On June 3 of the current year, Eric, Florence, and George form Wildcat Corporation and transfer the following items: Eric Land $200,000 $50,000 500 Florence Equipment -0- 25,000 250 George Legal services -0- 25,000 250 Eric purchased the land (a capital asset) five years ago for $200,000. Florence purchased the equipment
There is a significant amount of gray area when interpreting tax regulations. There are several resources available to assist tax preparers in addressing these issues, such as the AICPA's "Statements on Standards for Tax Services." You are asked by a new client to include an unsubstantiated amount as a deduction that will mak
Use the search term "break-even analysis" and find an article or case study and summarize.
Formulate a strategy to improve the opportunities for Durango to reach its revenue goals (i.e., increase revenue by 10% within five [5] years).
In comparing services that auditors provide, you will notice a variety of both services and topics they cover. The last slide above in the Audit PowerPoint gives factors that contribute to fraud in companies. Notice that since the Sarbanes-Oxley Act in 2001, fraud from lack of internal controls has decreased dramatically. How
ABE19-1 In 2012, Amirante Corporation had pretax financial income of $240,200 and taxable income of $191,600. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2012. $____
How are product costs different from period costs? What are examples of each? What makes product costing easy or difficult? Why? Include scholarly references and practical implications.
AE17-11 Journal entries for equity securities for Capriati Corp in 2012, their first year of business, including unrealized gains or losses in 2012: 2012: Jan 15: Purchased 13,500 shares of Gonzalez Company's stock at $50.25 per share and commission of $2,970. Apr 1: Purchased 7,500 shares of Belmont Co.'s stock at $78.00
AE17-16 (Fair Value and Equity Method Compared) Â Gregory Inc. acquired 20% of the outstanding common stock of Handerson Inc. on December 31, 2012. The purchase price was $1,260,000 for 50,000 shares. Handerson Inc. declared and paid an $0.88 per share cash dividend on June 30 and on December 31, 2013. Handerson reported net
AE17-13 (Equity Method) Â Gator Co. invested $1,120,000 in Demo Co. for 25% of its outstanding stock. Demo Co. pays out 40% of net income in dividends each year. Â Use the information in the following T-account for the investment in Demo to answer the following questions. Â Investment in Demo Co. Â 1,120,000
AE17-22 (Call Option) On January 2, 2012, Jones Company purchases a call option for $420 on Merchant common stock. The call option gives Jones the option to buy 1,000 shares of Merchant at a strike price of $50 per share. The market price of a Merchant share is $50 on January 2, 2012 (the intrinsic value is therefore $0). On
The goal of this research assignment is to become more familiar with the FASB Accounting Standards Codification website, as you will be using it in future chapters to find the answers to Research Exercises and Cases that reflect situations often arising in practice. Please answer the following 3 multi-part questions that are di
You have recently been hired as accounting staff at Winnie Manufacturing Company. The company is preparing its December 31, 2012 financial statements and there were a number of unusual transactions that occurred during the past year. The accounting department needs to determine the appropriate Income Statement classification f
I have to fill out an application to attend a special program that gives students opportunities to attend workshops and possibly get an internship and I am having trouble with a question. What is the best way to answer this question? Give me an example of tough problem you could not solve. What was tough about it, what did
Molly, a CPA in public practice is on the board of directors of a local bank. One of Molly's clients has a $100,000 ninety day loan from the bank. Molly, while preparing the clients tax return finds that the client's revenues from their business is down significantly. Any further deterioration may very well result in the clie
1, 3, 5 and 7 1. construct a Gantt chart for the following set of activities and indicate the project completion time: activity activity predecessor time(weeks) 1 5 2 4 3 1
Crystal, Incorporated acquired 100 percent of the assets and liabilities of Design, Inc. by issuing its common stock in a business combination. At the time of the combination, the fair values of Design's net assets and Crystal's common stock were $440,000 and $410,000, respectively; the book value of Design's net assets was $320
Amanda and Chris McDermott own a small business, Plastic Dollars, that produces and maintains stored value cards for retailers. Most of the cards they sell are gift cards, such as those available in various restaurants and stores. They just started their business two years ago, but this year they hope to sell about four million
The Popkin Umbrella Manufacturing Company maintains an inventory of miscellaneous supplies (e.g., pen, pencils, paper, floppy disks, and envelopes) for its clerical workers. The company stores these supplies on shelves at the back of the office facility, easily accessible to all company employees. The company's accountant,
17. Detailed variance analysis. The following are planned and actual revenues for Cutting Edge Surgery Center. Because they are one of four surgery centers in the community, the administrator is concerned with his rates in relation to those of his competitors. Planned Actual Surgical volume 1,500 1,700 Gift shop reven
A parent company does not have to file a consolidated tax return even if it owns more than 80% of a subsidiary. Required: a) Why might a parent want to file a consolidated tax return? b) Why might a parent not want to file a consolidated tax return? Please answer with sufficient detail and references.
I need to provide 4 financial statement, income statement, retained earnings, balance sheet, and cash flows, based off of the following numbers: Item Year2 Year1 Accounts Receivable 1190 1182 Accruals 429
Which of the following groups constitute a controlled group? (Any stock not listed below is held by unrelated individuals each owning less than 1% of the outstanding stock). For brother-sister corporations, which definition applies? a. Mark owns 90% of the single classes of stock of Hot and Ice Corporations. b. Johnson and C
Monte and Allie each own 50% of Raider Corporation, an S corporation. Both individuals actively participate in Raider's business. On January 1, Monte and Allie have adjusted bases for their Raider stock of $80,000 and $90,000 respectively. During the current year, Raider reports the following results: Ordinary loss
Review the 2005 and 2004 annual reports for PepsiCo Inc and The Coca-Cola Company. Compare the two companies and provide recommendations to improve their financial status. Include an introduction, a vertical and horizontal analysis and classic ratios for liquidity, solvency, and profitability in your analysis for 2005 and 2
Please check my answers to the following questions. Question 1: When real estate is sold and a mortgage is involved, how is the amount realized on the sale determined? Answer: Amount realized. The amount realized from a sale or exchange is the total of all money received plus the FMV of all property or services received
Activity-based Costing (ABC) ReebookRealflex produces shoes for circuit training and walking. Recently, the management of the company has decided to adopt the activity-based costing system and has identified three activity cost pools. Information on its annual overhead costs and the activity cost pools are as follows: Activ
Review an annual report of a popular company ie. Target, Kohl's Bass Pro shops, and answer the following questions with references: 1. From the annual reports you previewed, what is the company's corporate strategy? What are their company goals and were they successful in achieving those goals? 2. Would you invest in the
Enron Corporation's 2001 third-quarter 10-Q report disclosed the following transaction with LJM2, a nonconsolidated special purpose entity (SPE) that was formed by Enron: In June 2000, LJM2 purchased dark fiber optic cable from Enron for a purchase price of $100 million. LJM2 paid Enron $30 million in cash and the balance i