Simba and Zola are married but file separate returns. Simba received $53,200 of salary and $9,900 of taxable dividends on stock he purchased in his name and paid from the salary he earned since the marriage. Zola collected $2,900 in taxable interest on a certificate of deposit she inherited from her aunt. Compute Zola's gross income under two assumptions as to the state of residency of the couple.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?