Holliday Company's Inventory Records Show the Following Data A Physical Inventory on December 31 Shows 2,000 Units on Units

question 16

Multiple Choice

Holliday Company's inventory records show the following data:
$\begin{array}{llr}&\text { Units }&\text { Cost/unit }\\\text { Inventory, }\text { January 1 } & 5,000 & 4.50 \\\text { Purchases: }\text { June } 18 & 4,500 & 4.00 \\\text { November } 8 & 3,000 & 3.50\end{array}$
A physical inventory on December 31 shows 2,000 units on hand. Holliday sells the units for
$£ 6$ each. The company has an effective tax rate of $20 \%$ . Holliday uses the periodic inventory
method. If the company uses FIFO, what is the gross profit for the period?

• A) \(£ 1,000\)
• B) \(£ 5,000\)
• C) \(£ 10,500\)
• D) \(£ 19,000\)

Explain the relationship between income distribution and economic incentives, such as labor market participation and productivity.

Grasp the theoretical implications of perfect income equality and the potential consequences on economic productivity and individual incentives.

Understand the dynamics of income mobility and its impact on the assessment of income inequality over time.

Recognize the role of government in addressing income inequality and the debates surrounding policy interventions.

---

Definitions:

Type I Error

An error that occurs in hypothesis testing when a true null hypothesis is incorrectly rejected.

Type II Error

Occurs when a false null hypothesis is not rejected, meaning a real effect or difference is missed in a study or test.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Acquitting

The legal act of freeing an individual from a charge of an offence by a verdict of not guilty.