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    Partnership Basis in Land

    Betty's basis in her partnership interest is $90,000 and she receives distributions of $35,000 cash and inventory (basis to the partnership of $22,000 and a fair market value of $28,000). No land is distributed. (A) How much gain or loss, if any, must Betty recognize as a result of the distribution. (B) What basis will Betty

    Variance Analysis for Materials and Labour Costs

    Based on the following: Direct materials: Standard price per pound: $9 Actual price per pound: $8 Price variance: $20,000 F Total of direct-material variances: $2,000 F Direct labor: Actual hours worked: 40,000 Actual rate per hour: $15 Efficiency variance: $28,000 F

    Net realizable value method

    Here, two or more units of the software are sold as a single package. Managers at Software For You are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows: Stand-Alone Selling Price

    Contribution Margin

    Aromatic Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the U.S. market. The following information is provided for March:

    Operating Income and Transfer Price

    The Mill Flow Company has two divisions. The Cutting Division prepares timber at its sawmills. The Assembly Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 20x3. During the year, the Cutting Division prepared 60,000 cords of wood at a cos

    ROI Analysis for Mikey Co.

    Mikey Co. group managers are evaluated annually with bonuses awarded based on ROI. In the previous fiscal year, Mikey produced 12% return on investments. This year Mikey is considering an investment that will assist in future growth in the Cooper group. Relevant data is as follows: Cooper


    ABC Company has developed the following standard costs for its product Product 1 cost element:Standard Quantity x Standard Price = Unit Standard Cost Direct Materials 3 pounds x $2 = $6 Direct Labor 2 hours x $8 = $16 Manufacturing Overhead2 hours x $4 = $8 Total = $30 ABC Company expected to produce 20,000 units of

    Full accounting for one month operation

    Sally Brown has decided to go to business for herself by running the company Tapes 4 You. Tape 4 You will rent tapes, DVDs, VCRs, and DVD players. In addition, it will also rent video games and the necessary machinery. Finally, a small amount of inventory will be kept on hand of VCRs and DVD players for sale. The following trans

    Rate of return on gross book value

    The asset section of the January 1, 20X9, balance sheet of Junction Company has only one machine (and nothing else) which was acquired on January 1, 20X5. The machine's original cost was $500,000, and the estimated life was determined to be 10 years. The estimated residual value was zero, and the straight-line method of deprecia

    Variable and Fixed Costs

    Express Company has the capacity to produce 100,000 juicers per month. They are currently producing and selling 80,000 juicers. The cost of producing 80,000 juicers is $1,200,000 (800,000 variable and $400,000 fixed). The juicers are normally sold directly to retailers at @ $25 each. Express has an offer from Apple Company (fo

    Processing Decision Split-Off Point

    Express Company incurs $200,000 of joint product costs to produce three plant growth products: 40,000 pounds of GrowK; 35,000 of GrowL; and 25,000 of GrowG. The 3 products can be sold at split-off or processed further into GrowK Super, GrowL Super and GrowG Super. Determine which products should be sold at split off point and wh

    Accounting Information System

    1. If AIS (Accounting Information Systems) are so vital to business success, why do so many businesses have problems in this area? 2. What opportunities has the advent of business use of the Internet created for AIS development? 3. Do external individuals who interact with the organization have a right to know what infor

    Tax Impact by Investing in My Company's 401K

    I want to start contributing into my employer's 401(k) plan to save money for retirement. I'm interested in knowing how much I can save on my income taxes by contributing to the plan. I can invest up to 7% of my income into the plan. My current income is US$45,000 per year, and I am in the 15% tax bracket. I'd like a spreads

    Finance-Related Multiple Choice Problems

    Please help with the following problems. A) Why do annual reports include more than 1 year of the balance sheet and statements of income and cash flows? Is it... 1) SEC requires only 1 year's data or... 2) Financial statements for only 1 year would have no reference point for indicating changes in a company's fin

