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Basis and holding period for land acquired by Jessica

Jessica inherits land from her uncle. His adjusted basis in the land (purchased in 1997) was $60,000 and it was included in his estate at a value of $150,000. a. Determine Jessica's basis and holding period for the land. b. Determine Jessica's basis and holding period for the land if it was included in her uncle's estate a

Recognized gain and basis for land exchanged by Eunice Jean

Eunice Jean exchanges land held for investment located in Rolla, Missouri, for land to be held for investment located near Madrid, Spain. Her basis for the land given up is $250,000 and the fair market value of the land received is $350,000. Eunice Jean also receives cash of $15,000. a. What is Eunice Jean's recognized gain?

Basis in the land to Cheryl after death of Ed

Ed and Cheryl have been married for 27 years. They own land jointly with a basis of $140,000. Ed dies in 2008, when the fair market value of the land is $220,000. Under the joint ownership arrangement, the land passed to Cheryl. a. If Ed and Cheryl reside in a community property state, what is Cheryl's basis in the land? b

Basis for land; recognized gain or loss in gift transaction

Mel gives a parcel of land to his son, Scott. He had purchased the land in 1996 for $140,000 and its fair market value on the date of the gift is $125,000. No gift tax is paid. Scott subsequently sells the land for $131,000. a. What is Scott's basis for the land? b. What is Scott's realized and recognized gain or loss from

Principles of accounting

45. Prepare a flexible budget for 8,000, 9,000, and 10,000 units of output, given the following data: Variable costs: Budgeted fixed overhead $90,000 Direct materials $5 Direct labor 4 Overhead 8 Ans: Flexible Budget Variable Cost Units Produced Category per Unit Variable costs:

Principles of Accounting and Types of Cost

Please see the attached file. 40. The graph below depicts two different types of costs. Questions related to the graph should be answered in the spaces provided. a. The line H-B represents what type of cost? Variable cost b. Production at point J versus point L would increase total variable costs. Variable costs wil

Tax Effects of sale of Hsui's process to preserve fresh fruit.

Hsui, who is single, is the owner of a sole proprietorship. Two years ago, Hsui developed a process for preserving fresh fruit that gives the fruit a much longer shelf life. The process is not patented or copyrighted, but only Hsui knows how it works. Hsui has been approached by a company that would like to buy the process.

Adjusted gross income

Phil and Susan are married, filing a joint return. The couple has two dependent children. Susan has wages of $34,000 in 2008. Phil does not work due to a disability, but he is a buyer and seller of stocks on the Internet. He generally buys and holds for long-term gain, but occasionally gets in and out of a stock quickly. Th

Calculate the realized gain on the sale of Anne's home

Anne sold her home for $260,000 in 2008. Selling expenses were $15K. She had purchased it in 2001 for $190K. During the period of ownership, Anne had done the following: Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. Deducted a casualty loss for residential trees destroyed by a hurrica

Fundamental Accounting Principles

Fundamental Accounting Principles Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used? Answer FIFO and LIFO. LIFO and weighted-average cost. specific identification

Market vs Book Value

The Newburg Flyers operate a major sports franchise from a bldg in downtown Newburg. Built in 1940 at a cost of $5,000,000 and is fully depreciated, so that it shows a value of $1 on the balance sheet. the land the bldg is on was purchased in 1935 for $10,000 and is valued at this amount for bal sheet purposes. The franchise

Yount and Lance Division of Partnership Income

Please see the attachment. Division of Partnership Income Yount and Lance have a partnership agreement which includes the following provisions regarding sharing net income and net loss: 1. Since Yount will work only part time in the partnership, he will be allocated a salary allowance that is one half the salary allowance


Selected financial data of ABCand XYZfor 2005 are presented here (in millions). ABC XYZ Corporation Stores, Inc. Income Statement Data for Year Net sales $45,845 $287,042 Cost of goods sold 31,561 221,290 Selling and administrative expenses 10,480 51,354 Interest expense 570 986 Other inc

