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    Taxable Business Income

    Joe operates a business that locates and purchases specialized assets for clients, among other activities. Joe uses the accrual method of accounting but he doesn't keep any significant inventories of the specialized assets that he sells. Joe reported the following financial information for his business activities during year 0.

    Adjusted Gross Income

    Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer parts store. For the first two months of the year, Alyssa worked for Staples, Inc., as an employee. In March, Alyssa a

    Determining Risk of Stocks

    Stock: Std. Dev. Beta ABC 12.5% 1.0 FGH 8.0% 0.5 MNO 20.2% 2.4 TUV 15.3% 3.0 1. a. According to the information listed above, which of the stocks would be considered riskiest by itself (2 pts.)? b. Which one would be the riskiest in a diversified portfolio of investments (2 pts.)? 2. Stoc

    A real world problem with fractions

    Using the internet, find a real world example where fractions were used to solve a problem. Explain what the real world problem is, what the fractions mean in the problem and explain how the problem was solved. In addition, be sure to explain what the solution is to the problem as well.

    Direct Change Based on Accounting

    Tutoring: Trimble Company sells an electronic toy for $40. The variable cost is $24 per unit and the fixed cost is $32,000 per year. Management is considering the following changes: Alternative #1 Lease a new packaging machine for $4,000 per year, which will reduce variable cost by $1 per unit. Alternative #2 Incr

    AIS: Business Processes and Control

    Of all the business processes in the Accounting Information Systems (AIS), which do you think is the hardest to control and why? Be specific in your discussion of internal controls.

    What is the best means of estimating recurring income from operations?

    I understand that non-recurring items such as adjustments for changes in accounting methods, extraordinary gains/losses, income from discontinued operations, etc. must not be included. However, what items should I address? I would like to establish the estimate for a firm over a three-year period but I'm not sure where to start

    Comprehensive Annual Financial Report Briefing

    Evaluation of a Comprehensive Annual Financial Report for a government entity Prepare an overview of government accounting for a business person, using the State of Georgia as an example. Describe the entity and evaluate the Management Discussion & Analysis (MD&A) section.

    Eastman Kodak Company

    PUT ANSWERS IN EXCEL ATTACHMENT Eastman Kodak Company is a provider of imaging technology products and services to the photographic,Graphic communications, and health-care markets. A condensed 2008 income statement follows (in millions): Sales $9,416 Costs of goods sold

    Gross Profit Percentage from Property Sale with Assumption of Mortgage

    Kevin sold property with an adjusted basis of $58,000. The buyer assumed Kevin's existing mortgage of $40,000 and agreed to pay an additional $60,000 consisting of a cash down payment of $40,000, and payments of $4,000, plus interest, per year for the next 5 years. Kevin paid selling expenses totaling $2,000. What is Kevin's gro

    Recognized Gross Profit on an Installment Sale

    Kyle sold land on the installment basis for $100,000. His basis in the land was $70,000. Kyle received a $40,000 down payment and a real estate installment sale contract calling for $60,000 in additional payments in future years. In addition, Kyle paid $6,000 in commissions on the sale. What is the gross profit to be recognized

    Sec. 179 Deduction for qualifying five-year equipment

    Elaine owns an unincorporated manufacturing business. In 2011, she purchases and places in service $250,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any section 179 deduction is $70,000. Elaine takes the maximum allowable deduction under section 179. Which of the foll

    After-Tax Non-Recurring Charges

    After-tax non-recurring charges are: 1. Estimated by tax-effecting pre-tax non-recurring charges using the company's effective income tax rate 2. Excluded from normalized EPS 3. Sometimes disclosed in the footnotes of a company's financial filings 4. All of the above Please select only 1 option from the 4 list

    Calculating a firm's free cash flow (FCF)

    Hello, I understand FCF be found by the expression FCF = (NOPAT - net investment in operating capital) First, I calculated NOPAT as EBIT(1-Tax rate) Naturally, I found EBIT listed on the income statement but I calculated the tax rate by dividing the amount of tax paid by the pretax income. 248/846 = 29.31% tax rate....so

    Assumptions, Principles, and Constraints of Accounting

    Please help me explain the following concepts: - The basic assumptions of accounting - The principles of accounting - The constraints of accounting - A conclusion stating how you think sound financial reporting depends on principles, assumptions, and constraints. Refer to the U.S. GAAP in your response.

    IRC Section 351

    How many distinct steps or requirements are contained in the language of IRC Section 351 (a) for non-recognition treatment, and what are they?

    Taxation: Ownership and Income

    1.Bendetta, a high-tax-rate taxpayer, owns several rental properties and would like to shift some income to her daughter, Jenine. Bendetta instructs her tenants to send their rent checks to Jenine so Jenine can report the rental income. Will this shift the income from Bendetta to Jenine? Why, or why not? 2.Latrell recently us

    Accounting Information Systems Questions

    What important information, related to the accounting equation, is captured by accounting information systems? How does this information get translated to the financial statements? Is it necessary for the accounting information systems to record debits and credits? Why or why not? Why do some organizations continue to use

    Government and Institutional Accounting

    In your role as the financial manager, you routinely review your firm's financial statements and financial ratios to evaluate the financial health of your company. How does one review and analyze financial statements in a for-profit company? How does this compare to how financial statements are analyzed for a nonprofit orga

    The Question of Bonus Deferment

    Under the terms of his salary agreement, president Juan Rivera has an option of receiving either an immediate bonus of $40,000, or a deferred bonus of $75,000 payable in 10 years. Ignoring tax considerations, and assuming a relevant interest rate of 8%, which form of settlement should Rivera accept? Should she... - Accept Bo

    Variable Costing vs. Absorption Costing

    You are the vice president of operations for a small manufacturing company that uses the absorptive method of accounting for fixed manufacturing overhead, and you are approaching the end of the year. The accounting manager just visited some of your supervisors and said that the profitability of the company can appear better if m

    Home office deductions

    The following individuals maintained offices in their home: (1) Dr. Austin is a self-employed surgeon who performs surgery at four hospitals. He uses his home for administrative duties as he does not have an office in any of the hospitals. (2) June, who is a self-employed plumber, earns her living in her customer's homes. S

    Deduction for moving expenses

    In which of the following situations is the taxpayer not allowed a deduction for moving expenses? A. Marva moves from Dallas to Washington D.C. in her job as an IRS agent. She is still working at the IRS Washington office after one year. B. Pam moves from Phoenix to Los Angeles to take a new job. She works at the Los Angeles

    Deducting Entertainment Expenses

    Joe is a self-employed tax attorney who frequently entertains his clients at his country club. Joe's club expenses include the following: Annual dues $ 5,400 Initiation fees

    Non payment of loan

    Last year, Abby loaned Pat $10,000 as a gesture of their friendship. Although Pat had signed a note payable that contained interest payments and a maturity date, the loan had not been repaid this year when Pat died insolvent. For this year, assuming that the loan was bona fide, Abby should account for nonpayment of the loan as a

    Determining a Casualty

    Which of the following is most likely not considered a casualty? A. death of a pine tree due to a two-day infestation of pine beetles B. fire loss C. water damage caused by a broken water heater D. water damage to the walls and ceiling of a taxpayer's personal residence as the result of gradual deterioration of the roof.

    Passive activity definition

    Which of the following is not generally classified as a passive activity? A. an activity in which the taxpayer does not materially participate B. a business in which the taxpayer owns an interest and works 1,000 hours a year C. a limited partnership interest D. rental real estate