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
Gray Industries (a sole proprietorship) sold three 1231 assets during 2008. Data on these property dispositions are as follows: ASSET COST ACQUIRED DEPREC SOLD FOR SOLD ON RACK 100,000 10-10-04 70,000 75,000 10-10-08 FORKLIFT 35,000 10-16-05 23,000 5,000 10-10-08
Carmen, a single taxpayer, has $80,000 in salary, $10,000 in income from a limited partnership, and a $30,000 passive loss from a real estate rental activity in which she actively participates. Her modified adjusted gross income is $80,000. Of the $30,000 loss, Carmen may deduct: a. $0. b. $10,000. c. $25,000. d. $30,000. e
R.E.C. Inc.'s staff of accountants finished preparing the financial statements for 2007 and will meet next week with the company's CEO as well as the Director of Investor Relations and representatives from the marketing and art departments to design the current year's annual report. Write a report in which you present the mai
Ahmad is considering making a $1,000 investment in a venture which its promoter promises will generate immediate tax benefits for him. Ahmad, who normally itemizes his deductions, is in the 28% marginal tax bracket. If the investment is of a type where the taxpayer may claim either a tax credit of 25% of the amount of the expend
Leon sells his interest in a passive activity for $100,000. Determine the tax effect of the sale based on each of the following independent facts: a. Adjusted basis if this investment is $35,000. Losses from prior years that were not deductible due to the passive loss restrictions total $40,000. b. Adjusted basis in this
Ray owns a business with two separate departments. Department A produces $100,000 of income and Department B incurs a $60,000 loss. Ray participates for 550 hours in Department A and 100 hours in Department B. He has full-time employees in both departments. Which of the following statements is correct? a. If Ray elects to trea
What kind of exact corrections should be made to fix the situation at the year-end balance? and why?
Cincinnati Tool Company (CTC) manufactures a line of electric garden tool that are sold in general hardware stores. The company's controller, Will Fulton, has just received the sales forecast for the coming year for CTC's three roducts: hedge clippers, weeders, and leaf blowers. CTC has experienced comsiderable variations in s
1. How do you determine the validity of information obtained from the Internet? 2. What is the difference between validity and accuracy? 3. What is the difference between the two terms? 4. What would cause an otherwise honest student to plagiarize? 5. What advice would you give that student to avoid the situation in
Tub Co. uses a standard cost system. The following information pertains to direct labor for product B for the month of October: Actual rate paid $8.50 per hour Standard rate $7.80 per hour Standard hours allowed for actual production 1,910 hours Labor efficiency variance $1,790 unfavorable What were the actual hours worke
(Appendix) Schaper Corporation has provided the following data concerning its most important raw material, compound D30X: Standard cost, per liter $47.80 Standard quantity, liters per unit of output 8 Cost of material purchased in December, per liter $50.70 Material purchased in December, liters 3,930 Material
Santiesteban Corporation's standard wage rate is $18.00 per direct labor-hour (DLH) and according to the standards, each unit of output requires 8.8 DLHs. In March, 9,300 units were produced, the actual wage rate was $12.40 per DLH, and the actual hours were 66,300 DLHs. The Labor Efficiency Variance for March would be record
Question 10: Mayall Corporation is developing standards for its products. Each unit of output of the product requires 0.9 kilogram of a particular input. The allowance for waste and spoilage is 0.03 kilogram of this input for each unit of output. The allowance for rejects is 0.11 kilogram of this input for each unit of outpu
Question 7: Matt Company uses a standard cost system. Information for raw materials for Product RBI for the month of October follows: Standard price per pound of raw materials $1.69 Actual purchase price per pound of raw materials $1.51 Actual quantity of raw materials purchased 2,180 pounds Actual quantity of raw ma
Question 6: Schaper Corporation has provided the following data concerning its most important raw material, compound D30X: Standard cost, per liter: $55.80 Standard quantity, liters per unit of output: 4 Cost of material purchased in December, per liter: $39.70 Material purchased in December, liters: 2,650 Material used
Question 4: Persechino Corporation is developing standards for its products. One product requires an input that is purchased for $88 per kilogram from the supplier. By paying cash, the company gets a discount of 1% off this purchase price. Shipping costs from the supplier's warehouse amount to $6.21 per kilogram. Receiving c
Perry-A Company sells two products, as follows: Selling Price Variable Expense Product per Unit per Unit AAA-11 $500 $200
Variable cost for Little Lucy Pie Company is 40% of sales and the break-even point in sales is $600,000. If target net operating income is $120,000, target sales would be A) $960,000. B) $900,000. C) $840,000. D) $800,000.
When Finer Form Company sold 50,000 units of product for $10 per unit, the contribution margin ratio was 30% and net income was $120,000. What was the total fixed costs?
Given the computations for both gross profit on sales and contribution margin, what benefits come from gross profit on sales instead of contribution margin? Is net income always the same no matter what the accounting approach is? Let me give you a simple example. Look at the income statements below before you answer the ques
Widget corp. supplies widget kits retailers. Faces decision regarding purchase of kits from the manufacturer. monthly demand = 3600 units ordering costs = $25 holding cost per unit per month = $0.45 purchase price per unit = $0.85 per unit discount price = $0.82 per unit quantity needed to qualify for discount = 6000 uni
Twisto Pretzel Company disposes of under or over applied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $600,000 in a year when manufacturing overhead was overapplied by $18,000. If sales revenue totaled $1,400,000, determine gross margin.
McMann & Tate, an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor hours were estimated to be 15,000, and direct professional labor costs were projected to be $225,000. During the year, McMann & Tate incurred actual
1. Unitized Costs Suppose you are a manager in a manufacturing company. Your accountant has just presented you with a very detailed cost analysis for a decision whether to outsource or make a component of a product. You have to use this analysis in a meeting with other managers. Since the analysis is shown in totals and your
Zeke made the following donations to qualified charitable organizations during 2007: Basis Fair Market Value Used clothing (all acquired before 2006) of taxpayer and his family $ 2,350 $ 675 Stock in ABC, Inc., held as an investment for fif
Please see the attached file. 1. Make or Buy Suppose a BMW executive in Germany is trying to decide whether the company should continue to manufacture an engine component or purchase it from Frankfurt Corporation for 50 euros each. Demand for the coming year is expected to be the same as for the current year, 200,000 units.
See the attached file The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. If the company has budgeted to sell 24,000 units of Product SW in September, then the total budgeted fixed se
Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow: - Sales are budgeted at $450,000 for November, $380,000 for December, and $280,000 for January. - Collections are expected to be 87% in the month of sale, 8% in the
Question 13: Betz Company's sales budget shows the following projections for next year: Sales in units First Quarter 60,000 Second Quarter 82,000 Third Quarter 44,000 Fourth Quarter 50,000 Inventory at the beginning of the year was 20,400 units. The finished goods inventory at the end of each quarter is t