Use the Following Information for Questions
Hogan Corp Other Information:
Hogan's Income Tax Rate Is 30

question 33

Multiple Choice

Use the following information for questions
Hogan Corp.'s trial balance of income statement accounts for the year ended December 31, 2007 included the following: $\begin{array}{lr}&\text { Debit } & \text { Credit }\\\text { Sales }&&\$140,000\\\text { Cost of sales } & \$ 50,000 \\\text { Administrative expenses } & 25,000 \\\text { Loss on sale of equipment } & 9,000 \\\text { Commissions to salespersons } & 8,000\\\text { Interest revenue }&&5,000\\\text { Freight-out } & 3,000 \\\text { Loss due to earthquake damage } & 12,000 \\\text { Bad debt expense } & 3,000\\\text { Totals }&\$ 110.000 &\$ 145.000\\\end{array}$ Other information:
Hogan's income tax rate is 30%.Finished goods inventory: $\begin{array}{lr}\text { January } 1,2007 & \$ 80,000 \\\text { December } 31,2007 & 70,000\end{array}$ On Hogan's multiple-step income statement for 2007,
-Cost of goods manufactured is

• A)$63,000.
• B)$60,000.
• C)$43,000.
• D)$40,000.

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Definitions:

Scope of Employment

The range of activities and duties that an employee is reasonably expected to perform as part of their job.

Employer

An individual or organization that hires and compensates personnel for their services or work.

Use Force

The act of using physical power or violence to accomplish a goal or enforce a decision.

Expected

Pertaining to events or outcomes anticipated or considered likely to happen based on current evidence or trends.