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    State Tax Refunds and Separate Returns

    When is a state tax refund includable in income? Are married taxpayers filing separate returns eligible to use standard deductions or itemized deductions? Why?

    Multiple Choice Question: Witten Co. preferred entry to record purchase of bonds

    Multiple Choice 35. On August 1, 2007, Witten Co. acquired 200, $1,000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2007, and mature on April 30, 2013, with interest paid each October 31 and April 30. The bonds will be added to Witten's available-for-sale portfolio. The preferred entry to record the purch

    Bonds: calculate issue price and amortize premium

    Question: On January 1, 2009, Company A issued $60 million face amount of 20-year, 14% stated rate bonds when market interest rates were 16%. The bonds pay interest semiannually each June 30 and Dec 31 and mature on Dec 31, 2028. Using the present value table, calculate the proceeds of Company A's bonds on Jan.1, 2009, assumi

    Free Cash Flow (Practice Question, ABC Corp.)

    FREE CASH FLOW Estimate the free cash flow that ABC Corp earned in 2008 using the Income Statement and supplemental information below; show your calculations: Income Statement Sales 100 Cost of Sales (40) Gross Margin 60 Expenses

    Trial Balance and Income Statements

    John Smith starts a sole proprietorship, Johnny's Store, on December 1, 2008. He plans to reinvest all profits in the business for the first several years. I. Using Excel, record the following transactions in debit/credit form. 1. Smith opens a bank account in the name of Johnny's Store with his personal check for

    Study Guide 3

    Please help me with these so I can make sure to study the right info. 1. Rensing Company's December 31 year-end financial statements contained the following errors: Dec. 31, 2007 Dec. 31, 2008 Ending inventory $7,500 understated $11,000 overstated Depreciation expense $2,000 understated An insuran

    Comprehensive cycle problem: Perpetual System

    At the beginning of 2006, D & L Enterprises had the following balances in its accounts: Cash ---> $8,400 Inventory 2,000 Common Stock 8,000 Retained Earnings 2,400 During 2006, D & L Enterprises experienced the following events: 1. Purchased inventory costing $5,600 on account from Smoot Company under terms 2/10, n/

    Methods of Accounting for Long-Term Investments

    Teague Corporation has the following long-term investments: 1. 60 percent of the common stock of Sriel corporation 2. 13 percent of the common stock of Copper Inc. 3. 50 percent of the nonvoting preferred stock of Staffordshire Corporation 4. 100 percent of the common stock of its financing subsidiary, EQ Inc. 5.

    Fica Taxes

    Is there some threshold for FICA calculations? Joe is president and 75 percent owner of JS Corporation. He takes a salary of $825,000 this year. Presidents of comparable companies are generally paid no more than $500,000. What are the income and FICA tax consequences if $325,000 is determined to be excessive wages by the IRS?

    Cash from Operating Activities: Indirect Method

    E5. The condensed single-step income statement for the year ended December 31, 20x9, of Sunderland Chemical Company, a distributor of farm fertilizers and herbicides appears as follows: Sales $13,000,000 Less; Cost of Goods Sold $7,600,000 Operating expenses (including depreciation

    Calculate Residual Income for Midlands Design Ltd.

    Residual Income [LO3] Midlands Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of £400,000 on sales of £2,000,000. The company's average operating assets for the year were £2,200,000 and its minimum required r

    Assets

    21 Which of the following is most directly related to value creation? a. sales b. Cash inflow c. Market share d. Net income 22 The primary market is defined a a. The market for insured securities b. The market for new issues c. The market for securities of the primary firms in the economy (generally the largest f

    Predetermined Overhead Rate; Overhead Variances

    I am studying for my final coming up and my professor gave the class a bunch of practice tests and quizzes for review. I need to compare my answers to that of a professional so I can hopefully pass my final exam. Thank you. Please see attached. I need to know what goes in the boxes.

    Variable Overhead Performance Report

    I am studying for my final coming up and my professor gave the class a bunch of practice tests and quizzes for review. I need to compare my answers to that of a professional so I can hopefully pass my final exam. Thank you. Please see attached. I need to know what goes in the boxes.

