Very early in 2018, while developing software for sale to others, after achieving technological feasibility but before the commencement of commercial production, x company incurred $320,000 to produce product masters and to test the software. x company estimated that the software will be sold for a total of 10 years. after nearly a full year of selling, x had revenues from software sales of $120,000 in 2018. sales in future periods are expected to amount to $680,000. costs associated with producing and packaging the software approximate 10% of revenues. what portion, if any, of the $320,000 will be recognized in income in 2018?
a. $48,000
b. $32,000
c. $0
d. $320,000

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Describe the three different ways the argument section of a cover letter can be formatted