Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming​ year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor ​$320,000 Direct laborhours ​800,000 Machine maintenance ​$120,000 Machinehours ​960,000 Facility rent ​$200,000 Square feet of area ​100,000 Total overhead costs ​$640,000 The accounting records show the Mossman Job consumed the following​ resources: Cost driver Actual level Direct laborhours 200 Machinehours ​1,600 Square feet of area 50 Which method of allocation probably best estimates actual overhead costs​ used? Why? A. Single direct laborhours cost driver because it is best to allocate total costs uniformly to individual jobs. B. Single direct laborhours cost driver because it is easiest to analyze and interpret. C. Three activitycost drivers because they best reflect the relative consumption of resources. D. Three activitycost drivers because product costs can be significantly crosssubsidized.

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.

In a chapter 7 bankruptcy, a debtor:

The basic difference between macroeconomics and microeconomics is that: a. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets). b. macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. c. microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). d. macroeconomics is concerned with generalization while microeconomics is concerned with specialization.