Challenging Business Problems with Detailed Answers
in the current year, big burgers, inc., expanded its fast food operations by opening several new stores in texas. the company incurred the following costs in the current year: market appraisal ($64,000), consulting fees ($92,100), advertising ($60,100), and traveling to train employees ($39,900). the company is willing to incur these costs because it foresees strong customer demand in texas for the next several years. what amount should big burgers report as an expense in its income statement associated with these costs?
xun, yue and zhuo have interests in xyz partnership. partnership income for the year is $400,000. the partnership agreement specifies that xun is to receive an annual salary of $212,500, yue is to receive an annual salary of $42,500, and zhuo is to receive an annual salary of $170,000. any remaining income or loss is to be divided between the three partners in a 1:1:2 ratio. salaries are to be fully implemented. partnership income allocated to zhuo is: a. $200,000 b. $157,500 c. $170,000 d. $182,500