Chapter 1.2, Problem 2AYU

What is the residual income for the dish washer devision?

Boyne Inc. had beginning inventory of $13,300 at cost and $28,900 at retail. Net purchases were $155,790 at cost and $187,200 at retail. Net markups were $12,400; net markdowns were $7,200; and sales revenue was $156,900. Required: Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purposes to 0 decimal places and final answer to 0 decimal places)

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Which of the following is not a finding of previous empirical research on income tax allocation? A) Income using income tax allocation had a higher degree of association with security price behavior than income determined without income tax allocation. B) The net-of-tax method using a tax rate significantly higher than existing rates had a higher association with security prices than income tax allocation using existing rates. C) There was a better association of net deferred tax liabilities to firm value under SFAS No. 109 than under its predecessor when tax rates increased under the Revenue Reconciliation Act of 1993. D) Investors do not view deferred tax liabilities as real liabilities.

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Calculate the average unit cost.

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