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    Standard versus budget, optimum levels, variances, WIP

    Question 1 Consider the following statements. Statement A: A standard is a unit amount. Statement B: A budget is a total amount. Option 1: Statement A is true and Statement B is false Option 2: Statement A is false and Statement B is true Option 3: Both Statements A and B are true Option 4: Both Statements A and B

    Partnership Liquidation - ABC Partnership

    Partnership Liquidation The balance sheet of the ABC partnership just prior to liquidation appears below: ABC PARTNERSHIP Balance Sheet December 31, 2010 Assets Liabilities and Owners' Equity Cash $ 70,000 Liabilities $120,000 Noncash assets 190,000 Agler, Capital 20,000 Bell, Capital 80,000 Colaw, Capital

    Accounting Problem: Don's aunt Natalie gave him a house

    Please help with the following problem. Provide step by step calculations. During the current year, Don's aunt Natalie gave him a house. At the time of the gift, the house had a FMV of $42,000 and his aunt's adjusted basis was $32,000. After deducting the annual exclusion, the amount of the gift was $30,000. His aunt paid

    Cash Basis Accounting Problem

    In December 200x, Max, a cash basis taxpayer, rents an apartment to Charlie. Max receives both the first and last months' rent totaling $1,000 plus a security deposit of $400. What is the amount of income reported as taxable in 200x?

    Jaime overhead allocation

    Please see attachment and show calculations. 7. Jaime Inc. manufactures 2 products, sweaters and jackets. The company has estimated its overhead in the order-processing department to be $180,000. 8. ABC Bread sells a box of bagels for with a contribution margin of 62.50%. Its fixed costs are $150,000 per year. How much

    I:12-26 Which exchanges qualify as like-kind exchanges

    Like-Kind Property. Which of the following exchanges qualify as like-kind exchanges under Sec. 1031? a. Acme Corporation stock held for investment purposes for Mesa Corporation stock also held for investment purposes b. A motel used in a trade or business for an apartment complex held for investment c. A pecan orchard in

    I:8-13 Passive activities rules for Laura's rentals; Kami's partnerships

    I:8-13 Which of the following activities are considered passive for the year? Explain. Consider each situation independently. a. Laura owns a rental unit that she rents out to students. The rental unit is Laura's only business and she spends approximately 875 hours per year managing, collecting the rent, advertising, and

    Spain Inn: method of financing to maximize EPS, stock issue or debt

    1. Spain Inn has a total value of $21 million. Its stock sells at $32 a share. At present, it has a loan of $5 million at 8% interest. It needs $3 million to renovate the building. It can get the financing by selling 100,000 shares of stock at $30 (net) per share, or by borrowing the money at 9% interest. The expected EBIT after

    Holding Period Return, After Tax HPR, Jensen Alpha, etc.

    Scenario: Mary and Nick Stalcheck have an investment portfolio containing 4 vehicles. The portfolio contains common stock, industrial bonds, mutual fund shares and options. They are interested in measuring the return on their investment and assessing how well they have done relative to the market. They hope that the return e

    What is the difference between buying and making?

    Ellen currently makes part y-7 which is used to make a lawnmower they manufacture and sell. Following are the costs to make the product. They use 10,000 parts a year. Direct Material $12 Direct Labor 18 Variable Overhead 6 Fixed Overhead is $80,000 Of the $80,000, $50,000 is avoidable

    Effect of large transaction; Compute Global's EBIT, income, P/E

    1. Suppose your firm receives a $5 million order on the last day of the year. The customer picks up the entire order the same day and pays $1 million in upfront in cash; you also issue a bill for the customer to pay the remaining balance of $4 million within 30 days. Suppose your firms tax rate is 0 (ignore taxes). Determine the

    Taxation: How many dependency exemptions may Tony claim in 200x

    Tony supports the following individuals during 200x: Miranda, his former mother-in-law who lives in her own home and has no gross income; his cousin, Jeff, age 23, who is a full-time student, earns $7,000 during the year, and lives with Tony all year long; and Matt, age 22, who is Tony's brother, is a full-time student who live

