Marian Corporation Has Two Separate Divisions That Operate as Profit

question 149

Multiple Choice

Marian Corporation has two separate divisions that operate as profit centers.The following information is available for the most recent year: The Black Division occupies 20,000 square feet in the plant.The Navy Division occupies 30,000 square feet.Rent is an indirect expense and is allocated based on square footage.Rent expense for the year was $50,000.Compute departmental income for the Black and Navy Divisions,respectively.

• A)$52,000;$163,000.
• B)$172,000;$352,000.
• C)$72,000;$163,000.
• D)$72,000;$193,000.
• E)$100,000;$241,000.

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Definitions:

Payroll Tax

Assessments required from employers or their employees, usually expressed as a percentage of the remuneration that staff earn.

Federal Income Taxes

Taxes levied by the national government on individual and business earnings.

Married Couple

A legally recognized union between two individuals, typically involving a public declaration of commitment.

Transfer Payments

Payments made by governments to individuals or other sectors in the economy, typically without any goods or services being received in return.