6. William Corporation, which has a fiscal year ending
January 31, had the following pretax accounting income and estimated effective
annual income tax rates for the first three quarters of the year ended January
31, 2008:
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William’s income tax expenses in its interim income statement for the third
quarter are:
A. $36,000.
B. $73,500.
C. $46,500.
D. $120,000.
7. On June 30, 2008, String Corporation incurred a
$220,000 net loss from disposal of a business component. Also, on June 30,
2008, String paid $60,000 for property taxes assessed for the calendar year
2008. What amount of the preceding items should be included in the
determination of String’s net income or loss for the six-month interim period
ended June 30, 2008?
A. $250,000
B. $220,000
C. $140,000
D. $280,000
8. Trevor Company discloses supplementary operating segment
information for its three reportable segments. Data for 2008 are available as
follows:
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Additional 2008 expenses include indirect operating expenses of $200,000.
Appropriately selected common indirect operating expenses are allocated to
segments based on the ratio of each segment’s sales to total sales. The 2008
operating profit for Segment B was:
A. $180,000
B. $120,000
C. $150,000
D. $250,000
9. Trevor Company discloses supplementary operating
segment information for its three reportable segments. Data for 2008 are
available as follows:
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Allocable costs for the year was $180,000. Allocable costs are assigned based
on the ratio of a segment’s income before allocable costs to total income
before allocable costs. The 2008 operating profit for Segment B was:
A. $110,000
B. $180,000
C. $126,000
D. $120,000
10. Trimester Corporation’s revenue for the year ended
December 31, 2008, was as follows:
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Trimester has a reportable operating segment if that segment’s revenue
exceeds:
A. $65,500
B. $60,000
C. $64,500
D. $61,000
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