    Multiple choice Questions

    1. Fast Delivery Company delivers packages and business documents for local businesses located in the Houston metropolitan area. If the company decided to adopt an ABC costing system to accumulate costs for its service, what would be an appropriate cost driver to use for the cost of the original pick-up order? a. Number of mil

    Fixed Overhead Variances

    I am studying for my final coming up and my professor gave the class a bunch of practice tests and quizzes for review. I need to compare my answers to that of a professional so I can hopefully pass my final exam. Thank you. Please see attached. I need to know what goes in the boxes.

    Applying Overhead in a Standard Costing System

    I am studying for my final coming up and my professor gave the class a bunch of practice tests and quizzes for review. I need to compare my answers to that of a professional so I can hopefully pass my final exam. Thank you. Please see attached. I need to know what goes in the boxes.

    Variable Overhead Performance Report with Just a Spending Variance

    Variable Overhead Performance Report with Just a Spending Variance [LO3] Jessel Corporation bases its variable overhead performance report on the actual direct labor-hours of the period. Data concerning the most recent year that ended on December 31 are as follows: Budgeted direct labor-hours 42,000 Actual direct l

    Minimum Transfer Price

    A company established a branch to sell automobile seat covers. The company purchases these covers and stores them in a warehouse. The covers are then shipped from the warehouse to both the home office and the new branch FOB destination. Home office management is responsible for setting the transfer price of the covers charged to

    Budgeted Rate L & L, CPAs

    L & L, CPAs, employs two full-time professional CPAs and five other accountants. Budgeted direct salary costs include $150,000 for each CPA and $40,000 per other accountant. For 2007 year, indirect costs were budgeted at $200,000, but actually amounted to $225,000. Actual salaries were $155,000 for each CPA and $45,000 for each

    Overhead overapplied or underapplied.

    If estimated annual factory overhead is $480,000, estimated annual direct labor hours are 200,000, actual March factory overhead is $41,000, and actual March direct labor hours are 17,000, then overhead is: $800 overapplied. $200 overapplied. $800 underapplied. $200 underapplied. $1,000 underappli

    Materials Efficiency Variance

    A materials efficiency variance can be caused by all of the following except what: Quantity of actual output achieved. Performance of the workers in using the materials. Quality of the materials. Skill level of the workers using the materials. All of the factors listed above.

    Rubbermaid Design of Goods and Services: Success with wide variety of products

    Rubbermaid's record of new product innovation is remarkable. With almost 5,000 products, the firm continues to crank out a new one almost everyday - and with great success. It looks like traditional wisdom teaches us that a company may win market share by offering a wide variety of products, increasing the chance of appealing to

    Business Combinations and Bonds

    The problem is circled in green in the attachment. My problems are with the first journal entry and with calculating the Goodwill. I know the first entry to record aquisition is a debit to Investment in Net Assets of Cooper Co. account. I know that it is calculated like this (($1,000,000 * 0.258419) + ($50,000 * 10.594014))

    Intangible Assets: Appraisal on purchase, abuse, and stuffing

    Intangible assets are typically amortized over a 15 year period compared to 5- and 7- year assets. Can anyone see how a taxpayer might want assets appraised upon purchase? Any potential for abuse? When does "stuffing" become evasion as opposed to avoidance?

    Compute Southern Machines total assets & sales growth without additional funds

    2) Southern Machines has a net income this year of $500 on sales of $2,000 and is operating its fixed assets at full capacity. Management expects sales to increase by 25 percent next year and is forecasting a dividend payout ratio of 30 percent. The profit margin is not expected to change. If spontaneous liabilities are $500 thi

    Variable Production and Contribution Margin

    9. Top Hat Sports manufactures baseball caps. The following information is available for 2008, the company's first year in business when it produced 150,000 caps. Revenue of 240,000 was generated by sale of 90,000 caps. Production Variable Fixed Direct materi

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