Tpw, a calendar year taxpayer, sold land with a $552,000 tax basis for $835,000 in february. the purchaser paid $92,000 cash at closing and gave tpw an interest-bearing note for the $743,000 remaining price. in august, tpw received a $61,550 payment from the purchaser consisting of a $37,150 principal payment and a $24,400 interest payment. assume that tpw uses the installment sale method of accounting. (a) compute the difference between tpw’s book and tax income resulting from the installment sale method. (b) is this difference favorable or unfavorable?

Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?

Royal motor corp. generates a major portion of its revenues by manufacturing luxury sports cars. however, the company also derives an insignificant percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. which of the following terms best describes royal motor corp.? a. aconglomerate b. a subsidiary c. adominant-businessfirm d. a single-business firm

After testing its water, a city water department issues a report to the related citizens, noting what chemicals have been identified, their doses, and the estimated risks of exposure at these levels. this report represents a type of