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    Tax: charitable contributions, and AMT calculation

    24. Doug's records contain the following information: 1. Donated stock having a fair market value of $3,600 to a qualified charitable organization. He acquired the stock five months previously at a cost of $2,400. 2. Paid $700 to a church school as a requirement for the enrollment of his daughter. 3. Paid $200 for an

    Tax: unreasonable compensation; deductions for medical, taxes, interest

    1). Anita, the controlling shareholder and an employee of Southwest Corporation, receives an annual salary of $750,000. Based on several factors including the size of the corporation's operations and a comparison of salary received by officers of comparably-sized corporations, the IRS contends that Anita's salary should be no h

    Tax Accounting: passive losses, depreciation, Sec 1231, ordinary gain

    1). Julie reports the following income and loss: Salary $ 90,000 Income from activity A 60,000 Loss from activity B ( 35,000) Loss from activity C ( 55,000) Activities A, B, and C are all passive activities. Based on this information, Julie has a. adjusted gross income of $60,000. b. salary of $90,000 and net losse

    Tax Accounting: calculate adjusted basis in home, rental and other property

    1). Michelle purchased her home for $150,000, and subsequently added a garage costing $25,000 and a new porch costing $5,000. Repairs to the home's plumbing cost $1,000. The adjusted basis in the home is a. $150,000. b. $151,000. c. $180,000. d. $181,000. 2). Which one of the following does not affect the adjusted basis

    Depreciation tax shield 7

    7. A project will increase sales by $140,000 and cash expenses by $95,000. The project will cost $100,000 and be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34%. What is the value of the depreciation tax shield? (Points: 2) $

    Amount of the depreciation expense

    Sun Lee's Furniture just purchased some fixed assets classified as 5-year property for MACRS. The assets cost $24,000. What is the amount of the depreciation expense for the third year? (Points: 2) $2,304 $2,507 $2,765 $4,608 $4,800

    Megatronics corporation a massive retailer of electronics products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on R

    I need help with this problem. Megatronics corporation a massive retailer of electronics products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 13 percent return on its investment. During t

    ROI: residual income

    I need help with this problem. This is a sample problem that was brought up in class. Wyalusing Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customer' lots. Wyalusing expanded into the precut housing market when it acquired Fairmont Company, o

    Accounting errors

    Rensing Company's December 31 year-end financial statements contained the following errors: Dec 31 2007 Dec 31 2008 Ending inventory $7,500 understated $11,000 overstated Depreciation Expense $2,000 understated An insurance premium of $18,000 was prepaid in 2007 cov

    E6-5 Segregation of Duties

    The following task are perfrmed by three employees, each of whom is capable of performing all of the tasks. Do not concern yourself with the time required to perform the tasks, but with the need to provide for segregation of duties. Assign the duties by using a check mark to indicate which employee should prform each task. Remem

    Net pay/ vacation pay

    27. The following totals for the month of June were taken from the payroll register of ABC Company: Salaries expense $13,000 Social security and Medicare Taxes withheld 975 Income Taxes withheld 2,600 Retirement Savings 500 The entry to record the payment of net pay would include a ________. debit to Salaries P

    Income tax liability: replacement property in a sale of land

    You have a client who is in possession of 1,000 acres of farm ground. The farm ground was purchased 10 years ago for $160,000, and is now worth $2,000,000. The client wishes to sell the farm ground and purchase an apartment building of approximately equal value to his farm ground. How would you suggest your client obtain the r

    11. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2005, balance in the Uncollectible Accounts Expense would be ________.

    11. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sal

    Uses the direct write-off method of accounting for uncollectible

    9. The LMN Co. uses the direct write-off method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be as follows: ________. debit Allowance for Doubtful Accounts; credit Accounts Receivable debit Sales Returns and Allowan

    How are layaway cash amounts recorded?

    "I don't believe my company records unearned income in their balance sheet. We are a retail company, and, although we have layaway, most of our sales are immediate cash for product transactions. Layaways are still counted as part of our inventory until they are paid in full. So, again, I would think my company does not record un

    Marginal Utility Role when Purchasing Items

    Think about purchasing an item you already own, another TV or pair of shoes, for example. Describe the item and your decision to purchase it. Then indicate the role marginal utility would play in your decision to buy that additional item. (If you say "it played no role," you haven't learned what marginal utility means!)

    Busy Pig Company Two Products

    Busy Pig company produces two products. Absorption costing for the products look like this: Product A Product B Direct materials 6000 40 000 Direct wages 10 000 20 000 Indirec

    Portfolio Returns

    Problem: Rate of Return if State Occurs State of Economy Probability of State of Econ Stock A Stock B Stock C Boom 0.30 0.30 0.45 0.33 Good

    Economies of scale Develop a list of variables that may affect economies of scale (taxes, rent, overhead costs, quantity discounts on ordering from suppliers, efficiency of production, etc.) and describe with real life examples of how these factors may affect the price of each unit, and how a firm may incorporate these concepts to take advantage of economies of scale. of economies of scale.

    Economies of scale Develop a list of variables that may affect economies of scale (taxes, rent, overhead costs, quantity discounts on ordering from suppliers, efficiency of production, etc.) and describe with real life examples of how these factors may affect the price of each unit, and how a firm may incorporate these concep

    Distribution of proceeds among partners

    After realization of a portion of the non cash assets of Bemis, Coppo & Dipp LLP, which was being liquidated, the capital balances were Bemis, 54,600; Coppo, 40,500; and Dipp, 17,000. Cash of 34,100 and other assets with a carrying amount of 98,000 were on hand. Creditors' claims totaled 20,000. Bemis, Coppo, and Dipp share net

    ROI and operating income

    Suppose that I have an operating income of 90,000 and net assets with a fair market value of 300,000. Another company pays 450,000 for my net assets and business activities. How do I: 1. Calculate the ROI for Company A. based on its present operating income and the fair market value of its net assets? and, 2. How do I

    Bad Debt question

    Hi! I need help calculating the net realizable value of A/R at 12/31/09, as well as preparing a balance sheet for the company. Current assets section of balance sheet for Company B: A/R - $63,000 Less: Allowance for bad debts - (9,000) $54,000 The company's accounting records revealed the following information fo

    Accounting for Bad Debts issue

    Here's the question: as of January 2009, the balance in Company A's Allowance for Bad Debts account was 9,720. During the year, a total of 23,900 of delinquent receivables was written off as bad debt. The balance in the Allowance for Bad Debt account at December 31, 2009 was 10,480. a. What was the total amount of bad debts

    Job costing-vs-process costing,manufacturing overhead rate

    1.Describe job-costing and process-costing systems. Explain when it would be appropriate to use each. 2.In a job-costing system, explain why it is necessary to apply indirect costs to production through the use of a manufacturing overhead cost allocation rate.

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