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Accounting

Taxes

P11-3B John's Drug Store has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours a week. Payroll data for the week ended February 15, 2010, are presented below: Employees: Hours Worked: Hourly Rate: Fed Inc Tax Withholdings: United Fund: T

Sources of Evidence of CPA

What are the sources of evidence a CPA uses in judging whether there is sufficient authoritative support for applying an accounting principal to a transaction or set of transactions recorded in a client's books?

Determine the minimum transfer price

The heating division of the ITA international produces a heating element that it sells to its customers for $42 per unit. Its variable cost per unit is $19, and its fixed cost per unit is $10. Top management of ITA International would like the Heating Division to transfer 15,000 heating units to another division within the compa

Tax Issues Identified

Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.(need two questions for each situation) 1.Guenther is researching a tax issue involving the deductibility of costs to remodel an office building. He has found several authorities permitting such costs to be de

Citing a Tax Appeal Case

Find a 2006 10th Circuit Court of Appeals decision involving Roger L. Watkins and answer the following questions: a.What is the complete citation to the case? b.What is the citation to the original trial court decision to which this appeal relates? c.In your own words, explain the basic tax issues addressed in the case.

Applications of Accounting Concepts: Match concept to action

An accountant for a company makes the assumptions or performs the activities listed below. Match which of the following concepts of accrual accounting most directly relates to each assumption or action: a) Periodicity b) Going concern c) Matching rule d) Revenue recognition e) Deferral f) Accrual 1. In estimating the

Activity-based costing..

Which of the following statements is correct? A) Traditional costing systems allocate both manufacturing costs and non-manufacturing costs B) Activity-based costing systems allocate only manufacturing costs C) Activity-based costing systems allocate both manufacturing costs and non-manufacturing costs D) Traditional costin

Increase in Production Accounting

A 15% increase in production will result in: A) a 15% increase in the variable cost per unit B) a 15% increase in total mixed costs C) a 15% increase in total manufacturing costs D) a 15% decrease in total variable costs E) none of the above.

Gift Tax Consequences

One of your clients, David, has been trying to convince his mother, Lorinda, to give him a tract of undeveloped land. Lorinda is willing to make the gift, but she is uncertain about the tax consequences involved. In any event, she wants David to pay any gift tax that would result. The land was purchased by Lorinda

Question about Variance calculations

Part A Rapache Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost system. In May 2008, 11,200 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.

Discuss four Accounting Regulatory Bodies, and organization's compliance.

Write a paper in which you examine at least four accounting regulatory bodies and discuss how an organization complies with the standards of the regulatory bodies you selected. This must be completed using original work. Cite at least two references. Format your paper according to APA standards.

Residual operating income

The Coca-Cola Company reported an after-tax profit margin of 20.0 percent on its sales of $24,088 million in 2006. It also reported $102 million of other core income, mainly from equity investments in its bottling companies. Further analysis of its financial statements reveals an asset turnover (on net operating assets) of 1.32.

Net Operating Assets

A firm reports $3,721 million of net operating assets and %560 million of net financial obligations at the end of 2008. Its 105 million shares outstanding trade at $53 each. You expect its current core RNOA of 18.6 percent to continue at the same level in the future and also expect net operating assets to grow at 4 percent per y

Standard Cost System/Overhead Variances

Study Appendix 13 The Winnipeg Chemical Company uses flexible budgets and a standard cost system. ? Direct-labor costs incurred, 12,000 hours, $150,000 ? Variable-overhead costs incurred, $37,000 ? Fixed-overhead flexible-budget variance, $1,600, favorable ? Finished units produced, 1,800 ? Fixed-overhead costs incur

Should the factory produce simple of premium cola?

A factory processes raw honey into syrup and "simple" cola. A batch consists of 10,000 gallons of honey, costing $7,000. Processing costs are $40,000, and results in 8,000 gallons of syrup and 2,000 gallons of "simple" cola. Raw material and processing costs are allocated to the two products (Syrup and "Simple" Co

Planning an Event from an Accounting Perspective

We are planning a fundraiser. We plan to charge $15 per ticket. We can rent a facility for $300. Catered food will cost of $4 per meal, plus $100 for setting up the equipment. A band would be hired to play for $200 plus 5% of the "gate" (gross ticket sales). The fundraiser would like to net at least $4,000 from th

Provide some examples of accounting estimates

1-Provide some examples of accounting estimates. What is the "preferred" approach for changes in accounting estimates? 2-What is the proper treatment for reporting a change in entity? 3-In recent years, the Wall Street Journal has indicated that many companies have changed their accounting principles. What are the major reason

Total savings from using new machine

(Ignore taxes and the time value of money in this problem.) Harrison Architects is considering the purchase of a new special laser printer to replace the old printer the company uses to make construction blueprints. Selected information on the two machines is given below: Old Machine New Machine Original cost when new $13,

Calculating Profit Sharing Contributions

Peteresbourgh Medical Devices makes devices and equipment that it sells to hospitals. The organization has a profit sharing plan that is worded as follows: The company will make available a profit sharing pool that will be the lower of the following two items: 1.) 40% of income before taxes in excess of the target profit level,

Gains recognized for significant experience

Beth and Ben are equal partners in the BB partership, formed on June 1 of the current year. Ben contributed land that he inherited form his father 3 years ago. Ben's father purchased the land in 1950 for $6,000. The land was worth $50,000 when Ben's father died. The fair market value of the land was $75,000 at the date it wa

Ryan Company: Compute net incoem at various transfer prices

Ryan Company that has two divisions M & N. Product X is manufactured in US and sold domestically and to division N in France as well. A total of 900 units of X is produced and sold at $410 a unit in the U.S. Division N requires 300 units of X. Ryan Company has a total capacity of 1200 units. The company estimates the cost to

Residual income and EVA

See attached file. Saba Signs Company has provided the following data: The company requires a residual income of 6%. Required: a) Determine the residual income before and after the additional investment. b) Will the company accept the proposed additional investment if the management is evaluated by residual income?

Saba Signs Co: Compute ROI scenarios

See attached file. Saba Signs Company has provided the following data: Required: a) Determine ROI before the additional investment. b) Determine ROI of the additional investment. c) Determine ROI after the additional investment. d) Will the manager accept the additional investment using ROI? Why or why not? e) If Sa

Atherton Company: Compute the four variances for variable

See attached file. Atherton Company uses a four-way analysis for overhead. The following information is available for August for overhead: The company closes all variances to cost of goods sold. Required: Compute the four variances for variable and fixed overhead and indicate if they are favorable or unfavorable.

Buy the plugs and rent the facility, or buy the plugs and not rent

Regis Company manufactures plugs used in its manufacturing cycle at a cost of $36 per unit that includes $8 of fixed overhead. Regis needs 30,000 of these plugs annually, and Orlan Company has offered to sell these units to Regis at $33 per unit. If Regis decides to purchase the plugs, $60,000 of the annual fixed overhead ap