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    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.)


    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

    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

    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?

    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

    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