Daniels Corporation Used the Following Data to Evaluate Their Current

question 36

Multiple Choice

Daniels Corporation used the following data to evaluate their current operating system.The company sells items for $18 each and had used a budgeted selling price of $19 per unit.

What is the static-budget variance of operating income?

• A)$325,000 favorable
• B)$325,000 unfavorable
• C)$316,000 favorable
• D)$316,000 unfavorable

---

Definitions:

Wash Sale

A tax term referring to the sale of a security at a loss and the repurchase of the same, or substantially the same, security shortly before or after, which disallows the claim of the loss for tax purposes.

Substantially Identical

Refers to property or securities that are nearly the same, often used in tax rules concerning wash sales.

Fair Market Value

The price at which an asset would sell on the open market between a willing buyer and a willing seller.

Rental Business

An entrepreneurial activity where an individual or entity rents out properties or equipment to others for a profit.