    Accounting Operation Costs

    Problem 1 Muscle Beach Current Operating Data MegeMuscle PowerGym ProForce Selling price per unit $140 $200 $290 Contribution margin per unit 42 77 58 Monthly sales volume-units 3,000 2,000 1,000 Fixed expenses per month Total of $320,000 a. Calculate the contribution margin ratio of each product b. Calculate t

    Accounting Depreciation and fixed assets

    Monumental Products Corp. had recently purchased a new machinery at a cost of $450,000. Management estimates that the equipment will have a useful life of 15 years and no salvage value at the end of the period. If the straight-line depreciation method is used for financial reporting, calculate the following: A) Annual dep

    Tax Saving Strategy

    1. Allan and Sarah are not married. Sarah has a low income but Allan has a high income. a. How might a loan from Sarah to Allan be advantageous to them? b. How might it be advantageous for Allan to rent something from Sarah? 2. Allan and Sarah are married. Allan passes away and Sarah is the sole beneficiary of Allan'

    Describe the operating cycle and the cash cycle.

    Describe the operating cycle and the cash cycle. What are the differences between them? When you analyze a company's financial health, what kind of ratios would you review? (please list top 3 financial ratios you would consider the most important and which would provide you with a clear idea on the financial status of the co

    Calculating expected return & standard deviation of a portfolio

    Suppose the expected returns and standard deviations of stocks A and B are E(Ra) =0.15, E(Rb) = 0.25, Stdev A = 0.1, and Stdev B = 0.2, respectively. Calculate the expected return and standard deviation of a portfolio that is composed of 40% A and 60% B when the correlation between the returns on A and B is 0.5.

    Warranty Expenses

    Cannon Bly is a sales manager for an automobile dealership. He earns a bonus each year based on revenue for the number of autos sold in the year less related warranty expenses. Actual warranty expenses have varied over the prior 10 years from a low of 3% of an automobile's selling price to a high of 10%. In the past, Bly has ten

    Debits and credits plus normal balance for accounts

    BE2-1 For each of the following accounts indicate (a) the effect of a debit or a credit on the account and (b) the normal balance. 1. Accounts Payable. 2. Advertising Expense. 3. Service Revenue. 4. Accounts Receivable. 5. Common Stock. 6. Dividends.

    Financial Comparison Between Google and Yahoo

    In terms of Google and Yahooo: Estimate the five operating expenses for each of the past three fiscal years, and evaluate what operating leverage, if any, was applied each year. Explain the functions of intermediaries and financial regulatory bodies with the company.

    Accounting Equation

    Compute the missing amounts for companies A, B, and C. A B C Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$45,000 $ 4,500 $18,000 Accounts receivable . . . . . . . . . . . . . . . . . . . .10,000 10,000 14,000 Land and buildings . . . . . . . . . . . . . . . . . .

    identified data for a typical month

    An ABC team at Drug's 'R' US, a pharmaceutical company, identified these data for a typical month (Please see attachment) Please disregard requirements in attachment instead please use the following requirements thank you: You will be calculating unit costs for products A and B using both traditional and activity-based cos

    Tax Problem

    HOPE Scholarship Credit and Lifetime Learning Credit. John and Mary, a married couple who file a joint return, have two dependent children in college, Jeff and Brooke. Jeff attends Pepper College, a private, liberal arts college, and Brooke attends State U. During the calendar year 2006, Jeff was a sophomore during the Spring

    Insurance Policy Value

    A well-known insurance company offers a policy for children. Typically, a parent or grandparent buys a policy for a child at the child's birth. the details of the policy are as follows. The purchaser makes the following six payments to the insurance company: 1st birthday: $750 2nd birthday: $750 3rd birthday: $750 4th birt

    Investment for Pension Liability

    A firm has an estimated pension liability of $1.5 million due 27 years from today. If the firm can invest in a risk-free security with an interest rate of 8%, how much must the firm invest today to be able to make the $1.5 million payment? (Must use Microsoft Excel)

    Profit amount after a year of investing

    Using Microsoft Excel, calculate the total amount you will receive in a year if you invest $1,000 now (assuming the interest rate is 8% per annum) at: a. yearly compounding b. semiannually compounding c. quarterly compounding d. daily compounding