The following information pertains to maynard corporation’s income statement for the 12 months just ended. the company has an effective income tax rate of 40%.
discontinued operations $(70,000)
extraordinary loss due to earthquake (90,000)
income from continuing operations (net of tax) 72,000
cumulative effect of change in accounting principle 60,000
maynard’s net income for the year is

a. $8,000
b. $(24,000)
c. $12,000
d. $36,000

C. $12,000

Explanation:

Income from continuing operation: 72,000

discontinued operation    (70,000)

earthquake loss                (90,000)

total non-operating loss: (160,000)

tax shield of 40%                64,000

net non-operating             (96,000)

adjustment on accounting principle: 60,000

then, we apply tax rate of 40%:      (24,000)

net effect on shift of accounting principle: 36,000

Net income for Maynard:

72,000 - 96,000 + 36,000 = 12,000

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'