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# Accounting

### Real Estate/ Potential Gross Income

Given the following information, what is the potential gross income? Property: 4 office units Contract Rents per unit: \$2500 per month Vacancy and collection losses: 15% Operating expenses: 35% CAPEX: 10%

### Effective Gross Income (Real Estate)

Given the following information, what is the effective gross income? Property: 4 office units Contract rents per unit: \$2500 per month Vacancy and collection losses: 15% Operating expenses: 35% CAPEX: 10%

### Tax return preparation: where are refunded fees deducted?

Bill and Ann are unrelated taxpayers. Both had their taxes prepared last year by the same tax preparer. Bill paid \$300 for his tax return preparation while Ann paid \$500 for hers. Bill is an employee (receives a Form W-2) while Ann is self-employed (files Form Schedule C). Two years later, as a result of an agreement with state

### Monthly Investments

Suppose that you wish to send your daughter to a private, four-year college. She will not enter college for another fifteen years and the current annual cost is \$25,000. Assuming that this annual expense will grow at 5.6% each year and that your annual return on any investment will earn 7.5% per year. You currently have nothi

### Annual Before Tax Cash Flow

Question: Richard Corporation's new project calls for an investment of \$10,000. It has an estimated life of 10 years. The IRR has been calculated to be 15%. If cash flows are evenly distributed and the tax rate is 40%, what is the annual before tax cash flow each year? (Assume depreciation is a negligible amount.)

### Your aunt would like to minimize the tax on investment income. What could she do?

Your aunt is in a high tax bracket and would like to minimize the tax burden of her investment portfolio. She is willing to buy and sell in order to maximize her after-tax return and she has asked for your advice. What would you suggest that she do?

### Variances

Alberta Apparel Company, located in Calgary, uses a standard-costing system. The firm estimates that it will operate its manufacturing facilities at 800,000 machine hours for the year. The estimate for total budgeted overhead is \$2,000,000. The standard variable-overhead rate is estimated to be \$2 per machine hour or \$6 per unit

### Martin Manufacturing: evaluate liquidity, activity, debt, profitability, and market

CHAPTER 2 Assessing Martin Manufacturing's CASE Current Financial Position. I need help with question(b). b. Analyze the firm's current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, and market.

### Reasonable salary and bonus income of a sole shareholder of Camel Corp

Camel is the sole shareholder of Desert, Inc. Desert's taxable income before the payment of Camel's salary is \$175,000. Based on this, Camel has the corporation pay him a salary of \$100,000 and a bonus of \$75,000. A reasonable salary and bonus would be \$125,000. Which of the following is correct? a. The taxable income of

### Ordinary, long-term and short-term capital gain and loss

During 2002, Parrot Corporation incurs the following transactions. Net income from operations \$154,000 Long-term capital gain from sale of securities 66,000 Short-term capital loss from sale of securities 46,000 Parrot maintains a valid S election and does not distribute any dividends to its sole shareholder, Jami

### Tax Accounting: Tax Treatment of Shareholders and IRS Rules for Partnerships

1. What are the major advantages of bona fide loans from shareholders and other debt instruments over stock? 2. What conditions need to be met to avoid IRS classification of loans from shareholders as equity (contributions to capital)? 3. What is the tax treatment of losses from worthless stock or securities? 4. What is th

### Matching Exercise for audit terminology

Please see attached file. PART II ? MATCHING Instructions: Designate the terminology that best represents the definition or statement given below by placing the identifying letter(s) in the space provided. No letter should be used more than once. Not all letters will be used. A. Full disclosure principle B. Internal

### Accounting for Depreciation Problem

You are asked to make a depreciation schedule for a business asset.. A depreciation schedule shows the remaining value of the asset at the end of each time period. A. a \$1,200 postage printing system depreciated using the straight -line method over 4 years. In your depreciation schedule, give the following information for ea

### Biometrics and Digital Cash

Much debate surrounds the use of biometrics. Many people like it because biometrics can provide identification and increase security. Other people see it as a tremendous invasion of your privacy. Just as you read in this chapter, a bank¿by using biometric identification¿may be able to tell if a woman is pregnant. So, the great

### Microsoft Powerpoint 2007

Please see the attached file for instructions.

