Question 1: Solve and explain the followings:

1. A client bill for product is being sent: Sales total $500; discount 1% if invoice is paid in 10 days (1/10); missing the discount invoice to be paid in full in 30 days (n/30). Calculate the discount and journalize the sales.

2. Explain the concept of: a) business nexus and b) economic nexus.

3. Explain LIFO, FIFO, average, and specific ID cost flow of inventory.

4. Compute Depreciation and gain or loss if cost of the building is $100,000; no salvage value; using useful life 27.5; sold for $150,000 13 years later. Ignore MACRS (Method of depreciation used for tax purposes.)