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Accounting

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

CALCULATE TAX RATE

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

Business deduction

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

Property Income tax: Corporations & Partnerships

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

Income tax: Corporations & Partnerships

23. Eve transfers property (basis of $120,000 and fair market value of $400,000) to Green Corporation for 80% of its stock (worth $350,000) and a long-term note (worth $50,000), executed by Green Corporation and made payable to Eve. As a result of the transfer: a. Eve recognizes no gain. b. Eve recognizes a gain of $230,000.

Cash dividends are demonstrated.

1. Salvage Value. Your firm purchased machinery with a 7-year MACRS life for $10 million. The project, however, will end after 5 years. If the equipment can be sold for $4.5 million at the completion of the project, and your firm's tax rate is 35 percent, what is the after-tax cash flow from the sale of the machinery? 2. C

Accounting practice questions

Please complete the attached practice problems. Indicate the two (or more) effects on the accounting equation of the business or company. I have completed the first one. The owner invests personal cash in the business. Assets: Increase Decrease No Effect Liabilities: Increase Decrease NoEffect Owner's (or Stockho

With respect to "fair-value" how do we determine that in a turbulent market?

Can you help me get started with this assignment? The Financial Accounting Standards Board (FASB) plays an important role in establishing accounting standards. Here is an interesting article by Norris (2008) that describes how the FASB and the Securities Exchange Commission (SEC) have provided additional guidance on interpre

Please define microeconomics and macroeconomics.

1. Please define microeconomics and macroeconomics. 2. Please state the law of demand and law of supply and explain how the law of demand and the law of supply interact to bring about equilibrium. 3. Please explain the importance of substitution to the laws of supply and demand and give a real-world example.

Reporting Guidance for Profit and Not-For-Profit Organizations

What are the differences in reporting guidance in a for-profit and not-for-profit organization? What are the similarities in reporting guidance for the above? How do these differences and similarities affect the comparability of financial reports? Should these reports be comparable? Why or why not?