(a) A company purchased a patent on January 1, 2008, for $2,500,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2008, the company paid legal costs of $162,000 in successfully defending the patent in an infringement sui
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Some problems from book Investment Analysis and Portfolio Management (9th ed.). Book from: Frank K. Reilly, & Keith C. Brown, (2009). Mason, OH: South-Western/ Cengage Learning.
Chapter 11, question 1, page 350; Discuss the difference between the top-down and bottom-up approaches. What is the major assumption that causes the difference in these two approaches? Problems 1, 2, 4, 5, page 350 1. What is the value to you of a 9 percent coupon bond with a par value of $10,000 that matures in 10 years if
In 2008, Margaret and John Murphy are married taxpayers who file a joint tax return with AGI of $25,000. During the year they incurred the following expenses: Hospitalization Insurance Premiums $1,050 Premiums on an insurance policy that pays 300 $100 per day for each day Margaret
Thomas Corporation began business by issuing $2,000 of common stock on January 1, 2010. The business performed $8,000 of service on account in 2010 and collected $6,000 of this amount by year end. It paid operating expenses of $4,500 and paid a $500 dividend to stockholders. Remember to show your work for parts a - c
In January, 2007, M Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2007, 500,0
On January 1, 2000, B. Company purchased equipment at a cost of $50,000. The equipment was estimated to have a salvage value of $5,000 and it is being depreciated over eight years under the sum-of-the-years'-digits method. What should be the charge for depreciation of this equipment for the year ended December 31, 2007?
V Co. purchased machinery that was installed and ready for use on January 3, 2006, at a total cost of $69,000. Salvage value was estimated at $9,000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2007, V. should record depreciation expense on this machinery in the a
R. Corporation purchased for $855,000 a tract of land on which was located a warehouse and office building. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land $300,000 $280,000 Warehouse 200,000 180,000
10.1 read and interpret corporate governance statement. Refer to the "corporate governance" disclosures provided the "link on Intel corporation's web site. Identify the principal topics covered in those disclosures. Are there other topics that you believe would be appropriate to have included in those disclosures? Explain your a
Describe how the tax system promotes social objectives. Use specific tax codes to support your answer. Please give references.
Financial accounting scenario journal for my made up company.
Part A: The luggage department of ABC store has annual revenues of $1,000,000, variable costs of $300,000, direct fixed costs (like special store fixtures, and per square foot rent) of $500,000, and allocated indirect fixed costs of $400,000 (like management salaries and insurance). What would be the effect on total net income
The Big Foam Brewery Company has 30,000 shares of $10 par value common stock authorized and 20,000 shares issued and outstanding. On August 15, 2007, Big Foam Brewery Company purchased 1,000 shares of treasury stock for $16 per share. Big Foam Brewery Company uses the cost method to account for treasury stock. On September 14, 2
Jeff Able is a partner in the Willing and Able partnership. On June 1, 2008, Jeff transfers property to the partnership that has a fair market value of $60,000 and adjusted basis to Jeff of $10,000. Three weeks later, the Willing and Able partnership transfers $40,000 cash to Jeff. Willing and Able would not have transferred the
Elder Attorney had practiced law for several years and had accumulated $50,000 in accounts receivable. He reported his income for tax purposes under the cash receipts and disbursements method. Elder formed an equal partnership with Senior Counsel, Lawyers Unlimited, a cash-basis law partnership, and transferred his $50,000 accou
Joe Quick and Jane Reddy are equal partners in the Quick and Reddy partnership. On the first day of the current taxable year, Joe's adjusted basis in his partnership interest is $10,000 and Jane's adjusted basis is $2,000. During the year, Joe had withdrawals of $25,000 and Jane had withdrawals of $20,000. Given the following pa
At January 1, 2007, Horse Corporation reported retained earnings of $2,000,000. In 2007 Horse discovered that 2006 depreciation expense was inderstated by $500,000. In 2007, net income was $900,000 and dividends declared were $250,000. The tax rate os 40%. PRepare a 2007 retained earning statement.
Sales in units: planned 1,000, and the actual sales in units are not given. Selling price per unit: planned $6. actual $6.5. Variable cost per unit $4.0 for planned and actual. The manager calculation sales price variance is $600 Favorable. Find the actual units sold.
Sales in units: planned 1,000, actual 1020. Selling price per unit: planned $7. actual $6.9. Variable cost per unit $4.5 for planned and actual 1. Find sales price variance in absolute dollars 2. Find sales volume variance in absolute dollars 3. Is the price variance Favorable or unfavorable variance? 4. Is the volume var
Calculate operating income and net income: the following information is available from the accounting records of Spenser Co. for the year ended December 31, 2004: Selling, general and administrative expenses $51,000 Accounts payable 85,000 Extraordinary gain from lawsuit, ne
Our corporation was organized in July 15, 2015. It was authorized to emit 150.000 $25 common stocks of even value and 50.000 cumulative preferred stocks of 14% class A. The class A to of the Favorites the action has an established value of $50. The following transactions related to these actions happened. a. Emission of 55.000
Davis Company provides the following information budgeted for 2007. Sale price $50 by unit Cost to manufacture variable $32 by unit Fixed cost of manufacture $100,000 Fixed cost of sales and administrative $40,000 Davies predic
Engle Manufacturing Company established the following information of prices and costs: Sale Price $50 por unidad Variable cost of production $32 por unidad Fixed costs total of production $100,000 Fixed costs total of sale and administrative
A company has three product lines, one of which reflects the following results: Sales $215,000 - Variable expenses $125,000 = Contribution Margin $90,000 - Fixed Costs Expenses $140,000 = Net Loss $(50,000). If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to oth
You have been engaged to review the financial statements of Gottschalk Corporation. In the course of your examination you conclude that the bookkeeper hired during the current year is not doing good job. You notice a number of irregularities as follows: 1. Year-end wages payable of $3,400 were not recorded because the bookkee
In each of the following independent cases determine the amount of charitable contributions allowed the individual before consideration of any percentage limitations. A. Charitable Chubbs contributed an item of inventory from his sole proprietorship to a public charity for its use. The fair market value of the asset was $800
Problem 9-22 "Kitchen Rite" Kitchen Rite is considering outsourcing the production of a steel chassis that is used in a kitchen appliance' Two thousand chassis are produced per month. An outside vendor will supply an identical chassis for $9.90. The chassis is manufactured in two steps. A stamping press punches out the part fro
Rick's Bags manufactures both golf bags and tennis totes. Fixed manufacturing overhead is budgeted to be $187,200, variable manufacturing overhead is budgeted to be $1.10 per direct labor hour, and fixed selling and administration costs are budgeted to be $346,000. Each golf bag is expected to use 2.5 direct labor hours and each
MacGiver Brass is a brass plating firm with sales of $8 million and profits before taxes of $625,000. MacGiver has a loan outstanding at its local bank for working capital purposes. As the loan officer reviewing MacGiver's loan application, you are charged with making a recommendation as to whether the $608,000 loan should be r
The Densain Water plant in Naples, Florida, bottles purified and flavored waters in a variety of sizes (20, 36, 48, and 64 ounces) for sale through vending machines and retail stores. Volume is measured as bottled ounces. The plant's annual budgeted fixed manufacturing overhead amounts to $1.8 million, and variable manufacturin