Nolan owns 100% of the capital stock of both twill corp. and webb corp. twill purchases merchandise inventory from webb at 140% of webb’s cost. during year 2, merchandise that cost webb $40,000 was sold to twill. twill sold all of this merchandise to unrelated customers for $81,200 during year 2. in preparing combined financial statements for year 2, nolan’s bookkeeper disregarded the common ownership of twill and webb. by what amount was unadjusted revenue overstated in the combined income statement for year 2? a. $16,000b. $81,200c. $40,000d. $56,000

Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

Nextdoor is an instant messaging application for smartphones. new smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications. hence, it has the largest user base in the industry. thus, nextdoor app's value has increased primarily due to itsa. learning curve effects. b. economies of scale. c. economies of scope. d. network effects.