FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 1, Problem 49CP

a.

To determine

Explain the manner in which person K has arrived 30% of return and calculate the percentage of return if firm was purchased for $300,000.

b.

To determine

Indicate whether the amount of dividend would affect the reported net income of financial statements, and calculate the percentage of return if salary of $36,000 is taken into consideration.

c.

To determine

Indicate whether there is a legitimate reason for the difference between net income shown in financial statement and net income reported on the tax returns and explain the manner in which the firm might obtain additional assurance about the propriety of the financial statements.

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