### Federal Taxation and Gross Income Exclusions - Multiple Choice

Teresa sued her former employer for age, rage and gender discrimination. She claimed \$250,000 in damages for loss of income and \$500,000 in punitive damages. She settled the claim for \$600,000. As a result of the settlement Teresa must include in gross income: a. 0\$ b. \$400,000 [\$500,000/(\$250,000 + \$500,000) x \$600,000

### Wilma and Barney's tax transactions for the boat and the divorce

Wilma divorced Barney last year. This year she received the title to their boat that cost \$45,000 and is now worth \$55,000. Barney paid Wilma \$1,500 per month, \$500 for alimony and \$1,000 for support of their two children. Wilma owed \$60,000 to the bank for a loan on a failed business. To satisfy the debt, she transferred title

### Calculation of Tax Liabilities

John and Joanna have \$125,000 in combined salary and wages, \$8,000 in dividend income, and \$3,000 in interest income. What is their tax liability for 2007 if they are married filing jointly, have \$35,000 in itemized deductions, and claim no dependency exemptions?

### Financial Accounting: Bank reconciliation and entries for Agricultual Genetics Co

Please see attached file. c. Chapter 8: Problem P8-3A - Agricultural Genetics Company of Lawrence, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2006, the company's cash account per its general ledger showed the following balance. Cash No. 101 Date Explanation Ref.

### Accounting Exercises: Clearwater, Piccola, E. Guard, Gilberto, Rebecca, Ernesto's

Please see attached. a. Chapter 5: Brief Exercise BE5-1 Presented below are the components in Clearwater Company's Income Statement. Determine the missing amounts. Cost Of Goods Gross Operating Net Sales Sold Profit Expenses Income (a) \$75,000 ? \$28,600 ? \$10,800 (b) \$108,000 \$70,000 ? ? \$2

What are the advantages and disadvantages of the various business forms? What impact does the form of a business have on its profitability and the availability of funds?

### Pharout Company variances for Product P521; standard materials for P13

1. Pharout Company uses a standard cost system. Job 822 is for the manufacturing of 500 units of the product P521. The company's standards for one unit of product P521 are as follows: Quantity Price Direct material 5 ounces \$2 per ounce Direct labor 2 hours \$10 per h

### Compute Segment Margins for Paragon; ROI for FX Corporation

12-56 Following is the information on Paragon Company's three product lines: Product Line 1 2 3 Revenue \$7,160,000 1,900,000 4,200,000 Variable cost percentage of sales

### Accounting for Santos Services, Shelly Co, Reethink Enterprises, Rutwing Enterprises

Please see attached. PART I ? WORK SHEET COMPLETION Instructions: Complete the partial work sheet presented below, inserting additional labels as needed. SANTOS SERVICES AGENCY Partial Work Sheet For the Month Ended September 30, 2005 ?????????????????????????????????????????? Adjusted Income Balance Trial Balance

### Number of Period Calculation

Suppose that you have a credit card debt balance of \$5,000.00. The card charges 13.99% interest (compounded monthly) and you are going to make monthly payments of \$100.00 to pay down the debt and you will not make any more charges on the card. Assuming that you are not late in your payments and not other fees or charges are

### Incremental Analysis for a make or buy decision

Please see the attached excel spreadsheet that includes one worksheet with the problem to resolve, one worksheet with an example of what the problem should be formated or resemble and one worksheet to use for the answer. Please show the calculations. The management of Martinez Manufacturing Company has asked for your assis

### Identify factors affecting variability in EPS, dividends, and market price per share

Required: Identify factors affecting variability in earnings per share, dividends per share, and market price per share that derive from a. The company b. The economy

### Missing Amounts Financial Statement

Petson Company's financial information is presented below: Sales ???? Sales Returns and Allowances \$30,000 Net Sales \$250,000 Beginning Merchandise Inventory ???? Purchases \$170,000 Purchase Returns and Allowances \$ 15,000 Ending Merchandise I

### Auditor's report

An auditor is reporting on an examination of a forecast included in the registration statement for a new issue of securities. The auditor has considered all the key assumptions entering into the forecast, and has concluded that the assumptions developed by management are suitably supported and consistent with the plans of the cl

### Multiple-step Income, Retained Earnings

(Multiple-step Income, Retained Earnings) Presented blow is information related to American Horse Company for 2007 Retained earnings balance, January 1, 2007 \$980,000 Sales for the year \$25,000,000 Cost of goods sold \$17,000,000 Interest revenue