200 (6,400) Additional information: Interest arose from the following sources: U.S. Treasury notes Municipal bonds Total interest 18,000 98,000 $ 3,000 2,200 5,200 Dividends arose from the following sources: Taxable domestic corporation Clove Corp. Ramo Corp. Sol Corp. (stock sold 1/10/94) Real Estate Investment Trust Mutual Fund Corp. (capital gains dividends only) Money Market Fund (invests only in interest-paying securities) Date stock acquired 7-1-87 9-1-89 12-1-93 6-1-92 % owned by Ral 30.0 10.0 5.0 1.0 $ 7,000 6,000 1,000 2,700 4-1-91 0.1 400 3-1-90 74 0.1 2,100 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lec...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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