Use the Following Information for the Following Questions:
on April $\$ 700$

question 53

Multiple Choice

Use the following information for the following questions:
On April 1, Heavy Metal Corp. consigned 50 handcrafted benches to Disco Co. Heavy Metal’s cost was $ 350 per bench. Total freight costs were $ 700, which were paid by Disco. On August 1, Heavy Metal received a cheque for $ 14,100 from Disco which included the following information:
Number of units sold:..............................20
Expenses deducted:
Freight:.......................................................... $\$ 700$
Commission (20\% of sales price) ...............?
Advertising.................................................. $\$ 450$
Delivery....................................................... $\$ 290$
-Under the earnings approach, total sales were

• A) $ 15,540.
• B) $ 18,550.
• C) $ 19,060.
• D) $ 19,425.

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Definitions:

Capital Gain

The profit from the sale of property or an investment, calculated as the difference between the selling price and the purchase price.

Cash Dividend

A payout of a company's earnings to its shareholders in the form of cash.

AMT

Alternative Minimum Tax, a parallel tax system designed to ensure that individuals and corporations pay at least a minimum amount of taxes.

Alternative Minimum Tax

A parallel tax system designed to ensure that individuals and corporations that benefit from certain exemptions, deductions, or credits pay at least a minimum amount of tax.