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    Income tax: Gain on Land Sale

    True/False Michael contributes land with a value of $120,000 and a basis of $80,000 to the MNO Partnership in exchange for a 1/4 interest. Soon thereafter, the partnership sells the land for $140,000. Of the gain on the land sale, $15,000 is allocated to Michael.

    Income Tax: Corporations & Partnerships True or False

    True/False Meagan purchased her partnership interest from Lisa on the first day of the current year for $30,000 cash. She received a $15,000 cash distribution from the partnership during the year, and her share of partnership income is $12,000. If her share of partnership liabilities on the last day of the partnership year is

    Income tax: Equal Partnership

    Mark and Jodi formed an equal partnership on August 1 of the current year. Mark contributed $25,000 cash and land with a basis of $5,000 and a fair market value of $10,000. Jodi contributed equipment with a basis of $23,000 and a value of $35,000. Jodi's tax basis in her interest is $23,000; Mark's tax basis is $30,000.

    computing taxable income and more

    Chapter 6 - Problem I: 6-57 Bryce, a bank official, is married and files a joint return. During 2007 he engages in the following activities and transactions: a. Being an avid fisherman, Bryce develops an expertise in tying flies. At times during the year, he is asked to conduct fly-tying demonstrations, for which he is paid a

    Minimize taxes for individuals

    Need help in preparing a paper discussing the income tax minimzation strategies for individuals. Which strategies are the most effective and why? Please include the references.

    Tax questions: flat, lump sum, ad valorem, luxury auto excise tax

    A. Some have argued that a lump sum tax is the most equitable and efficient system of taxation. If lump sum taxes are so efficient and equitable, why aren't they widely used? B. In 2002, the US federal government levied a tax of 3 percent on that part of a car's price exceeding $40,000. (For example, the tax liability on a $5

    Tax consequences

    How do the tax consequences differ for employees and self employed persons?

    Maintaining Records for Principal Residential Improvements

    One reason Congress expanded the exclusion of gain on the sale of a principal residence and eliminated the deferral provision was to eliminate the need for many taxpayers to keep records of capital improvements that increase the basis their residence. Why might taxpayers still need maintain such records to substantiate ad

    Accounting help problem BYP13-7

    BYP13-7 R.J. Falk is the chief executive officer of Ventura Electronics. Falk is an expert engineer but a novice in accounting. Falk asks you, as an accounting major, to explain (a) the bases for comparison in analyzing Ventura financial statements and (b) the limitations, if any, in financial statement analysis. Broadening

    Deductions from Purchases and Non-Deductible Items

    Prepaid Interest. During the current year, Richard and Alisha, a married couple who use the cash method of accounting, purchased a principal residence for $320,000. They paid $40,000 down and financed the remaining $280,000 of the purchase price with a 30-year mortgage. At the closing, they also paid $500 for an appraisal, $500

    What is the relationship between average and marginal productivity?

    What is the relationship between average and marginal productivity? b) How do changes in average and marginal productivity affect the cost of production? c) What are the impacts of innovation and technology on the cost of production? d) Can you utilize a real-world example to explain the law of diminishing marginal

    Blue Sky Airlines: selling an option to existing shareholder

    Can you help me get started with this assignment? Construct a one-page document "selling" your chosen option to your existing shareholders and bondholders based on the merits of your plan, in comparison to the short-term or long-term shareholder value of rest of the alternatives. Consider that Blue Sky Airlines has the

    Mostert Music

    Mostert Music Company had the following transactions in March: 1. Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account. The cost of the instruments was $7,000. 2. Purchased $4,000 of new instruments inventory; paid $1,000 in cash and owed the rest on account. 3. Paid $600 in wages for th

    Allocation of common costs for ABC Company: identify and explain impact

    See file attached. Cost Reallocation The following link describes an organization's approach to allocation of costs. Some of the acronyms used in this report is explained in the introduction to the same report. Required: You are required to read the above article and to discuss the various issues of cost allocation in


    Heavy Metal Corp is a steel manufacturer that finances its operations with 40% debt, 10% preferred stock, and 50% equity. The interest rate on the company's debt is 11%. The preferred stock pays an annual dividend of $2 and sells for $20 a share. The company's common stock trades at $30 a share, and its current dividend (D0) of

    Define accrual accounting and contrast it with cash basis accounting.

    Define accrual accounting and contrast it with cash basis accounting. What four conditions must normally be met for revenue to be recognized under accrual basis accounting? Reporting Cash Basis versus Accrual Basis Income Mostert Music Company had the following transactions in March: a. Sold instruments to customers fo

    Accounting Transactions: Post transactions using the accounting equation.

    Please post these transactions using the Accounting equation. Asset = Liabilities + Owners Equity 1. Dan inspected 10 homes this week, charging the customers a total of $2100 and receiving payment of $1,500. He billing the rest. 2. He paid $500 on a business credit card. $100 was interest 3. Dan

    Explain the process of conducting research

    Supporting your business messages with reliable information adds credibility to your writing by providing solid research. Explain the process of conducting research and the importance of this process.

    Accounting questions are posed.

    1- A company purchased land for $70,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be recorded at a. $77,000. b. $70,000. c. $75,000. d. $82,000.

    Price elasticity is overviewed.

    What is price elasticity of demand? What is the relationship between income and price elasticity of demand? What is cross price-elasticity of demand?

    Dividend Income with Respect to Redemption

    27. Five years ago, Eleanor transferred property she had used in her sole proprietorship to Blue Corporation for 1,000 shares of Blue Corporation in a transaction that qualified under § 351. The assets had a tax basis to her of $400,000 and a fair market value of $550,000 on the date of the transfer. In the current year, Blue

    Gull Corporation scenario for bookkeeping

    24. Joe and Kay form Gull Corporation. Joe transfers cash of $250,000 for 200 shares in Gull Corporation. Kay transfers property with a basis of $50,000 and fair market value of $240,000. She agrees to accept 200 shares in Gull Corporation for the property and for providing bookkeeping services to the corporation in its first ye

    Corporation current E&P for Scarlet Corporation

    25. Scarlet Corporation has a deficit in accumulated E & P of $500,000. It has current E & P of $350,000. On July 1, Scarlet distributes $400,000 to its sole shareholder, Lupita. Lupita has a basis of $95,000 in her stock in Scarlet Corporation. As a result of the distribution, Lupita has: a. Dividend income of $400,000. b.

    Disproportionate redemption is illustrated.

    28. Brenda owns 600 shares of Eagle Corporation stock at a time when Eagle has 1,000 shares of stock outstanding. The remaining shareholders are unrelated to Brenda. What is the minimum number of shares Eagle must redeem from Brenda so that the transaction will qualify as a disproportionate redemption? a. 121 shares. b. 231 s