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36. Warren Electronics sells computers and provides hardware maintenance services. On April 1st, Warren i sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Warren Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly? A) $1,000 B) $870 C) $725 D) $30 -11- 37.) Howard Co.'s 2021 income from continuing operations before income taxes was $280,000. Howard Co. reported before-tax income on discontinued operations of $60,000. All tax items are subject to a 25% tax rate. In its income statement for 2021, Howard Co. would show the following line-item amounts for income tax expense and net income: A) $70,000 and $255,000 respectively. B) $55,000 and $220,000 respectively. C) $85,000 and $340,000 respectively. D) $85,000 and $255,000 respectively.

36. Warren Electronics sells computers and provides hardware maintenance services. On April 1st, Warren i sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Warren Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly? A) $1,000 B) $870 C) $725 D) $30 -11- 37.) Howard Co.'s 2021 income from continuing operations before income taxes was $280,000. Howard Co. reported before-tax income on discontinued operations of $60,000. All tax items are subject to a 25% tax rate. In its income statement for 2021, Howard Co. would show the following line-item amounts for income tax expense and net income: A) $70,000 and $255,000 respectively. B) $55,000 and $220,000 respectively. C) $85,000 and $340,000 respectively. D) $85,000 and $255,000 respectively.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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36. Warren Electronics sells computers and provides hardware maintenance services. On April 1st, Warren i sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Warren Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly? A) $1,000 B) $870 C) $725 D) $30 -11- 37.) Howard Co.'s 2021 income from continuing operations before income taxes was $280,000. Howard Co. reported before-tax income on discontinued operations of $60,000. All tax items are subject to a 25% tax rate. In its income statement for 2021, Howard Co. would show the following line-item amounts for income tax expense and net income: A) $70,000 and $255,000 respectively. B) $55,000 and $220,000 respectively. C) $85,000 and $340,000 respectively. D) $85,000 and $255,000 respectively.
Transcribed Image Text:36. Warren Electronics sells computers and provides hardware maintenance services. On April 1st, Warren i sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $840 and the one-year unlimited maintenance/repair service costs $360. How much revenue does Warren Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly? A) $1,000 B) $870 C) $725 D) $30 -11- 37.) Howard Co.'s 2021 income from continuing operations before income taxes was $280,000. Howard Co. reported before-tax income on discontinued operations of $60,000. All tax items are subject to a 25% tax rate. In its income statement for 2021, Howard Co. would show the following line-item amounts for income tax expense and net income: A) $70,000 and $255,000 respectively. B) $55,000 and $220,000 respectively. C) $85,000 and $340,000 respectively. D) $85,000 and $255,000 respectively.
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