A Company Reported the Following

question 60

Multiple Choice

A company reported the following:

-Use the above information to answer the following question.What is the amount of income before income taxes?

• A) $9,500
• B) $32,700
• C) $13,000
• D) $17,500

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Definitions:

Consumer Surplus

The distinction between the expected total consumer spending on a product or service and the real total paid.

Trade

The exchange of goods, services, or both between two parties, whether within the interior of a country or across international borders.

Comparative Advantage

The economic principle that a country should specialize in producing and exporting goods in which it has a lower opportunity cost than other countries.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a primary energy source.