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Establishment of 1231 assets

Why did Congress establish favorable treatment for 1231 assets? I. to encourage the mobility of capital II. to allow a larger deduction for losses III. to help business owners replace assets which had declined in value A. I only B. II only C. III only D. I and II only E. I, II, and III

Like-Kind Recognizing Gains

If there is a like-kind exchange of property between related parties, how long do they have to wait to dispose of the property received in order to avoid having to recognize any gain on the exchange? A. 6 months B. 1 year C. 2 years D. no waiting period

Direct, Indirect, and Unallocated Costs

Lockyear window company makes and sells three product lines- custom detailed windows, large standard windows, and small standard windows. The statement of operating income for the most recent period is shown here: Lockyear window company Statement of operating income T

Stock Dividend and Derivative Financial Accounting

1. How should a stock dividend that has been declared, but not yet issued be classified in a statement of financial position? Why? 2. Derivative accounting: What are the disclosure requirements for traditional and derivative financial instruments? Should companies disclose if such instruments are used for hedging or speculati

Discussing Business Law: Contracts, Minors and Land Value

First Question: In your opinion, are certain types of contracts unethical or unconscionable? (or at least should be) If so, what types of contracts are either unethical or unconscionable? How should the law treat a situation where a contract is unethical or unconscionable? Second Question: In discussing capacity, and specif

Zhao Zhao Manufacturing Company Company

See the attached file. Zhao Manufacturing Company has two departments, machining and finishing. For a given period the following costs were incurred by the company as a whole: direct material, $200,000; direct labor, $75,000; and indirect production, $80,000. The grand total was $355,000. The machining department incurred

ABC Hardware Analysis

ABC Hardware store is open for business 350 days a year. Annual demand for a power cutter at this store is 700 units. Replenishment cost is $15 per order and annual inventory holding cost is 10% of the inventory value. ABC pays $20 for each power cutter. What is the economic order quantity for this cutter, and what is the re

Financial Planning: Budgeting For-Profit and Non-Profit

So your new accountant could practice the budgeting process in your for-profit company, you want her to compare budgeting methods for two different kinds of entities. You give her information for a for-profit and for a nonprofit entity and ask her to complete the following: Given the assumptions and data in this Excel fil

Taxable Business Income

Joe operates a business that locates and purchases specialized assets for clients, among other activities. Joe uses the accrual method of accounting but he doesn't keep any significant inventories of the specialized assets that he sells. Joe reported the following financial information for his business activities during year 0.

Adjusted Gross Income

Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer parts store. For the first two months of the year, Alyssa worked for Staples, Inc., as an employee. In March, Alyssa a

Determining Risk of Stocks

Stock: Std. Dev. Beta ABC 12.5% 1.0 FGH 8.0% 0.5 MNO 20.2% 2.4 TUV 15.3% 3.0 1. a. According to the information listed above, which of the stocks would be considered riskiest by itself (2 pts.)? b. Which one would be the riskiest in a diversified portfolio of investments (2 pts.)? 2. Stoc

A real world problem with fractions

Using the internet, find a real world example where fractions were used to solve a problem. Explain what the real world problem is, what the fractions mean in the problem and explain how the problem was solved. In addition, be sure to explain what the solution is to the problem as well.

Direct Change Based on Accounting

Tutoring: Trimble Company sells an electronic toy for $40. The variable cost is $24 per unit and the fixed cost is $32,000 per year. Management is considering the following changes: Alternative #1 Lease a new packaging machine for $4,000 per year, which will reduce variable cost by $1 per unit. Alternative #2 Incr

AIS: Business Processes and Control

Of all the business processes in the Accounting Information Systems (AIS), which do you think is the hardest to control and why? Be specific in your discussion of internal controls.

What is the best means of estimating recurring income from operations?

I understand that non-recurring items such as adjustments for changes in accounting methods, extraordinary gains/losses, income from discontinued operations, etc. must not be included. However, what items should I address? I would like to establish the estimate for a firm over a three-year period but I'm not sure where to start

Comprehensive Annual Financial Report Briefing

Evaluation of a Comprehensive Annual Financial Report for a government entity Prepare an overview of government accounting for a business person, using the State of Georgia as an example. Describe the entity and evaluate the Management Discussion & Analysis (MD&A) section.

Eastman Kodak Company

PUT ANSWERS IN EXCEL ATTACHMENT Eastman Kodak Company is a provider of imaging technology products and services to the photographic,Graphic communications, and health-care markets. A condensed 2008 income statement follows (in millions): Sales $9,416 Costs of goods sold

Gross Profit Percentage from Property Sale with Assumption of Mortgage

Kevin sold property with an adjusted basis of $58,000. The buyer assumed Kevin's existing mortgage of $40,000 and agreed to pay an additional $60,000 consisting of a cash down payment of $40,000, and payments of $4,000, plus interest, per year for the next 5 years. Kevin paid selling expenses totaling $2,000. What is Kevin's gro

Recognized Gross Profit on an Installment Sale

Kyle sold land on the installment basis for $100,000. His basis in the land was $70,000. Kyle received a $40,000 down payment and a real estate installment sale contract calling for $60,000 in additional payments in future years. In addition, Kyle paid $6,000 in commissions on the sale. What is the gross profit to be recognized

Sec. 179 Deduction for qualifying five-year equipment

Elaine owns an unincorporated manufacturing business. In 2011, she purchases and places in service $250,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any section 179 deduction is $70,000. Elaine takes the maximum allowable deduction under section 179. Which of the foll

After-Tax Non-Recurring Charges

After-tax non-recurring charges are: 1. Estimated by tax-effecting pre-tax non-recurring charges using the company's effective income tax rate 2. Excluded from normalized EPS 3. Sometimes disclosed in the footnotes of a company's financial filings 4. All of the above Please select only 1 option from the 4 list

Calculating a firm's free cash flow (FCF)

Hello, I understand FCF be found by the expression FCF = (NOPAT - net investment in operating capital) First, I calculated NOPAT as EBIT(1-Tax rate) Naturally, I found EBIT listed on the income statement but I calculated the tax rate by dividing the amount of tax paid by the pretax income. 248/846 = 29.31% tax

Assumptions, Principles, and Constraints of Accounting

Please help me explain the following concepts: - The basic assumptions of accounting - The principles of accounting - The constraints of accounting - A conclusion stating how you think sound financial reporting depends on principles, assumptions, and constraints. Refer to the U.S. GAAP in your response.

IRC Section 351

How many distinct steps or requirements are contained in the language of IRC Section 351 (a) for non-recognition treatment, and what are they?

Taxation: Ownership and Income

1.Bendetta, a high-tax-rate taxpayer, owns several rental properties and would like to shift some income to her daughter, Jenine. Bendetta instructs her tenants to send their rent checks to Jenine so Jenine can report the rental income. Will this shift the income from Bendetta to Jenine? Why, or why not? 2.Latrell recently us

Accounting Information Systems Questions

What important information, related to the accounting equation, is captured by accounting information systems? How does this information get translated to the financial statements? Is it necessary for the accounting information systems to record debits and credits? Why or why not? Why do some organizations continue to use

Government and Institutional Accounting

In your role as the financial manager, you routinely review your firm's financial statements and financial ratios to evaluate the financial health of your company. How does one review and analyze financial statements in a for-profit company? How does this compare to how financial statements are analyzed for a nonprofit orga