The Following Events Took Place in Morgan Corporation's Second Quarter

question 41

Essay

The following events took place in Morgan Corporation's second quarter.
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a.An expired insurance policy was replaced by a $12,000, 12-month policy.?
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b.Morgan sold marketable securities at a $10,000 gain.?
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c.Research and development costs of $15,000, which were expected to benefit the company over the next 12 months, were incurred.?
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d.On the first day of the quarter, Morgan signed a one-year, $100,000 bank note carrying an 8% interest rate.?
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e.Used equipment with a book value of $36,000 was sold for $18,000.?
Required:
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Determine the effect of the above events on Morgan Corporation's second-quarter income.

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Definitions:

Promotional Element

A component of a marketing strategy focused on communicating the value of a product or service to potential customers to increase awareness and sales.

Product Characteristic

Specific attributes or features that define a product and distinguish it from competitors.

Technical Sophistication

The level of advanced technical knowledge and capability incorporated into products, processes, or services.

Complexity

A characteristic of systems or situations that involves multiple interrelated parts, making them difficult to understand, predict, or manage.