Austin Corporation, a U

question 96

Multiple Choice

Austin Corporation, a U.S. corporation, received the following investment income during 2014: $50,000 of dividend income from ownership of stock in a French corporation, $20,000 interest on a loan to its Dutch subsidiary, $40,000 royalty from its 50-percent owned Irish venture, and $30,000 capital gain from sale of its stock in a Brazilian corporation. How much foreign source income does Austin have in 2014?

• A) $140,000
• B) $110,000
• C) $70,000
• D) $60,000

Analyze the effect of different bases (machine-hours, direct labor-hours) on overhead rate calculation and job costing.

Understand the principles of job-order costing.

Calculate predetermined overhead rates for different departments or activities.

Allocate manufacturing overhead to specific jobs based on relevant activity bases.

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Definitions:

Binding Decision

A final and enforceable decision made by an authority such as a court or arbitrator, from which parties cannot deviate.

ADR Systems

Alternative Dispute Resolution systems are methods of resolving disputes without traditional litigation, including mediation and arbitration.

Formal Third-party Intervention

The involvement of an external, neutral party in a dispute or negotiation to help resolve differences or facilitate an agreement.

Surrender Control

The act of relinquishing authority, power, or management over something to someone else.