*ADVANCED ACCOUNTING
*ADVANCED ACCOUNTING
7th Edition
ISBN: 9781119626480
Author: JETER
Publisher: WILEY
Question
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Chapter 5, Problem 14P

A.

To determine

Journalize the entry made by WD Company.

B.

To determine

Draft a consolidated income statement for year ended December 31, 2012.

C.

To determine

Describe the effect that the decision will have in the following items.

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What is the result of this disposal transaction?
StriveTech Co. uses the high-low method to analyze cost behavior. The company observed that at 18,000 machine hours of activity, total maintenance costs averaged $28.00 per hour. When activity increased to 22,000 machine hours (still within the relevant range), the average total cost per machine hour dropped to $25.00. Based on this information, the fixed cost was:
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