Answer the Following Questions Using the Information Below:
Carriage Incorporated

question 144

Multiple Choice

Answer the following questions using the information below:
Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2015:
$$\begin{array} { | l | r | r | r | r | } \hline & { \text { ASSETS } } && { \text { INCOME } } \\\hline & \text { Book value } & \text { Current value } & \text { Book value } & \text { Current value } \\\hline \text { Wheels } & \$ 485,000 & \$ 550,000 & \$ 120,000 & \$ 140,000 \\\hline \text { Assembly } & \$ 750,000 & \$ 1,200,000 & \$ 160,000 & \$ 172,500 \\\hline\end{array}$$ The company is currently using a 12% required rate of return.
-What are Wheels's and Assembly's residual incomes based on book values,respectively?

• A) $74,000; $28,500
• B) $61,800; $70,000
• C) $63,500; $59.500
• D) $28,500; $74,000

Calculate cost of goods sold and understand its impact on gross profit.

Understand the significance of nonoperating income and expenses on overall financial performance.

Understand the difference and similarities between perpetual and periodic inventory systems.

Calculate Cost of Goods Sold and Gross Profit for different accounting periods.

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Definitions:

Moderate Emotions

The regulation of emotional responses to maintain a balance in feelings and reactions in different situations.

Schedule Discussions

The planned setting of time and place for conversations to address specific topics or issues, promoting effective communication.

Acknowledge Viewpoint

The recognition and consideration of another person's perspective or opinion.

Life-Expectancy

The average period an individual is expected to live, based on statistical measures that consider factors like age, gender, and health.