Candy Corporation had pretax profits of $1.2 million, an average tax rate of 34 percent, and it paid preferred stock dividends of $50,000. There were 100,000 shares outstanding and no interest expense

Generally speaking, percentages should have one digit past the decimal point, while means should generally display no decimals past the decimal point.

a. true b. false

Duggan Corporation paid $600 for insurance at the beginning of December. The payment covered the months of December, January, and February. What would be the balance in the prepaid insurance account at the end of December if Duggan's accountant makes the correct adjusting entry?

a. $200 b. $400 c. $100 d. $600 e. $300