For garrett wolfe company the following information

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5. For Garrett 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 100,000 In Garret Wolfe’s single-step income statement, gross profit a. should not be reported b. should be reported at $13,500 c. should be reported at $40,000 d. should be reported a $42,500 6. Gross billings for merchandise sold by Otto Company to its customers last year amounted to $15,720,000; sales returns and allowances were $370,000; sales discounts were $175,000; and, freight-out was $140,000. Net sales last year for Otto Company was:
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7. Dan Nicholson Corporation has an extraordinary loss of $50,000, an unusual gain of $35,000, and a tax rate of 40%. At what amount should Dan Nicholson report each item? Extraordinary Loss Unusual Gain 8. Novak Corporation reports the following information: Correction of overstatement of depreciation expense in prior years, net of tax $ 215,000 Dividends declared 160,000 Net income 500,000 Retained earnings, 01/01/07 as reported 1,000,000 Joe Novak should report retained earnings for 01/01/07 As adjusted as: 9. Cole Company, with an applicable income tax rate of 30%, reported net income of $210,000. Included in income for the period was an extraordinary loss from flood damage of $30,000 before deducting the related tax effect. The company’s income before income taxes and extraordinary items was: a. $240,000 b. $300,000 c. $330,000 d. $231,000 10. Simmons Corporation reports the following information: Correction of understatement of depreciation expense In prior years, net of tax $ 430,000 Dividends declared 320,000 Net income 1,000,000 Retained earnings, 01/01/07, as reported 2,000,000 Simmons should report retained earnings, 01/01/07, as adjusted as:
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