Isooky has a spotter truck with a book value of $40,000 and a remaining useful life of five years. at the end of the five years the spotter truck will have a zero salvage value. the market value of the spotter truck is currently $32,000. isooky can purchase a new spotter truck for $120,000 and receive $31,000 in return for trading in its old spotter truck. the new spotter truck will reduce variable manufacturing costs by $25,000 per year over the five-year life of the new spotter truck. the total increase or decrease in income by replacing the current spotter truck with the new truck (ignoring the time value of money) is:
a. $31,000 decrease
b. $36,000 decrease
c. $31,000 increase
d. $120,000 decrease
e. $36,000 decrease
f. $36,000 increase
g. $120,000 decrease
h. $36,000 increase

The struter partnership has total partners’ equity of $510,000, which is made up of main, capital, $400,000, and frist, capital, $110,000. the partners share net income and loss in a ratio of 80% to main and 20% to frist. on november 1, adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. prepare journal entries to record the admission of adison for a 15% interest in the equity and a 15% share in any income and loss under the following independent assumptions. (1) record the admission of adison with an investment of $90,000 for a 15% interest in the equity and a 15% share in any income and loss. (2) record the admission of adison with an investment of $120,000 for a 15% interest in the equity and a 15% share in any income and loss. (3) record the admission of adison with an investment of $80,000 for a 15% interest in the equity and a 15% share in any income and loss.

Andy owns islander surfboard inc. in the past, andy has always given his employees bonuses during the holidays if they reached certain sales goals. this year, even though the company is thriving, he decided to cut bonuses from employees and award them to himself instead. what ethical theory of leadership is andy following?

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)