As Part of a Promotion Campaign,Funzy Cereal Includes One Coupon

question 110

Multiple Choice

As part of a promotion campaign,Funzy Cereal includes one coupon in each issue of various national magazines and offers a toy car in exchange for $1.00 and three coupons.The cars cost Funzy $1.50 each.Experience indicates that 4% of the coupons eventually will be redeemed.During the last month of 2013,the first month of the offer,12 million coupons were distributed and 240,000 million of the coupons were redeemed.What amount should Funzy report as a promotional expense for coupons on its December 31,2013,income statement?

• A)$ 0.
• B)$ 40,000.
• C)$ 80,000.
• D)$120,000.

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Definitions:

Death Of A Child

A profoundly devastating event involving the loss of a son or daughter of any age, which can have significant emotional and psychological effects on the family.

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Death Of A Parent

A significant and often traumatic event in an individual's life, leading to profound emotional, psychological, and sometimes financial consequences.

Sandwich Generation

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