Weighted Average Common Shares and Time Interest Earned

The income statement for Christensen, Inc., appears below. CHRISTENSEN, INC. Income Statement For the Year Ended December 31, 2008 Sales $425,000 Cost of goods sold 243,000 Gross profit 182,000 Expenses (including $18,000 interest and $14,600 income taxes) 107,300 Net income $74,700 Additional informati

Horizontal/Vertical AnalysisAccounting

The comparative condensed income statements of Hendi Corporation are shown below. HENDI CORPORATION Comparative Condensed Income Statements For the Years Ended December 31 2009 2008 Net sales $604,400 $506,400 Cost of goods sold 487,800 426,400 Gross profit 116,600 80,000 Operating

Reporting gross income from a free pumpkin

Two days before Halloween, Gene was driving in his car and noticed that he was low on fuel. He stopped at a gas station which offered a free pumpkin with the purchase of a full tank of gas. The pumpkin has a fair market value of $2.00, and the price of the gasoline was the same as at another station located across the street.

Transactional Analysis for Cooper, Inc

Cooper, Inc., experienced the following events during 2004. 1. Acquired $55,000 cash from the issue of common stock. 2. Paid $15,000 cash to purchase land. 3. Borrowed $5,000 cash from First Bank. 4. Provided services for $21,000 cash. 5. Paid $1,500 cash for utilities expense. 6. Paid $11,000 cash for other operating expe


1. If you were to pick one company for your SLP company to merge with, what would it be? Explain your choice with respect to possible benefits of this merger and why you would choose this company over any other choice for a potential. 2. How would you finance a takeover of this chosen corporation? Explain your reasoning.

Calculate Operating Income After Tax

Question 1 From the following income statement (in millions), calculate operating income after tax using both the top-down and bottom-up methods. Use a tax rate of 37 percent. Revenue $ 6,450 Cost of goods sold (3,870) Operating expenses (1,843) Interest expense (135) Income taxes (181) Net

Allocating Service Department Costs

Allocating Service Department Costs Armstrong Industries produces electronic equipment for the marine industry. Armstrong has two service departments (maintenance and computing) and two production departments (assembly and testing). Maintenance costs are allocated on the basis of square footage occupied, and computing costs ar

Divine Cheesecake Shoppe: overhead rate, total unit cost

Activity-Based Costing The Divine Cheesecake Shoppe is a national bakery that is known for its strawberry cheesecake. They also make 12 different kinds of cheesecake as well as several other types of bakery items. They have recently adopted an activity-based costing system to assign manufacturing overhead to products. The fo

Business Combination

Which one of the following is a characteristic of a business combination that should be accounted for as an acquisition? The combination must involve the exchange of equity securities only. The transaction establishes an acquisition fair value basis for the company being acquired. The two companies may be about the same siz

Initial Value of Investment in Subsidiary Account

The fair value of Carnes' Land and Buildings are $650,000 and $550,000, respectively. On May 1, 2000, Riley Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Carnes' common stock. On May 1, 2000, what value is assigned to the investment account?

Determining the Amount of Consideration Transferred

Hoyt Corporation agreed to the following terms in order to acquire the net assets of Brown Company on January 1, 2009: (1.) To issue 400 shares of common stock ($10 par) with a fair value of $45 per share. (2.) To assume Brown's liabilities which have a fair value of $1,500. On the date of acquisition, the consideration trans

Calculating Material and Labor Variances

Calculating Material and Labor Variances Star Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat is as follows: Materials (0.70 yards × $10.00) $7.00 Direct labor (0.80 hours × $12.50) $10.0 During May, the company produced 3,000 band hats; 3,50

Salary and Moving Expenses Incurred to Change Jobs

Kristen had the followig transactions for 2008: Salary, moving expenses incurred to change jobs, inheritiance received from deceased uncle, life insurance proceeds from policy on uncle's life (Kristen was named the beneficiary), cash prize from church raffle, payment of state income tax. What is Kristen's AGI for 2008?

Calculate the credit for child and dependent care expenses

Dabney and Nancy are married, both gainfully employed, and have two children who are 3 and 6 years old. Dabney's salary is $35,000 while Nancy's salary is $40,000. During the year, they spend $7,000 for child care expenses that are required so both of them can work outside of the home. Calculate the credit for child and d