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    Federal taxation and adjustments -- multiple choice

    1. Amos sells his principal residence, which has an adjusted basis of $100,000 for $150,000. He incurs selling expenses and legal fees of $6,000. He had purchased another residence one month prior to the sale for $140,000. What is the recognized gain or loss and the basis of the replacement residence if the taxpayer elects to

    Replacement

    A manufacturing company recently considered replacing one of its forming machines with a newer, faster, more accurate model. What cash flows would this decisions be likely to affect? List both cash flows that would be easy to quantify and those for which measurement would be difficult.

    Retirement Account Savings

    Your brother, Eric, has asked your advice on creating a retirement plan. He is 35 years old, earns US$55,000 per year with average raises of 4% per year, and plans to work until the age of 65. His company offers a 401(k) plan with matching contributions of up to 8% of his income that has been earning an average of 10% per year.

    What is an asset? What is a liability?

    5. What is an asset? What is a liability? 6. What is the difference between assets and liabilities? 7. Can an organization operate without current liabilities? Explain.

    Mustang Company

    See attached file. Question 16 Mustang Company has the following data: The average mark-up on products is 40%, and the inventory at the end of December was $19,000. Desired inventory levels are 30% of next month's sales at cost. ________ is the desired ending inventory for April. $25,920 $17,2

    Computation of Taxable Income and Journal Entries

    Problem 1 Computation of taxable income. The records for Orkin Co. show this data for 2008: ? Gross profit on installment sales recorded on the books was $360,000. Gross profit from collections of installment receivables was $270,000. ? Life insurance on officers was $3,800. ? Machinery was acquired in January for $300

    Accounting: Multiple Choice Questions

    101. Nancy had an accident while skiing on vacation. She sustained facial injuries that required cosmetic surgery. While having the surgery done to restore her appearance, she had additional surgery done to reshape her nose, which was not injured in the accident. The surgery to restore her appearance cost $12,000 and the surgery

    Working Paper Using the Equity Method of Accounting

    Started the problem but I am having trouble with it and I do not know if the work I did is correct or not. I need to review this problem for my final. See Attached File Modern Advanced Accounting Publisher: McGraw-Hill/Irwin; 10 edition ISBN-10: 0073211591

    Total cash receipts

    A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. The firm makes 10% of its sales for cash, collects 40% of its sales one month following the sale, and collects the balance two months following the sale. The firm's total expected cash receipts in Janua

    Accounting Software Memo: factors to consider when choosing software

    Your department's accounting software is extremely outdated, and you have included the purchase of new software in this year's fiscal budget. You have decided it is time to start looking into purchasing your company's accounting software and have chosen someone in your department to undertake the task. You want to draft a memo f

    Accounting for long-term receivables: Romanace Ltd.

    On July 31, 2010 Romanace Ltd. (Romanace) agreed to sell Youbou Inc. (Youbou) $4,500,000 of specialized equipment for use at its newly developed mine site in northern Manitoba. Because the mine had not yet begun to produce any metal, Youbou negotiated that it would pay for the equipment on August 6, 2012, at which time the mine

    Accounting: Calculating non-value added costs

    I need some help with this question: During a recent accounting period, Mark's shipping department processed 19 orders. Each order typically takes 4 hours to complete; however the average time increased to 5 hours because of various departmental inefficiencies. If shipping labor is paid $15 per hour, the company's non-value a

    Cost of wages & salaries and other overhead

    ABC Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering same to its commercial accounts. Company personnel who earn $200,000 typically perform both tasks; other firm-wide overhead is expected to total $80,000. These costs are allocated as follows: Pro

    Predetermined Fixed Overhead Rate

    A manufacturer of playground equipment has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 8,800 MHs Fixed overhead cost $72,248 The following data pertain to oper

    Predetermined overhead rate calculated

    Question 19: (1 point) Billa Corporation's abbreviated flexible budget for two levels of activity appears below: Cost Formula (per machine-hour) Activity (in machine-hours) 4,590 4,690 Total variable overhead cost $11.5 $ 52,785 $ 53,935 Total fixed overhead cost 347,800 347,800 Total overhead cost $400,585 $4

    Predetermined overhead rate 11-18

    Question 18: (1 point) Bakos Corporation's abbreviated flexible budget for two levels of activity appears below: Cost Formula (per machine-hour) Activity (in machine-hours) 2,900 3,000 Total variable overhead cost $8.7 $ 25,230 $ 26,100 Total fixed overhead cost 102,100 102,100 Total overhead cost $127

