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How much cash will you need for a down payment in order to by the home?

You want to purchase a beach house for $220,000 funding as much of the cost as possible with a home mortgage loan. Banks are currently offering standard thirty year mortgages at 8% (monthly compounding). Unfortunately, you can only afford payments of $1.500.00 per month. How much cash will you need for a down payment in order

Public Accounting Profession - Negotiations

Like most young professionals, earning a reasonable livelihood ranked as a top priority for Scott Fane, a CPA specializing in taxation services who relocated to Florida in the mid-1980s. To practice as a CPA in Florida, Scott Fane registered with the Florida Board of Accountancy, which regulates the public accounting profession

Tax Problems for gain/loss calculations

30. Kareem bought a rental house in October 2001 for $250,000, of which $50,000 is allocated to the land and $200,000 to the building. Early in 2003, he had a tennis court built in the backyard at a cost of $5,000. Kareem has deducted $30,900 for depreciation on the house and $1,300 for depreciation on the court. In January 2006

Organizations Costs in Newatit Company

Newatit Company spent a substantial amount of money organizing and getting ready for business. These costs are considered organization costs. Required: a. Does the occurrence of organization costs meet the definition of assets? b. If organization costs are assets, would they be considered intangible assets? Explain. c

Tax Research and Planning

A. Explain the role of tax planning in the business environment. In writing this explanation, focus on the four maxims of tax planning (1. Tax costs decrease (and cash flows increase) when income is generated by an entity subject to a low tax rate. 2. In present value terms, tax costs decrease (and cash flows increase) when

Discussions and accounting problems

Identify at least one situation in which application of different accounting methods or accounting estimates results in difficulties in comparing companies? Can you bring in any examples from any workplace? 2-Please answer if you agree or disagree of this four points posted below, and discuss your point of view about it, and

Capitalization of Corporate Property

Roper Corporation purchased 100 storage boxes for the office. The boxes cost $15 each and should last ten years. Argue against the capitalization of the boxes. Your arguments should be grounded on the Conceptual Framework, emphasizing the objectives of financial reporting and the qualitative characteristics of accounting info

Net Income/Cash Flow - Best Manufacturing Company

1. The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. Cash flows are in $ thousands, and the corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur a

Time and Billing System - Grace Ho and Associates

1. How can an automated time and billing system help Grace Ho and Associates? 2. What technology is available to automatically capture a professional employee's time spent on a particular client engagement?

EPS - Price Company

On January 1 of the current year, Price Company had 66,000 shares of $38 par common stock issued and outstanding and 16,000 shares of noncumulative 5%, $150 par preferred stock issued and outstanding. On October 1, Price Company issued an additional 24,600 common shares and another 27,600 common shares on December 1. Net inc

Value Added Process

What are value-added processes? How do you determine if a process adds value? How does identification of value-added processes help a company run more efficiently and effectively?

Gross Profits - McNeil Construction Company

McNeil Construction Company is involved in a long-term construction contract to build an office building. The estimated cost is $30 million and the contract price is $38 million. Other information follows: Office Building Cash Collection

Importance of Manufacturing Overhead Allocation

Company A: direct materials 7% direct labor 13% manufacturing overhead 80% Company B Direct materials 21% direct labor 42% manufacturing overhead 37% Company C direct materials 42% direct labor 49% manufacturing overhead 9% Based on this information, which of the three companies would probably improve its produ

Tax Questions about Individual Tax Deductions

53) Chee, single, age 40, had the following income and expenses during the year (not a leap year): Income: Salary .................................................................... $43,000 Rental of vacation home (rented 60 days, used Personally 60 days, vacant 245 days)............................... $4,000

Accounting - Amerspec Enterprise Inc.

Amerspec Enterprise Inc. produces aeronautical navigation equipment. The stockholders' equity accounts of Amerspec Enterprises Inc., with balances on January 1, 2006, are as follows; Common Stock, $10 stated value (100,000 shares authorized, 60,000 shares issued) ...........................

Cost Accounting - Managerial Emphasis (Web Creations)

Web Creations, a Website design and maintenance company, uses job-costing system has a single direct-cost category (professional services) and a single indirect-cost pool (client support). Client support costs are allocated to individual jobs using actual professional service-hours. Budgeted and actual amounts for 2004 are as

Income tax rules regarding hobby losses

Please help with the following problem. Dr. Giles is a dentist who deducted losses for her horse breeding activity for 15 years. In 14 of the 15 years, she sustained a loss for tax reporting purposes. As a result of an audit, she took the IRS to task in Tax Court in 2006. She lost her case because she did not satisfactori

Accounting Problems: Assumptions and Definitions

1- If the going concern assumption is not made in accounting, discuss the differences in the amounts shown in the financial statements for the following items. a- land b- Unamortized bond premium c- Depreciation expense on equipment d- Merchandise inventory e- Prepaid Insurance 2-What accounting assumption principle o

Merchandising Transactions

Problem 1 If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing: A. A debit memorandum B. A credit memorandum C. An invoice D. A bill Problem 2 If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30, and the seller prepays

Calculating best case forecast from income statement

I need some help figuring out how to do these calculations. I attached the balance sheet and growth assumptions as well as a spreadsheet. Laredo Railroad Financial Data Laredo Balance Sheet (amounts in thousands, except per share amounts) as of December 31 1998 1999 ASSETS Current assets Cash and cash

Accounting adjustment and change in estimate

Choose from the following list the term which best describes the presentation of the item on the financial statements of Gordon Corporation for 2008. C: Change in estimate P: Prior period adjustment (not due to change in principle) R: Retrospective type accounting change with note disclosure N: None of the above 1. In

Gain / Loss on Assets

Green Industries (a sole proprietorship) sold three SS1231 assets during 2005. Data on these property dispositions are as follows: Asset Cost Acquired Depreciation Sold for Sold on Rack $100,000 10/10/01 $60,000 $135,000 10/10/05 Forklift $35,000 10/16/02 $23,000 $

Accounting for Income Taxes

Accounting for Income Taxes a. Roberts Corp. reports pretax accounting income of $200,000, but due to a single temporary difference, taxable income is only $150,000. At the beginning of the year, no temporary differences existed. Roberts is subject to a tax rate of 40%. Required: Prepare the compound journal entry to reco

Accounting for Pensions

A. Pension data for Sam Adams Inc. include the following for the 2005 calendar year: Discount rate, 9% Expected return on plan assets, 9% Actual return on plan assets, 8% Service cost $400,000 January 1: PBO 3,000,000 ABO 2,000,000 Plan assets 3,200,000 Amortization of prior service cost 30,000 Amortization of net

Accounting changes and error corrections: - Journal Entries

Accounting changes and error corrections: a. Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2006. Inventory values at the end of each year since the inception of the company are as follows: FIFO LIFO 2004 $200,000 $180,000 2005 400,000 360,000 Requi

Earnings per Share

On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2006, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on

Bond Rates and Proxy/Takeover Questions

1. You are given the following data; k* = real risk-free rate = 4.0% Constant inflation premium = 7.0% Maturity risk premium = 1.0% Default risk premiums for AAA bonds = 3.0% Liquidity premium for long-term = 2.0% Assume that a highly liquid market does NOT exist for long-term US Treasury bonds, and the expected

Tax deductions: away from home expenses

21. Mr. and Mrs. South's adjusted gross income was $85,000. During the year they incurred and paid the following: Publications (unreimbursed and related to employment) - $500 Tax return preparation fee - 1,000 Professional dues - 1,200 Fees for will preparation (no tax advice) - 800 Life insurance premiums - 1,400 Assu