Phantasy, Inc. is a research and development company that primarily develops and patents products. Phantasy, Inc. then licenses other companies to produce and sell the products. In return, Phantasy, Inc. receives royalties from these companies. In 2009, Phantasy, Inc. developed and patented a product and then licensed Thurbe
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Joe's Fly-By-Night Oil Company earned $200,000 last year before-taxes. a. Calculate how much Joe's owes in income taxes for the year (use the table on page 27 in your textbook). b. What was Joe's average tax rate? c. What was Joe's marginal tax rate?
Prepare a schedule of cash receipts for my business covering the fourth quarter (October through December). Timber's Lodge shop has forecast credit sales for the 4th quarter: September (actual sales)---- $50,000 Fourth quarter October $40,000 November $35,000 December $60,000 Experience has shown that 25
This question should be answered in at least 200 words. Give four examples of activities and related cost-allocation bases that can be used in an ABC system to allocate costs to products, services, or customers.
4-10 The operations manager of a musical instrument distributor feels that demand for bass drums may be related to the number of television appearances b y the popular rock group Green Shades during the preceding month. The manager has collected the data shown in the following table: (a) Graph these data to see whether a li
Assume Music Makers has begun to produce blank CDs for its use and for sale to outside customers, because the CDs are produced in a continuous process and are identical, management at Music Makers uses process costing. The unit of measure for Mucic Makers is a box of CDs. Management has gathered the following information from t
Aladdin Company manufactures a product that passes through two processes. The following information was available for the first department for January:
1. Beginning WIP (work in progress) consisted of 6,000 units 2.Ending WIP consisted of 4,400 units, 100% complete with respect to material cost and 25% complete with respect to conversion costs. 3. 10,000 units started into production in January. a. Prepare a physical flow schedule for the department. b. Calculate equivale
5. On June 30, 20X2, Pane Corporation exchanged 150,000 shares of its $20 par value common stock for all of Sky Corporation's common stock. At that date, the fair value of Pane's common stock issued was equal to the book value of Sky's net assets. Both corporations continued to operate as separate businesses, maintaining acco
You have been hired as a consultant to present a one-hour seminar before a group of investment and corporate professionals. The main part of your job is to explain how behavioral phenomena may help the attendees to become more effective decision makers. Furthermore, your presentation is even more focused; as your talk will b
What is the purpose of tax planning? How do we conduct tax planning? How could tax planning lead to unethical behavior?
What is tax research? What is the purpose of conducting tax research? Are results of tax research conclusive? Why or why not?
1. If you were to pick one company for Safeway 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. 3. What
1. Provide a brief description of Safeway, its main business and operational activities and a short synopsis of the main developments of Safeway over the past few years of Safeway. Include some financial information such as the stock price, its profitability, and other financial information you find relevant. 2. Explain why
10. (1) In 2009, Sage Company discovered that a building addition completed December 30, 2006, at a cost of $360,000 was charged to building and maintenance expense in error. The cost should have been charged to the buildings account. At December 31, 2009, the building addition had 22 years of life remaining and a $100,000 resid
6. Cutter Enterprises purchased equipment for $72,000 on January 1, 2009. The equipment is expected to have a five-year life and a residual value of $6,000. Using the double-declining balance method, depreciation for 2010 would be: A. $28,800. B. $18,240. C. $17,280. D. None of these is correct.
Your portfolio has three asset classes, U.S. government T-bills account for 45% of the portfolio, large-company stocks constitute another 40%, and small-company stocks make up the remaining 15%. If the expected returns are 3.8% for the T-bills, 12.4% for the large-company stocks, and 17.5% for the small-company stocks, what is t
An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 10% in the coming year. At the beginning of the year, the firm had a stock market value of $10 million. At the end of the year, it had a market value of $12 million even though it experienced a loss, or negative net income, o
P7-11 Common stock value-Constant growth Elk County Telephone has paid the dividends shown in the following table over the past 6 years. Year Dividend per share 2006 $2.87 2005 2.76 2004 2.60 2003 2.46 2002 2.37 2001 2.25 The firm's dividend per
The IRS is disputing a deduction reported on your 2005 tax return, which you filed on April 17, 2006. On April 2, 2009, the IRS audit agent asks you to waive the statute of limitations for the entire return so as to give her additional time to obtain a Technical Advice Memorandum. The agent proposes in return for the waiver a "c
Morris Jory, a long-time tax client of the firm you work for, has made substantial gifts during his lifetime. Mr. Jory transferred Jory Corporation stock to 14 donees in December 2005. Each donee received shares valued at $11,000. Two of the donees were Mr. Jory's adult children, Amanda and Peter. The remaining 12 donees were em
Give examples of the types of "qualitative and quantitative factors" that affect the business environment.
1. Examine at least four accounting regulatory bodies and discuss how an organization complies with the standards of the three regulatory bodies you selected. Be sure to cite two references. 2. Summarize in short sentence the primary purpose of an internal control system.
Q1. "The more the better!" Was a comment made by the CEO of a major company when asked about allocation of sales, general, and administrative costs to products. Do you agree? Explain. Q2. Suppose a company uses machine hours as a cost-allocation base for factory overhead. How does the company compute a budgeted overhead
2. Borke and Falvery is a law firm that uses activity-based costing. Classify these activities as value-added or nonvalue-added: 1. Taking appointments. 2. Meeting with Clients. 3. Court time. 4. Meeting with opposing attorneys. 5. Billing.
Slaubaugh Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash.................................................................... $ 100 $
You are considering investing in a portfolio of the common stocks of four publicly-traded companies with betas as follows: ABC - 0.7 DEF - 0.9 GHI - 1.3 JKL - 1.9 If the risk-free rate is 4.5% and the market rate is 8.5%, what is your expected rate of return of following stocks : a. ABC? b. DEF? c. GHI? d. JKL
10. Betsy McCall is the president of Brew News. She has no accounting background. McCall cannot understand why Current cost is not used as the basis for accounting measurement and reporting. Explain what basis is used and Why? 11. Describe the two constraints inherent in the presentation of accounting information. 12. In
On January 1, 2007, Tom Clark was promoted to the position of production manager in Seattle Seafood Company. The firm purchases raw fish, cooks and processes it, and then cans it in signal-portion containers. The canned fish is sold to several wholesalers specializing in providing food to school lunch programs in the Northwest r
____ 1. Period costs would include a. direct labor. b. direct materials. c. indirect manufacturing costs. d. selling and administrative costs. ____ 2. Manufacturing costs are typically classified as a. product costs or period costs. b. direct materials or direct labor. c. direct materials, direct labor, o
Since Boomer Company's inception, Madison Company has owned 18 percent of Boomer's outstanding common stock. Madison provides three key management personnel to Boomer and purchased 25 percent of Boomer's output during 20X7. Boomer is profitable. On January 2, 20X8, Madison purchased additional common stock to finance Boomer's ex