Pumpkin Enterprises Began Operations on January 1, 20x1, with All

question 12

Multiple Choice

Pumpkin Enterprises began operations on January 1, 20x1, with all of its activities conducted from a single facility. The company's accountant concluded that the year's building depreciation should be allocated as follows: selling activities, 20%; administrative activities, 35%; and manufacturing activities, 45%. If Pumpkin sold 60% of 20x1 production during that year, what percentage of the depreciation would appear (either directly or indirectly) on the 20x1 income statement?

• A) 27%.
• B) 45%.
• C) 55%.
• D) 82%.
• E) 100%.

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Definitions:

North America

A continent in the northern hemisphere, bounded by the Arctic Ocean, Atlantic Ocean, and the Pacific Ocean, including countries like Canada, the United States, and Mexico.

Caribbean

A region consisting of the Caribbean Sea, its islands, and the surrounding coasts, known for its diverse cultures, languages, and historical significance.

European Nations

Countries located on the continent of Europe, each with its distinct government, culture, and history.

French Trading

The act or process of buying, selling, or exchanging commodities, at either wholesale or retail, within France or between France and other countries.