On March 15,20X7,Barrel Company Paid Property Taxes of $120,000 on Its

question 17

Multiple Choice

On March 15,20X7,Barrel Company paid property taxes of $120,000 on its factory building for calendar year 20X7.On July 1,20X7,Barrel made $20,000 in unanticipated repairs to its machinery.The repairs will benefit operations for the remainder of the calendar year.What total amount of these expenses should be included in Barrel's quarterly income statement for the three months ended September 30,20X7?

• A)$30,000
• B)$35,000
• C)$40,000
• D)$50,000

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Definitions:

Trade

The exchange of goods and services between individuals or entities, either within the same country or internationally.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased given a consumer's income and the prices of the goods.

Price

The sum of money anticipated, needed, or provided as payment for an item.

Shift Outward

An economic term referring to the expansion of a production possibility frontier, indicating an increase in an economy's capacity to produce.