Selling the rights to use your company's brand name in return for a lump-sum payment and a share of the profits generated is referred to as:

Bill Sharpe, owner of Sharper Knives Inc, is closing his business at the end of the current fiscal year. His sole asset, the knife-sharpening machine, is three years old. A depreciation table for the asset is shown below

Bill has agreed to sell the machine at the end of the year for $100,000. What is the impact on taxes from the sale of the machine? (Assume that Sharper Knives claimed a regular depreciation expense in the calculation of income taxes.) The tax rate is 35%. Round your answers to the nearest dollar. Depreciation Table for Knife Sharpener Year Basis Rate Depreciation Expense Accumulated Depreciation 1 $250,000 14.29% $35,725 $35,725 2 $250,000 24.49% $61,225 $96,950 3 $250,000 17.49% $43,725 $140,675 4 $250,000 12.49% $31,225 $171,900 5 $250,000 8.93% $22,325 $194,225 A) $3,264 tax refund from IRS B) $3,264 additional taxes owing to IRS C) $14,236 tax refund from IRS D) $14,236 additional taxes owing to IRS E) $38,264 tax refund from IRS

Which of the following companies would be more likely to use the specific identification inventory costing method?

A) Gordon's Jewelers B) Lowe's C) Best Buy D) Wal-Mart