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NEW QUESTION: 1
Which three statements are correct regarding a Cisco MPLS TE? (Choose three.)
A. CBR takes into account link resource and traffic tunnel attributes.
B. A Cisco MPLS TE tunnel maps onto an LSP path.
C. RSVP is used between customer routers.
D. Packets that are mapped into a Cisco MPLS TE tunnel will have two labels, with the top label indicating what the tail-end router should do with the packet.
E. Tunnels are bidrectional by default.
F. A tunnel that is created with a priority of 0 can pre-empt an existing tunnel with a priority of 7.
Answer: A,B,F

NEW QUESTION: 2
A company reduces the price of its product, hoping to increase its overall profits. When the quarterly numbers come in, the company sees that the decrease in price has led to a decrease in profits. It decides to change the price back to its original price, but profits still do not recover to their original levels. What happened?
A. The company experienced economies of scale at the lower price.
B. Demand has become more elastic since the first price change.
C. Demand has become less elastic since the first price change.
D. The price elasticity of demand was 1 before the first price change.
Answer: B

NEW QUESTION: 3
On December 31, Year 1, Health entities reported a US $150,000 warranty expense in its income statement. The expense was based on actual warranty cost of US$30,000 in Year 1 and expected warrant costs of US $35,000 in Year 2, US $40,000 in Year 3, and US $45,000 in Year 4. For tax purposes, warrant costs are not deductible until paid. At December 31, Year 1, deferred taxes should be based on a:
A. US $ 120,000 deductible temporary difference
B. US $ 150,000 taxable temporary difference
C. US $ 120,000 taxable temporary difference
D. US $ 150,000 deductible temporary difference
Answer: A
Explanation:
At year-end year 1, Health entities should report a US $120,000 warranty liability in its balance sheet. The warranty liability is equal to the US $150,000 warranty expense minus the US $30,000 warrant cost actually incurred in Year 1. Because warranty costs are not deductible until paid, the tax base of the warranty liability is 0. The result is a US $120,000 temporary difference US$120,000 carrying amount tax base). When the liability is settled through the actually incurrence of warranty costs, the amounts will be deductible. Thus, the temporary difference should be classified as a deductible temporary difference.