I apologize for the short notice, but if I had known this website existed earlier, I would have been on here days before! I am studying for my final exam tomorrow and these questions come from a test bank my teacher gave us to study from, unfortunately I cannot be sure of the answers to these questions - I know it is short noti
1. Mr. Z, a nondealer, sold assets on an installment plan. Determine Mr. Z's gross income for 2008. Relevant data include: Year Installment sales Gross profit 2008 collections 2008 $200,000 50,000 25,000 2007 300,000 81,000
1. Joe and Jane are married taxpayers who file a joint return. They have itemized deductions of $11,250 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2008? 2. Compute Marie's taxable income for 2008, assuming she is single and claims two dependent children. Her adjusted gr
1. Helix Services, Inc., has been in business for six months. The following are basic operating data for that period. Month July Aug. Sept. Oct. Nov. Dec. Service hours 120 136 260 420 320 330 Revenue $6,000 $6,800 $13,000 $21,000 $16,000 $16,500 Operating costs $4,300 $5,300 $ 7,100 $11,200 $ 9,100 $10,600 Requir
Two new software projects are proposed to a young start up company. The Alpha Project will cost $150,000 to develop and is expected to have an annual net cash flow of $40,000. The Beta Project will cost $200,000 to develop and is expected to have an annual cash flow of $50,000. The company is very concerned about their cash flow
** Please see the attached file for the complete problem description ** A company's employees had the following earnings records at the close of the current payroll period: The company's payroll taxes expense on each employee's earnings includes: FICA Social Security taxes of 6.2% on the first $84,900 plus 1.45% FICA Medica
Need help with the attached problems. Question 1 Corey Issacson is an investor in stone cold interprises. Last week he received the companys most recent financial statements but some of the numbers were smudged and unreadable. Each of the unreadable numbers is represented with a letter as shown below and at the top of t
"I think that breaking up the large corporations would encourage competition for those smaller business such as the mom and pop operations and give them a equal opportunity. However, of course this will never happen and of course the government would never bail out the little guy. However, as said before, if the large corporat
1. Explain the similarities and differences between standards and budgets. Contrast the accounting for standards and budgets. 2. In the direct labor variance matrix, there are three factors: (1) Actual hours Actual rate, (2) Actual hours Standard rate, and (3) Standard hours Standard rate. Using the numbers, indicate the form
____ 1. A responsibility center that incurs costs (and expenses) and generates revenues is classified as a(n) a. cost center. b. revenue center. c. profit center. d. investment center. ____ 2. The most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center is
I have the following problem: A critical piece of operational equipment contains 30 parts of the same type. The equipment operates 24 hours a day and the critical pieces have a predicted failure frequency of 10,000 hours. If spares are procured as part of an EOQ policy with: cost per unit of $100, cost of preparation and ship
Stovall LLC uses the calendar year and the cash method of accounting for tax purposes. It made the following rent payments on December 31, 2003. In each case, determine Stovall's 2003 deduction for the payment: a. $30,000 for the use of equipment under a six-month lease that began on May 1, 2003. b. $1,750 rent for warehouse
I need some help in answering the attached Multiple Choice Questions. Thank you in advance... ** See ATTACHED file(s) for complete details ** 1. Which of the following methods of determining annual bad debt expense best achieves the matching concept? a. Percentage of sales b. Percentage of ending accounts receivable c. Pe
Black Castle Inc. adopts a plan of complete liquidation and distributes a truck worth $15,000 with an original basis of $25,000 and an adjusted basis of $7,000 to a 40 percent shareholder with a stock basis of $3,000. The shareholder subsequently claims $4,000 of depreciation on the truck, and later sells it for $13,000. a.
A cash method corporation adopts a plan of complete liquidation and distributes the following assets to its shareholders: - A truck that was purchased for $25,000, is worth $18,000, and has a basis of $11,000. - An installment note receivable with a remaining face amount of $20,000, resulting from a sale of a warehouse f
Corporation A owns 100 percent of the stock of Corporation B, and also owns B Corporation debentures with a face amount (and basis) of $200,000. A plan of liquidation is adopted and Corporation B is liquidated under Code Sec.332. Pursuant to the liquidation, Corporation B inventory with a FMV of $200,000 and a basis of $140,0
Need to write a memo that describing the change in focus from the income statement to the balance sheet. Describe the concepts of permanent and temporary differences. Give two examples of each and how they reflect the new focus. The issue of SFAS No. 109, the framework now used in accounting for income taxes. (can use the
Help writing up a 3 Column Cash Book of the Transaction that was done with our company last month (March2009) March1 Balance brought forward : Cash in Hand : $5000 Cash at Bank : $ 90,000 March2 Received Cash loan of $25 ,000 from Partners . March3 Bought goods of $156,000 March4 Bought Motor Van paying by check
Do you think that American car manufacturers need to reduce their cost struggle (employee labor) to become competitive? Or is the entire industry cyclical with even Toyota struggling during this recession?
Henson Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,000 golf discs is: Materials $ 10,000 Labor 30,000 Variable overhead 20,000 Fixed overhead 40,000 Total $100,000 Henson also incurs 5% sales commission ($0.35) on each disc sold. Wood Corporation offers
Shannon Inc has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity. Variable manufacturing overhead is charged to production at the rate of 50% of direct labor cost. The direct materials and direct labor cost per unit to make the lamp shades are $4.00 and $6.00 respectiv
Parking Space Inc. distributed $18,000 to Speedways Inc., a 15 percent shareholder. Parking Space's E&P applicable to Speedways' distribution is $5,000 and Speedways had a basis in its stock of $7,000. a. How much dividend income does Speedways have? b. How much and what kind of taxable income does Speedways have because o
Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650
Explain the finance concepts found in the readings and how it relates to the scenario.
A tax problem about how and where to report rental income items on income tax return forms: Decision to sell or rent a condo for extra income to pay off the house. Have had condo rented for 5 years. Mike purchased a condo for $125,000. A similar condo recently sold for $165,000. They still owed $87,000 in mortgage payments. T
"Look at the number of retail chains that have had to close their doors. I am not sure how much was due to competition or how much was on consumers who over extended their credit and defaulted on their payments. This would cause these chains to lose money." I believe that even though the credit situation paid a major role in t
Overhead costs always present problems for managers because most of them are indirect costs. Not only that, several of these costs are fixed. So the question is how to evaluate overhead costs especially when activity may vary while the costs may remain the same.
Why is the flexible budget appropriate for evaluation of performance? Is there any reason why a company should prepare a static budget since its poorly suited for evaluating performance?
1 Is there any advantage to having a C Corporation instead of an S Corporation? The S Corp. appears to have the tax advantage on its side. 2 Why aren't life insurance proceeds taxable? Second, if tax-exempt income is not reportable on a tax return, can a taxpayer claim de
True and False 1. The person who pays a tax directly to the government bears the economic incidence of the tax. 2. A cash basis taxpayer must account for any prepayment of interest expense under the accrual method.