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
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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
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.
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
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
Can you please help me understand and answer these questions? Please see *BOTH* Word attachments for complete question list!
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
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.
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?
1. Which of the following is not an asset: a. Accounts Payable b. Furnishing and Equipment c. Supplies d. Cash 2. Amy Co. acquired $500 worth of supplies on credit. Which of the following journal entries would be recorded? a. Debit supplies, credit cash b. Debit cash, credit supplies c. Debit supplies, credit accoun
Answer is provided for these questions. Please use Excel to help me understand how this answer came and show all calculations. 1.Mike deposited $1,000 in a savings account. The annual interest rate is 10 percent, compounded semiannually. How many years will it take for his money to grow to $2,653.30? Answer: Solve for
Charlie and Maribelle Brown have owned and operated a retail furniture store for more than 20 years. They have employed an independent CPA during this time to prepare various sales tax, payroll tax, and income tax returns, as well as financial statements for themselves and the bank from which they borrowed money from time to tim
On October 1, 2007, Lyman Co. purchased to hold to maturity, $1,000, 9% bonds for $208,000. An additional $6,000 was paid for accrued interest. Interest is paid semi-annually on December 1 and June 1 and the bonds mature on December 1, 2011. Lyman uses straight-line amortization. Ignoring income taxes, the amount to be repor
Prepare income statements under variable and absorption costing for the year ended December 31, 2007. - see attachment Jennifer Bruner Cost Accounting December 21, 2008 Variable versus Absorption Costing Introduction: The Zwatch Company manufactures trendy, high-quality, moderately priced watches. As Zwatch's senior
Bart's Wood Work Company Assume that the company keeps no inventories. Below is information that pertains to Bart's Wood Work Company for the past year. Based on this information prepare a financial accounting income statement (that is in the required GAAP for US external reporting). From this information make appro
Suppose you have a lemonade stand, and when you charge $2 per cup of lemonade you sell 120 cups. But when you raise your price to $3 you only sell 60 cups. Write an equation for the number of cups you sell as a function of the price you charge. Denote "C" for number of cups, and "P" for the price you charge. Assume the func
Using the various components of Form 1040 listed below, enter the components in the correct order in which they are found on Form 1040: 1) Payments 2) Tax and credits 3) Income 4) Signature 5) Label 6) Other Taxes 7) Adjusted Gross Income 8) Refund 9)
Would each of the following assets be "good" money? Why or why not? A. Gold B. Dirt C. Corn D. Oil (Often called liquid gold)
Fowler Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Exercises Costs Incurred Production in Units 5,000 10,000 Total Cost/ Total Cost/ Production Costs Cost Unit Cost Unit Direct materials $8,250 $1.65 $16,500 $1.65 D
Define: -assets, current assets, liability, current liability, contributed capital, retained earnings. -what is the accounting equation?
Do you think that the FASB could stand alone without the help of other organizations?
Willkom Corporation bought 100 percent of Szabo, Inc., on January 1, 2009, at a price in excess of the subsidiary's fair value. On that date, Willkom's equipment (10 -year life) has a book value of $300,000 but a fair value of $400,000. Szabo has equipment (10-year life) with a book value of $200,000 but a fair value of $300,0
Panner, Inc. owns 30 % of Watkins and applies the equity method. During the current year, Panner buys inventory costing $54,000 and then sells it to Watkins for $90,000. At the end of the year, Watkins still holds only $20,000 of mechandise. What ammount of unrealized gross profit must Panner defer in reporting this investm
Ace purchases 40% of Baskett Co. on Jan 1 for $500,000. Although Ace did not use it, the acquistion gave Ace the ability to apply significant influence to Baskett's operating and financing policies. Baskett reports assets on that date of $1,400,000 with liabilties of $500,000. One building with a seven-year life is undervalu
A student from a former class posted this and it is relevant to the material we have gone over. Check out the article and let me know your thoughts! "Our readings have discussed the importance of recognizing revenues and expenses in the appropriate time period, but here is an article by Browning (2008) about the importance
Using the statements in the attached file, please answer the questions: Compute the following ratios for 2002 and 2003: a. Earnings per share b. Return on assets c. Current ratio d. Times interest earned e. Asset turnover f. Debt to total assets g. Current cash debt coverage h. Cash debt coverage i. Free cash flow
Mary Graham and Paula Moore are partners engaged in operating the M&P Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office worker).........$1,700 per month A. Drugan (saleswoman).....................$15,000 per year G. Beiter (stock clerk)....................$180 pe
In the cost analysis of public projects, there is a large factor to consider that is neither financial or political...and that is the measurement and calculation of social benefit or impact costs, one or the other, or both. One aspect to teach about public administration is how to account for the social expectations and outcomes
Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges. Identify activity cost drivers. Compute overhead rates and assign overhead using ABC. Activity-Based Costing overhead costs of $89,500 were estimated. An
What are the limitations of activity-based costing? Under what conditions is ABC generally the superior overhead costing system?