    Deep Discount Bonds - Husky Enterprises

    Husky Enterprises recently sold an issue of 10-year maturity bonds. The bonds were sold at a deep discount price of $615 each. After flotation costs, Husky received $604.50 each. The bonds have a $1,000 maturity value and pay $50 interest at the end of each year. Compute the after-tax cost of debt for these bonds if Huskys margi

    Compute Value of Equity, Net Income, Retained Earnings

    See the attached file. 2-1 Total Assets Use the following information, compute total assets. Equipment . . . . . . . . . . . . . . . $10,000 Accounts payable . . . . . . . . ....... 900 Capital stock . . . . . . . . . . . . .... 1,500 Cash . . . . . . . . . . . . . . . . . . ....... 800 Loan payable . . . . .

    Analyze Jill's investment in Aromatics bonds

    Jill invested 25,000 in the bonds of industrial Aromatics Inc. She held them for 13 months, at the end of which she sold them for 26, 746. During the period of ownership she received 2,000 in interest. Calculate the pretax and after tax HPR on Jill's investment. Assume that she is in the 31% ordinary tax bracket (federal and sta

    Describe products involved in all 3 sectors of the economy

    1- Describe a scenario for the production and consumption of a product that involves all three sectors of an economy. Explain what each sector contributes to the transactions and what each sector receives. Which sector benefits the most from the transactions involved and why? 2- Give an example of a real world market t

    Accounting: Plant assets, Depreciation, Prepaid insurance, interest on a note

    1. A main accounting issue for plant assets is: A) Computing the cost of the plant assets. B) Matching the costs of plant assets against revenues for the periods they benefit. C) Accounting for repairs and improvements to plant assets. D) The disposal of plant assets. E) All of the above. 2. Nelson Company purcha

    Questions Involving Sales and Production

    Sell or process further (adapted from CMA exam) The department of Biggs Company is considering a proposal to install a third production department within its exiting factory building. With the company's present production setup, 200.000 pounds per year of direct materials pass through Department 1 to Produce 100,000 pounds each

    Waldo and Company: Transfer pricing in a service business

    Waldo and Company, LLP, is a partnership that provides public accounting services. Waldo has three offices located in New Orleans, Baton Rouge, and Lafayette. Each of the offices employs approximately 30 professional accountants who are hired by and work solely for the office to which they are assigned. The offices are run indep

    Break even analysis : Academic response

    If a firm has a break even point of 20,000 units and the contribution margin on the firm's single product is $3.00 per unit and fixed costs are $60,000, what will be the firm's net income be at sales of 30,000 units.

    Determining Price per Share and Profit: Example Problem

    a. You overheard a dealer for Teldar Paper's stock saying that the bid and ask for Teldar were 23:19 AND 23:47, respectively. if you were looking to sell 100 shares of Teldar to the dealer, at what price per share could you sell them? b. If your friend Jimmy wants to buy 100 shares of Teldar from the dealer, at what price pe

    Michigan Mining and Manufacturing has a debt obligation

    Michigan Mining and Manufacturing has a debt obligation of $100 million and assets with a value of $90 million. This debt must be paid off very shortly. When this happens, the value of the debt will be $90 million and the value of equity will be $0. Prior to paying off the debt, MMM has an opportunity to make a high-risk investm

    Accounting for intangible assets

    Mia-Tora Company purchased a fast-food resturant for $1,400,000. the fair market values of the assets purchased were as follows. No liabilities were assumed. Equipment $320,000 Land $200,000 Building $ 650,000 Franchise (5-year life) $100,000 Required: Calculate the amount of goodwill purchased.

    Change in Accounting Principles and Financial Statements

    BE13- 1 On June 30 Rojas Corporation discontinued its operations in Mexico. On September 1 Rojas disposed of the Mexico facility at a pretax loss of $ 480,000. The applicable tax rate is 25%. Show the discontinued operations section of Rojas's income statement. BE13- 3 On January 1, 2007, Cannon Inc. changed from the LIFO met

    Price per Share of a No Growth Firm

    Company X is a no growth firm. It is expected to provide a constant earnings per share of $30. If all earnings are paid out as dividends and the required rate of return on equity is 15%, calculate the current price per share for the stock. a) $45 b) $100 c) $150 d) $200 e) Not enough information to answer the question f)