The aging-of-receivables method is a balance sheet approach of estimating uncollectible accounts

Which of the following statements about cost allocation is most correct?

a. The direct method of allocation recognizes services provided by support departments to one another. b. A cost driver is any grouping of overhead costs that must be allocated. c. The reciprocal method of allocation represents a compromise between the direct method and the step-down method. d. A cost pool is the total amount of direct costs incurred by one of the patient service departments. e. None of the above statements are correct.

Mr. Smith bought a property for $72,000 with a $20,000 cash down payment and a $52,000 loan. The loan did not require interest and did not require any payments for one year. One year later, he sold the property for double its purchase price. Each dollar of his original cash investment is now equal to:

A: $2.00; B: $4.60; C: $7.30; D: $9.20.