Midway Corporation Is Incorporated in Delaware,but It Has Its Principal

question 17

Multiple Choice

Midway Corporation is incorporated in Delaware,but it has its principal place of business in Minnesota.It does much of its business in California.For purposes of diversity of citizenship,Midway is a resident of:

• A) Delaware.
• B) Minnesota.
• C) both Delaware and Minnesota.
• D) Delaware,Minnesota,and California.

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Definitions:

Physical Inventory

The process of counting and verifying the actual quantities of merchandise or goods in stock.

Absorption Cost

An accounting method that assigns all manufacturing costs (both fixed and variable) to products, making them fully absorbed into the cost of goods sold.

Fixed Overhead

The portion of a company's fixed costs that are not directly tied to production levels, such as rent and insurance.

LIFO Reserve

The difference between the cost of inventory calculated under the Last-In, First-Out method and the FIFO method.