Aces inc., a manufacturer of tennis rackets, began operations this year. the company produced 5,500 rackets and sold 4,400. each racket was sold at a price of $85. fixed overhead costs are $68,750 and fixed selling and administrative costs are $64,700. the company also reports the following per unit variable costs for the year:

variable product costs $ 24.50
variable selling and administrative expenses $ 1.50

prepare an income statement under absorption costing.

aces inc.
absorption costing income statement
sales $374,000
less: variable costs
variable production costs
fixed overhead costs
cost of goods sold
gross margin
selling general and administrative expenses
fixed selling and administrative costs
variable selling and administrative expenses
net income (loss)

In year 1, the bennetts' 25-year-old daughter, jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. in previous years, jane has never worked and her parents have always been able to claim her as a dependent. in year 1, a kind neighbor offers to pay for all of jane's educational and living expenses. which of the following statements is most accurate regarding whether jane's parents would be allowed to claim an exemption for jane in year 1 assuming the neighbor pays for all of jane's support? a.no, jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.b.yes, because she is a full-time student and does not provide more than half of her own support, jane is considered her parent's qualifying child.c.no, jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.d.yes, because she is a student, her absence is considered as "temporary." consequently she meets the residence test and is a considered a qualifying child of the bennetts.