Deep Water Mining Added $411 to Retained Earnings Last Year

question 10

Multiple Choice

Deep Water Mining added $411 to retained earnings last year on sales of $24,646.The administrative expenses were $4,370,depreciation was $812,dividends paid were $285,and the interest expense was $103.What was the cost of goods sold if the total tax rate was 23 percent?

• A)$20,225
• B)$24,385
• C)$18,457
• D)$14,815
• E)$21,393

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Definitions:

Unregulated Market

A market where economic activities are not controlled by government policies or restrictions.

Imperfect Information

A market condition where all parties do not have equal access to all relevant information, leading to inefficiencies.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Imperfect Information

A situation in which all parties in a transaction do not have the same information, leading to inefficiencies in markets.