Elvin, 45 years of age, sells his residence in 2008. He recieves $30,000 in cash and the buyer assumes his $105,000 mortgage. Elvin also pays $6,500 in commissions and transfer costs. a. Calculate the amount realized on the sale. $____________________ b. If the residence was acquired in 1986, and its adjusted basis is $7
23. Freije Refrigeration Company has an inventory of raw materials and parts consisting of thousands of different items which are of small dollar value individually but significant in total. A fundamental control requirement of Freije's inventory system is that: a) Perpetual inventory records be maintained for all inventory it
Suppose the stock of Host Hotels & Resorts currently trading for $20 per share. a. If Host issued a 20% stock dividend, what will its new share price be? b. If Host does a 3:2 stock split, what will its new share price be? c. If Host does a 1:3 reverse split, what will its new share price be?
1. Your client has operated a sole proprietorship for several years and is now interested in reaising capital for expansion. He is considering forming either a C corporatoin or an LLC. a. Describe the treatment of an LLC and discuss any advantages the LLC offers over eht C corporation. b. Assume instead the clinet ha
Exercise 8-1 ABC Cost Hierarchy [LO1] Classify each of the activities as either a unit-level, batch-level, product-level, or organization sustaining activity. a. Various individuals manage the parts inventories __________ b. A clerk in the factory issues purchase orders for a job __________ c. The p
A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000 The Articles of Partnership stipulated that profits and losses be assigned in the following manner: Young was to be awarded an annual salary of $26,000 with $13,0
State the accounting equation. Explain and define all components of the equation and provide examples of each. You need to state the accounting equation. As part of this, you need to discuss each component of the equation and give appropriate examples, such as accounts or types of accounts found in the equation.
Please help with the following problem. Provide step by step calculations. Mark, Pete and Mickey are equal partners in the 2MP Partnership. At the beginning of the year, Mark's basisin his partnership interest was $15,000, Pete's basis was $10,000, and Mickey's basis was $20,000. The partnership reported taxable income of $3
Consolidated Industries is studying the addition of a new valve to its product line. The valve would be used by manufacturers of irrigation equipment. The company anticipates starting with a relatively low sales volume and then boosting demand over the next several years. A new salesperson must be hired because Consolidated's cu
Mallard Incorporated (MI) is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has been in business for five years. At the end of the most recent year, 2005, the accounting records reflected total assets of $500,000
Consider the following data regarding factory overhead: Variable Fixed Budget for actual hours of input $45,000 $70,000 Applied 41,000 64,800 Budget for standard hours allowed for actual output achieved ? ? Actual incurred 48,500 68,500 Using the above data, fill in the following blanks with the variance amounts. Use
Variable and Absorption Costing Chan Manufacturing Company data for 20X7 follow: Sales: 12,000 units at $17 each Actual production 15,000 units Expected volume of production 18,000 units Manufacturing costs incurred Variable $120,000 Fixed 63,000 Nonmanufacturing costs incurred Variable $ 24,000 Fixed 18,000 1. De
Consider the following information pertaining to a year's operations of Youngstown Manufacturing: Units sold 1,400 Units produced 1,600 Direct labor $4,200 Direct materials used 3,500 Fixed manufacturing overhead 2,200 Variable manufacturing overhead 300 Selling and administrative expenses (all fixed) 700 Beginning inv
Fill in the missing amounts in the following schedule. April May June 1. Sales * $80,000 $60,000 $________ Cash Receipts From cash sales $______ $______ $45,000 From sales on account** $______ $34,000
Only the following questions are to be answered a) If the materials price variance was $3,960 unfavorable, what was the standard materials price per pound? b) If the materials quantity variance was $2,871 favorable, what was the standard materials quantity per unit? f) If total budgeted manufacturing overh
BE2−8 Identify characteristics of useful information. (SO 7) The accompanying chart shows the qualitative characteristics of accounting information. Fill in the blanks. BE2−9 Identify characteristics of useful information. (SO 7) Given the characteristics of useful accounting information, complete each of the follow
Please help with the attached questions. The "deadline" area stated that I must give 3 hours to complete; HOWEVER, I NEED them answered in 1 hr and 45 min. >> No later than 1:35PM PACIFIC Time. As always, thank you in advance for your help and consideration. I have allotted 1 credit per question and there are a total
How does a subdivision of duties enhance internal control?
Fresh Fruits Corporation wholesales peaches and oranges. Nora Boyd is working with the company's accountant to prepare next years budget. Ms Boyd estimates that sales will increase 5% annually for peaches and 10% for oranges. The current years sales revenue data follow: 1rstq 2nd q 3rd
1) Dominion expects to have net income next year of $24 million and Free Cash Flow of $27 million. Dominion's marginal corporate tax rate is 40%. Dominion's EBIT is closest to: [Hint: EBIT = NI + Taxes + Interest expense] $40 Million $43 million $45 million $60 million 2) Dominio
The Densain Water plant in Naples, Fl, bottles purified and flavored water in a variiety of sizes (20,36,48, and 64 ounces) for sale through vending machines and retail stores. Volumes is measured as bottle ounces. The plant's annual budgeted fixed manufacturing overhead amounts to $1.8 million, and variable manufacturing overhe
How do the various classifications of investments impact financial statements? What is the rationale behind the different accounting methods for the various investment classifications? Which is more important when determining the accounting method for securities, influence or ownership? Why?
Various Accounting Issues
Here are records from manufacturer who used direct labor hours as its cost driver: Month Direct Labor Hours Manufacturing Overhead Jan. 23,000 $454,000 Feb. 30,000 517,000 Mar. 34,000 586,
Please help with the following problem. Frank Caster and George Wilson were equal partners of the F&G partnership, which reported its income on a fiscal year ending september 30. For fiscal year 2007-2008, the partnership's ordinary income was $30,000. It's ordinary income for the months of October-December 2008 was $9,000.
Simpson Corporation computed its diluted earnings per share for the year ended September 30. 20X2. The company had 200, 000 shares outstanding at the beginning of the year, issued 60,000 shares at April1 X2, and reacquired 2,000 shares to be held in its treasury on July 1, 20X2. The company also has 2,000 options outstanding
Big Brown Corporation's derivative investments had the following fair values at December 31, 20X6 and December 31, 20X7: 12/31/X6 12/31/X7 Speculative derivatives $280,000 $310,000 Derivatives used as fa
Rubard Farms depreciates its assets at a faster rate for tax purposes then for GAAP financial statements purposes, and invests heavily in municipal bonds. In its first year of operations, the year ended December 31, 20X3, Rubarb's pretax financial income reconciles to its tax return income as follows: Pre-tax financial income .
White Industries started their operations on January 1, 20X3 and recorded $400,000 in warranty expense during the year. The warranty expense was the only difference between the company's pretax financial income and its tax return income of $900,000. White will be required to pay these warranties at a rate of $100,000 per year be
Standard costing and variance analysis techniques are most often associated with manufacturing businesses. You have been contracted by the owner of a small advertising agency to evaluate the use of standard costing techniques for the services provided by his firm. Discuss whether you believe standard costing techniques can b