A borrower has an opportunity to reduce the amount cash needed to purchase a house by borrowing an extra $10,000. The borrower finds that the incremental cost of borrowing the extra $10,000 is 14%. The borrower can earn 12% on alternative investments of comparable risk so he would be better off by not borrowing the extra $10,000. Which of the below choices is most correct? (A) The above conclusion is true
(B) Not enough information is provided to determine if the above conclusion is true
(C) The above conclusion is NOT true
(D) Depends on the length of the loan

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: