The Following Is Selected Information from C Corporation for the Fiscal

question 143

Multiple Choice

The following is selected information from C Corporation for the fiscal year ending October 31 2022. $\begin{array}{|l|lcc|} \hline \text { Cash received from customers } &\$150,000\\\hline \text { Revenue recognized } & 225,000\\\hline \text { Cash paid for expenses } &85,000\\ \hline\text { Cash paid for computers on November 1, 2021 that } & { }\\ \text { will be used for 3 years } & 24,000\\\hline \text { Expenses incurred including any depreciation } & 119,000\\\hline \text { Proceeds from a bank loan, part of which was used to } & \\\hline \text { pay for the computers } &50,000\\\hline \end{array}$
Based on the accrual basis of accounting what is C Corporation's net income for the year ending October 31 2022?

• A)$132000
• B)$116000
• C)$106000
• D)$140000

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Definitions:

Machine-Hours

A unit of measure representing the operation time of a machine, often used in allocating manufacturing costs based on machine usage.

Fixed Overhead Volume Variance

The difference between the budgeted fixed overhead and the applied fixed overhead, which is attributed to the variance in the volume of production.

Standard Labor-Hours

A measurement used in accounting to represent the number of labor hours expected to produce one unit of output.

Manufacturing Overhead Applied

The allocation of manufacturing overhead to specific jobs or product units based upon the predetermined overhead rate.