ComputerTown's Chief Financial Officer (CFO) was asked to become a member of the board for a local non-profit hospital. Should she expect the mission, goals, and performance measures of the hospital to be like those of ComputerTown? Why or why not?
Heal, Inc., a tax-exempt hospital, was sold to its shareholders for $6.6 million. The IRS determined that the fair market value of the hospital was $7.8 million. An IRS agent is proposing that the tax-exempt status of the hospital be revoked because the sale of the hospital to the shareholders for less than the fair market value
When Yuji dies in March 2009, his gross estate is valued at $6 million. He owes debts totaling $300,000. Funeral and administration expenses are $12,000 and $120,000, respectively. The marginal estate tax rate will exceed his estate's marginal income tax rate. Yuji wills his church $300,000 and his spouse $1.1 million. What
What you might do in the following scenario. You have been offered a job in the suburbs on the side of town you live on. It is for more money than you are making and will be 9-5, five days a week instead of overtime at your current job. The company is small and privately held. The company you work for now is a large establis
Please help me in completing the following take-home problem Introduction: Lisa is single has a dependent child, Ava, who lives with her. After her divorce, Lisa, was awarded the permanent custody of Ava, and has not agreed to waive her right to claim Ava as a dependent. Task: Compute Lisa's taxable income and her net tax
Calculate earnings per share for the following: Net income $ 500,000 Interest expense $ 50,000 Preferred Dividends paid $ 75,000 Common Dividends paid $ 100,000 Preferred shares outstanding $ 50,000 Common shares outstanding $ 100,000 Please explain
Tracy acquires an automobile (MARCS 5 year recovery) on March 1, 2009. He uses the automobile 70% of the time in his business and 30% of the time for personal use. The automobile costs $36,000, and no amounts are expensed under Sec. 179 or bonus depreciation. a. What is depreciation for 2009-2011 and any subsequent years?
Describe how to calculate. A company has 10%, 20-year bonds outstanding with a par value of $500,000. The company calls the bonds at 96 when the unamortized discount is $24,500. Calculate the gain or loss on the retirement of these bonds.
98% of larger corporations use the big four public accounting firms to audit their books. What are the reasons that you can think of on why this number is so high. What are the advantages and disadvantages of using one of the big four accounting firms?
Cerritos Circuitry manufactures electrical instruments for a variety of purposes. The following costs related to maintaining product quality were incurred in May. Training of quality-control inspectors $31,500 Tests of instruments before sale
For the following income statement and balance sheet, fill in the missing information for the calendar year ending December 31. Sales ($) __________ COGS 200,000 Gross Profit __________ Expenses 300,000 EBIT __________ Interest Expense 1
"I don't need to know accounting principles because my business is a sole proprietorship." Comment on this statement.
What are the essential features of the allowance method of accounting for bad debts?
ABD Co. began operating on January 1st, 2006. on December 31st, 2006 the company records showed the following account balance : The following transactions occurred during 2006 : 1-Â Â Collected $7,000 from Accounts Receivable. 2-Â Â Purchased supplies of $5,000 in cash. 3-Â Â Purchased equipment for $5,000 with
Select a step of the accounting that is not automated at AT&T then. A) How would you integrate this part of the accounting cycle into AT&T, wide accounting information system, identified some of the internal controls associated with the portion of the accounting cycle. B) Describe why these controls are important.
Discuss how income is recognized when accounting for long-term contracts? What are some alternatives to recognizing revenue? How are losses accounted for?
The stockholders' equity section of a corporation's balance sheet which is attached follows. 1. Assuming that the preferred stock is not callable and no dividends are in arrears, compute the book values per preferred share and per common share. Book value per preferred share _________________ Book value per common share
Record the following transactions of a company in general journal form. (a) Reacquired 8,000 of its own $10 par value common stock at $40 cash per share. The stock was originally issued at $15 per share. (b) Sold 2,000 shares of stock reacquired under part (a) at $43 cash per share. (c) Sold 3,000 shares of the stock re
Five years ago, Brian and his brother Boyd formed Stewart Corp., a golf apparel manufacturing corporation. At that time, Brian contributed $300,000 to the corporation in exchange for 50% of its stock. During the current year, Brian needed some cash to purchase a golf course so he sold a third of his interest in Stewart Corp. for
Doug receives a duplex as a gift from his uncle. The uncle's basis for the duplex and land is $90,000. At the time of the gift, the land and building have FMVs of $40,000 and $80,000, respectively. No gift tax is paid by Doug's uncle at the time of the gift. To determine gain, what is Doug's basis for the land? To determine
The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line has been developed. Because of the
Using the Internet, research Microsoft in the software industry and AT&T in the telecommunications industry to compare and contrast their performance over the last five years. Compare the two companies with special reference to the economic and environmental factors affecting their business during this time. Examine how the f
What is EOQ is, where did it come from, and what all the numbers mean. How to determine what goes into Order Cost. How to determine what goes into Carrying Cost. What can go wrong in calculating EOQ.
Please see attached, Need help filling in the missing cell values with formulas & explanations as to how to arrive at the calculations, submit conclusions back within this xls file. • Metals Division, total contribution margin:$28,800,000 • Outlay cost: $156 XXXX has several divisions. However, only two divisions
With modern technology the IRS is now able to easily and conveniently determine much of our financial data from third party sources. In terms of income, what income does the IRS track for individuals? And, how does the IRS track how much money you made last year?
Need help on if I was hired as the CFO of a new company and are determining the company's accounting needs. Explain to your staff at least 2 ways in which accounting data are used to make business decisions. Explain at least 3 related accounting terms or theories.
We are currently studying for our future managerial accounting exam, I am doing a pre-test and for accuracy I would like to know the answers to the specific problems attached. 1. Stoneberger Corporation produces a single product and has the following cost structure: The unit product cost under variable costing is:
1. Why can the unified transfer tax be categorized as an excise tax? In this regard, how does it differ from an income tax? 2. 10.3 As to the alternate valuation date of §2032, comment on the following. a. The justification for the election. b. A Form 706 need not be filed for the estate. c. The main heir prefers the date
O'Henry's Data Services Unadjusted Trial Balance November 30, 20XX Cash.................................... $9,700 Accounts receivable........................... 7,900 Prepaid expenses............ 2,600 Furniture, fixtures, & equipment 151,300 Accumulated depreciation $15,600 Accounts payable............
The 2007 balance sheet for American Pulp and Paper is shown below (in millions of dollars): Cash $3.0 Accounts Receivable 3.0 Inventory 5.0 Current Assets $11.0 Fixed Assets $3.0 Total Assets $14.0 Accounts Payable $2.0 Notes Payable 1.5 Current Liabilities $3.5 Long term Debt $3.0 Common Equity 7.5 Total Liabi