When the firms in the industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, economic profits will be negative in the long run. True/False

Taylor Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31.

Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers $ 3,600 Interest on investments 320 Sale of land 220 Sale of Rowdy's capital stock 840 Issuance of debt securities 3,200 Cash paid for: Interest on debt $ 420 Income tax 200

On September 30, Year 1, Payne, Inc. exchanged some of its shares for all of the common stock of Salem, Inc. in a business combination. Salem continued as a wholly owned subsidiary of Payne.

At Tony and Cleo's bakery, one kind of birthday cake is offered. It takes 15 minutes to decorate this particular cake, and the job is performed by one particular baker. In fact, it is all this baker does.

Fifo is preferred when purchase costs are rising and managers have incentives to report higher income for reasons such as bonus plans, job security, and reputation. a. True b. False

Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?

A tip of $10 is best for which kind of service? A. a mover who delivers furniture to your new home B. a valet who parks your car at a restaurant C. a waiter at a fast-food restaurant

Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division.

Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.

Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar.