The following data were provided by the accountants of the Home Office and Branch for the year ended December 31, 2016: Home Office Book Branch Book Net sales to outside customer 1,000,000 800,000 300,000 140,000 250,000 Beginning Inventory Net purchases from outside supplier Shipment to branch Shipment from Home Office Ending Inventory Operating expenses 800,000 400,000 500,000 100,000 200,000 200,000 100,000 The current corporate income tax rate is 30%. It is the policy of the company to use specific identification for inventory. For the year ended December 31, 2015, the Home Office bills its branch with a gross profit rate of 40% based on cost. Half of the beginning inventory of the branch was acquired from outside suppliers. The ending inventory of the branch is broken down as follows: 60% from outside suppliers 26% from 2016 shipment from home office 14% from 2015 shipment from home office 13. What is the net income of the branch in its books for the year end December 31, 2016? а. 77,000 b. 10,000 с. 7,000 d. 8,000

The following data were provided by the accountants of the Home Office and Branch for the year ended December 31, 2016: Home Office Book Branch Book Net sales to outside customer 1,000,000 800,000 300,000 140,000 250,000 Beginning Inventory Net purchases from outside supplier Shipment to branch Shipment from Home Office Ending Inventory Operating expenses 800,000 400,000 500,000 100,000 200,000 200,000 100,000 The current corporate income tax rate is 30%. It is the policy of the company to use specific identification for inventory. For the year ended December 31, 2015, the Home Office bills its branch with a gross profit rate of 40% based on cost. Half of the beginning inventory of the branch was acquired from outside suppliers. The ending inventory of the branch is broken down as follows: 60% from outside suppliers 26% from 2016 shipment from home office 14% from 2015 shipment from home office 13. What is the net income of the branch in its books for the year end December 31, 2016? а. 77,000 b. 10,000 с. 7,000 d. 8,000

Name: The following data were provided by the accountants of the Home Offic
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Description: The following data were provided by the accountants of the Home Office and Branch for theyear ended December 31, 2016:Home Office BookBranch BookNet sales to outside customer1,000,000800,000300,000140,000250,000Beginning InventoryNet purchases from

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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