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Accounting

Blithe Company purchased 60% of Spirit Company

Blithe Company purchased 60 percent of Spirit Company's stock for $100,000 on January 1, 2006 when Spirit reported $120,000 of common stock outstanding and retained earnings of $25,000. On December 31, 2008, Blithe reported its investment in Spirit at $126,100 using equity-method accounting for its investment. Blithe received di

Comprehensive problem: single cycle

The following transactions pertain to Jones Corporation for 2009. Jan 1. Began operations when the business acquired $50,000 cash from the issue of common stock. Mar. 1 Paid rent for office space for two years, $18,000 cash. Apr. 1 Borrowed $40,000 cash from First National Bank. The note issued had an 8 percent annual

How S Corporations Treat Hobby Losses

How does one include a hobby into a S Corporation? And if one shareholder were to include a hobby, I would also assume that all shareholders would have to follow suit for consistency. Intuitively it makes sense that adding a hobby would create a red-flag, but under what context does the red-flag arise?

Diehl Company: Make or Buy a Component

Please see attached file. For many years, Diehl Company has produced a small electrical part that it uses in the production of its standard line of diesel tractors. The company's unit product cost for the part, based on a production level of 60,000 parts per year, is as follows: Per Part Total Direct materials $ 4.00

Solex Company: Sell or Process Further

Please see attached file. Solex Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $100,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales

Rice Co - 2 MC

O7). Use the following information for questions I and II below. Rice Co. purchased machinery that cost $810,000 on January 4, 2006. The entire cost was recorded as an expense. The machinery has a nine-year life and a $54,000 residual value. The error was discovered on December 20, 2008. Ignore income tax considerations. I

Section 183 Hobby losses: more than one business activity

I'm curious as to what happens if an individual has two or more hobby-activities that an individual treats as a business. If two or more activities were to incur losses for a year or more, and for the sake of argument-- simultaneously (as even hobby activities may be affected by recessionary downturns); do such losses from two o

Tax issue identification questions: Explain the issue involved in each scenario

TAX "ISSUE" IDENTIFICATION QUESTIONS (Try to answer two questions from each chapter). No solutions, please. Just answer without having to actually solve a problem. C9-19 Bob and Kate form the BK Partnership, a general partnership, as equal partners. Bob contributes an office building with a $130,000 FMV and a $95,000 adjust

Null and Alternate Hypotheses Analysis

Suppose that wish to test Ho: µ=10 versus Ha: µ>10 at the ∝ = 0.05 significance level. Furthermore, suppose that we observe values of the sample mean and sample standard deviation when n = 40 that do not lead to the rejection of Ho. Is it true that we might reject Ho if we observe the same values of the sample mean and

Emotional Intelligence and QEMS

As our world constantly experiences change, our communication-related theories continue to evolve to meet our new realities. Visit the Emotional Intelligence and QEMS Web sites to explore the current theories of emotional intelligence and quantum energy management. 1. Discuss the validity and possible applications of these tw

Calculate the Partnership Capital Gain Allocated to Gregory

At December 31, 2005, Lincoln and Ebert were equal partners in a partnership with net assets having a tax basis and fair market value of $150,000. On January 1, 2006, Gregory contributed securities with a fair market value of $75,000 (purchased in 2003 at a cost of $51,000) to become an equal partner in the new firm of Lincoln,

Amy's Adjusted Basis in Giant Partnership; recognition of gain

Amy acquired a 50% interest in the Giant Partnership by contributing property with an adjusted basis of $100,000. Amy would recognize a gain if I. The fair market value of the contributed property exceeds its adjusted basis. II. The property is encumbered by a mortgage with a balance of $50,000. Choices - I only, II only,

Tax benefits of NOLs: carryforward or carryback

1. How are the tax benefits of net operating losses (NOL) disclosed on financial statements? Which is more beneficial to an organization, an NOL carryforward or an NOL carryback? Why? When would a company decide to forego a carryback? 2. Read an article about taxable and finanical income, or deferred tax assets and liabili

ACC300: using the accounting formula in analyzing transactions

Part I Fill in the blanks: Question 1 to 8: In the space provided, classify each as it would be reported on a balance sheet. Use the following code: A -----Asset L -----Liability SE ------ stockholders' equity _____1. Accounts Payable _____2. Accounts Receivable _____3. Buildings _____4. Cash _

Describe accounting problems with recommendations for NASA

See attached article for reference. According to NASA's former auditor, PriceWaterhouseCoopers (PWC), NASA's finances are a mess, with major errors in its last financial statements and insufficient documentation. NASA's chief of internal financial management has maintained that the problems resulted from a difficult transitio

Statistics of Attitudes of Gun Control

If one study claimed 7 out of 8 people (88%) surveyed stated they were against gun control and another study claimed 800 out of 1600 people (50%) were against gun control, which result would you feel is more accurate in the sense of describing the attitudes of the general population? Explain.

Operating Segments of an Enterprise

Explain operating segments of an enterprise. How does SFAS No. 131 define an operating segment? What thresholds must be met for an operating segment to be a reportable segment?

What are the purposes of accounting codes? How are they used?

What are the purposes of accounting codes? How are they used? Provide an example. What type of source documents does the business you work for use for AIS? Are the documents paper-based, electronic, or other? Why does the business use those specific documents? Please give example and reference.

Tax Problem: Barney and Jones loss for 2008

The partnership of Barney and Jones realized an ordinary loss of $42,000 in 2008. Both the partnership and the two partners are on a calendar-year basis. The partners materially participate in the partnership's activities and share profits and losses equally. At December 31, 2008, Barney had an adjusted basis of $18,000 for his

Budget and overhead questions

I'm having a bit of trouble understanding these questions, please help. 1. Which of the following is not a method that can reasonably be used to forecast sales? 1. trends in the company's sales data 2. mathematical models adjusted by an experienced manager using professional judgment 3. flexible budgets

Cash Receipts for Chesterfield Company

I'm trying to complete these questions from my homework and I am having a very difficult time, please help. 1. The Chesterfield Company uses standard costing. Overhead is applied at $12 per machine hour. Data for the month of March follows:? Actual overhead costs $ 97,000 ? Standard machine hours allowed for actual production

Accounting

Need help with this Problem P4-2A . from chp 4 I need to do question a from that

Accounting for and presentation of owners' equity

E8.4 Calculate retained earnings from the following data, calculate the retained earnings balance as of 12/31/2008 Retained earnings, 12/31/2009.........................................$490400 Net decrease in total assets during 2009............................$74800 Net increase in accounts receivable in 2009.............

Calculate Faster's book value and purchase price

Details: Because Leeds Corporation has decided to purchase Emily and Richard's 80% ownership of Faster Distribution Company for $90,000 in excess of book value, complete the following tasks: Calculate Faster's book value and purchase price. Use the journal entries to record the purchase of Faster at date of acquisition and

Depreciation Deductions: Gross Profit Under Percentage

In 2007, Tiger Corporation, a calendar-year taxpayer, purchases and places into service machinery with a 7-year life that cost $268,000. The mid-quarter convention does not apply. Tiger elects to depreciate the maximum under Sec. 179. Tiger's taxable income for the year before the Sec. 179 deduction is $150,000. What is Tiger's