Posner Co. is a retail store operating in a state with a 7% retail sales tax. Posner Co. records the sales tax in the Sales Revenue account. The amount recorded in the Sales Revenue account during May was $754,350.

	A.	$62,286
	B.	$49,350
	C.	$67,893
	D.	$52,806

Clean Gas is involved with innovative approaches to finding energy reserves. Clean Gas recently built a facility to extract natural gas at a cost of $12 million. However, Clean Gas is also legally responsible to remove the facility at the end of its useful life of twenty years. This cost is estimated to be $17 million (the present value of which is $6.5 million). What is the journal entry required to record the asset retirement obligation?

	A.	No journal entry required.
	B.	Debit Natural Gas Facility for $17,000,000 and credit Asset Retirement Obligation for $17,000,000.
	C.	Debit Natural Gas Facility for $5,000,000 and credit Asset Retirement Obligation for $5,000,000.
	D.	Debit Natural Gas Facility for $6,500,000 and credit Asset Retirement Obligation for $6,500,000.

Maddy Companys 12/31/21 balance sheet reports assets of $12,000,000 and liabilities of $5,000,000. All of Maddys assets book values approximate their fair value, except for land, which has a fair value that is $800,000 greater than its book value. On 12/31/21, Egbert Corporation paid $12,200,000 to acquire Maddy. What amount of goodwill should Egbert record as a result of this purchase?

	A.	$ -0-
	B.	$ 200,000
	C.	$4,400,000
	D.	$5,200,000