    Predetermined overhead rate flexible budgets

    Question 17: (1 point) Keeran Corporation's flexible budget for two levels of activity appears below: Cost Formula (per machine-hour) Activity (in machine-hours) 6,000 6,100 Variable overhead costs: Lubricants $3.4 $ 20,400 $ 20,740 Power 1 6,000 6,100 Total variable overhead cost $4.4 26,400 26,840

    Calculating the Fixed Overhead Cost

    Question: A manufacturer of playground equipment has a standard costing system based on standard machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 8,800 MHs Fixed overhead cost $72,248 The following data pe

    Standard hours allowed 11-10

    Question 10: (1 point) Blue Company's standards call for 2,398 direct labor-hours to produce 1,090 units. During May only 970 units were produced and the company worked 2,278 direct labor-hours. The standard hours allowed for May production would be: 2,334 hours 2,534 hours 1,984 hours 2,134 hours

    Variable Overhead Efficiency Variance for Supplies

    Question: Geschke Corporation, which produces commercial safes, has provided the following data: Budgeted production 7,800 safes Standard machine-hours per safe 8.9 machine-hours Standard supplies cost $1.3 per machine-hour Actual production 8,700 safes Actual machine-hours 79,300 machine-hours Actual supplies cost

    Keeran Corporation's flexible budget

    Question 7: (1 point) Keeran Corporation's flexible budget for two levels of activity appears below: Cost Formula (per machine-hour) Activity (in machine-hours) 5,200 5,300 Variable overhead costs: Lubricants $3.3 $ 17,160 $17,490 Power 1.8 9,360 9,540 Total variable overhead cost $5.1 26,520 27,030 Fixe

    Variable overhead spending variance - Dagle Corporation

    Question 1: Dagle Corporation has provided the following data for a recent month: Budgeted production 4,700 motors Actual production 5,100 motors Standard machine-hours per motor 6 machine-hours Budgeted machine-hours (6 × 4,700) 28,200 machine-hours Standard machine-hours allowed for the actual output (6 × 5,100

    Robert and Susan (both 39) are married & have 2 children

    Integrative Problem Robert and Susan (both 39) are married & have 2 children. Their son Dylan is 8 and daughter, Harper is 3. Susan sells pharmaceuticals for the Bendingo drug Co. Robert is a teacher at a local junior high school. In the summer, he earns extra money as a self-employed house painter. Their income from their jo

    Tax Considerations and Franchise Payments

    Freys, Inc., sells a 12-year franchise to Reynaldo. The franchise contains many restrictions on how Reynaldo may operate his store. For instance, Reynaldo cannot use less than Grade 10 Idaho potatoes, must fry the potatoes at a constant 410 degrees, dress store personnel in Freys-approved uniforms, and have a Frey's sign that me

    Personal Action Plan PowerPoint

    Think about what you would like your life to look like 5 years from now, personally and professionally. Create a PowerPoint presentation of your vision that the "Future You" can give to the "Present You" Continue by describing what your life will consist of and how it differs from your life today. Describe your life as a s

    The Nature of the Gain or Loss from the Magenta Sale

    Magenta, Inc., purchases used equipment at auction, refurbishes it, and then resells it at a profit. Magenta purchased a 500,000-pound metal-grinding machine for $1.8 million, spent $600,000 refurbishing it over two years, and then sold it for $4 million. What is the nature of the gain or loss from this transaction?

    Taxpayer exchanges a business use machine with an adjusted basis of $22,000 and a fair market value of $30,000 for another business use machine with a fair market value of $28,000 and $2,000 cash.

    Taxpayer exchanges a business use machine with an adjusted basis of $22,000 and a fair market value of $30,000 for another business use machine with a fair market value of $28,000 and $2,000 cash. What is the taxpayer's recognized gain? a. $0. b. $2,000. c. $6,000. d. $8,000. e. None of the above. Taxpayer exchanges a

    Calculate amount and type of gain for sales of antique cars

    During the year, Eric had the four property transactions summarized below. Eric is a collector of antique automobiles and occasionally sells one to get funds to buy another. What are the amount and nature of the gain or loss from each of these transactions? Property Date Acquired Date Sold Adjusted Basis Sale Price Antiqu

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