Frasier and Marcella, husband and wife, file separate returns. Frasier and Marcella live in a community property state that considers separate property income to be separate. Frasier's salary is $32,000 and Marcella's salary is $35,000. Marcella receives dividend income of $4,000 from stock inherited from her parents. Frasier
7. The regular standard deduction amount is available to which one of the following taxpayers? a. Married taxpayer filing a separate return where the other spouse itemizes. b. A person who has only unearned income and is a dependent of another. c.
Agribiz Food Products, Inc., produces a wide variety of food and related products. The company's tomato canning operation relies partly on tomatoes grown on Agribiz's own farms and partly on tomatoes bought from other growers. Agribiz's tomato farm is on the edge of Sharpestown, a fast-growing, medium sized city. It produces
Please check the attached file. The question is on Cost Accounting related with Contribution margin. Because of the opportunities created for competition by the merger between Air Canada and Canadian Airlines, East-West Air is about to introduce a daily round-trip flight on the Toronto-to-Vancouver route. East-West Air offers
Many people believe the budgeting process is wasteful and ineffective. They maintain that managers spend too much time focusing on budgeting mechanics and not enough on strategic issues. They believe that emphasis on the budgeting process causes managers to neglect more important matters, such as eliminating nonvalue-adding act
Multiple Choice and Tax Credits : George and Jill are husband and wife, ages 67 and 65 respectively.
1. George and Jill are husband and wife, ages 67 and 65 respectively. During the year, they receive Social Security benefits of $4,000 and have adjusted gross income of $11,000. Assuming they file a joint return, their tax credit for the elderly, before considering any possible limitation due to their tax liability, is: a. $1
Economic ordering quantity (EOQ) is a commonly used method for optimizing the inventory costs with ordering costs. As the production manager for the organic juice line, you will need to determine the optimal order quantity. If the annual demand for organic orange juice at Ross and Pugett is 200,000 units, the annual carrying cos
After realization of a portion of the non cash assets of Bemis, Coppo & Dipp LLP, which was being liquidated, the capital balances were Bemis, 54,600; Coppo, 40,500; and Dipp, 17,000. Cash of 34,100 and other assets with a carrying amount of 98,000 were on hand. Creditors' claims totaled 20,000. Bemis, Coppo, and Dipp share net
Gray Industries (a sole proprietorship) sold three 1231 assets during 2008. Data on these property dispositions are as follows: ASSET COST ACQUIRED DEPREC SOLD FOR SOLD ON RACK 100,000 10-10-04 70,000 75,000 10-10-08 FORKLIFT 35,000 10-16-05 23,000 5,000 10-10-08
Carmen, a single taxpayer, has $80,000 in salary, $10,000 in income from a limited partnership, and a $30,000 passive loss from a real estate rental activity in which she actively participates. Her modified adjusted gross income is $80,000. Of the $30,000 loss, Carmen may deduct: a. $0. b. $10,000. c. $25,000. d. $30,000. e
R.E.C. Inc.'s staff of accountants finished preparing the financial statements for 2007 and will meet next week with the company's CEO as well as the Director of Investor Relations and representatives from the marketing and art departments to design the current year's annual report. Write a report in which you present the mai
Ahmad is considering making a $1,000 investment in a venture which its promoter promises will generate immediate tax benefits for him. Ahmad, who normally itemizes his deductions, is in the 28% marginal tax bracket. If the investment is of a type where the taxpayer may claim either a tax credit of 25% of the amount of the expend
Leon sells his interest in a passive activity for $100,000. Determine the tax effect of the sale based on each of the following independent facts: a. Adjusted basis if this investment is $35,000. Losses from prior years that were not deductible due to the passive loss restrictions total $40,000. b. Adjusted basis in this
Ray owns a business with two separate departments. Department A produces $100,000 of income and Department B incurs a $60,000 loss. Ray participates for 550 hours in Department A and 100 hours in Department B. He has full-time employees in both departments. Which of the following statements is correct? a. If Ray elects to trea
What kind of exact corrections should be made to fix the situation at the year-end balance? and why?
Cincinnati Tool Company (CTC) manufactures a line of electric garden tool that are sold in general hardware stores. The company's controller, Will Fulton, has just received the sales forecast for the coming year for CTC's three roducts: hedge clippers, weeders, and leaf blowers. CTC has experienced comsiderable variations in s
Raw Materials account 10-17 (Appendix) Schaper Corporation has provided the following data concerning its most important raw material, compound D30X:
(Appendix) Schaper Corporation has provided the following data concerning its most important raw material, compound D30X: Standard cost, per liter $47.80 Standard quantity, liters per unit of output 8 Cost of material purchased in December, per liter $50.70 Material purchased in December, liters 3,930 Material
Question 10: Mayall Corporation is developing standards for its products. Each unit of output of the product requires 0.9 kilogram of a particular input. The allowance for waste and spoilage is 0.03 kilogram of this input for each unit of output. The allowance for rejects is 0.11 kilogram of this input for each unit of outpu
Perry-A Company sells two products, as follows: Selling Price Variable Expense Product per Unit per Unit AAA-11 $500 $200
At the current level of sales, Melloroid Company has a safety margin of $80,000. Variable expenses are 35% of sales and the breakeven point in sales dollars is $600,000. Given this information, what is the net operating income at the current level of sales? A) $91,000 B) $52,000 C) $49,000 D) $39,000
When Finer Form Company sold 50,000 units of product for $10 per unit, the contribution margin ratio was 30% and net income was $120,000. What was the total fixed costs?
Given the computations for both gross profit on sales and contribution margin, what benefits come from gross profit on sales instead of contribution margin? Is net income always the same no matter what the accounting approach is? Let me give you a simple example. Look at the income statements below before you answer the ques
Widget corp. supplies widget kits retailers. Faces decision regarding purchase of kits from the manufacturer. monthly demand = 3600 units ordering costs = $25 holding cost per unit per month = $0.45 purchase price per unit = $0.85 per unit discount price = $0.82 per unit quantity needed to qualify for discount = 6000 uni
Twisto Pretzel Company disposes of under or over applied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $600,000 in a year when manufacturing overhead was overapplied by $18,000. If sales revenue totaled $1,400,000, determine gross margin.
1. Unitized Costs Suppose you are a manager in a manufacturing company. Your accountant has just presented you with a very detailed cost analysis for a decision whether to outsource or make a component of a product. You have to use this analysis in a meeting with other managers. Since the analysis is shown in totals and your
Zeke made the following donations to qualified charitable organizations during 2007: Basis Fair Market Value Used clothing (all acquired before 2006) of taxpayer and his family $ 2,350 $ 675 Stock in ABC, Inc., held as an investment for fif
Please see the attached file. 1. Make or Buy Suppose a BMW executive in Germany is trying to decide whether the company should continue to manufacture an engine component or purchase it from Frankfurt Corporation for 50 euros each. Demand for the coming year is expected to be the same as for the current year, 200,000 units.
See the attached file The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. If the company has budgeted to sell 24,000 units of Product SW in September, then the total budgeted fixed se
Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: - Sales are budgeted at $450,000 for November, $380,000 for December, and $280,000 for January. - Collections are expected to be 87% in the month of sale, 8% in the
Question 12: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $182,000. The desired ending cash balance is $40,000. To attain its desired ending cash balance for January, the company shou