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    Estate Taxes and Unified Credit Problem

    1. Mr.Trevor expects to accumulate assets valued at $3 million during his lifetime and wishes to leave his estate to his six children. Based on family history, he expects to live until 2040 at age 75. a. So that his estate will pay zero estate tax after the unified credit, at what age will Mr. Trevor need to begin making annua

    Accounting problems for National Industries, Inc.

    The most recently published statement of consolidated earnings of National Industries, Inc., appears as follows: NATIONAL INDUSTRIES, INC. Statement of Consolidated Earnings For the Year Ended March 31, 2004 Net Sales $38,041,200 Other revenue

    Finding g (expected growth) & EPS

    Sidman's products' stock is currently selling for $60 per share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $3.60. a. If investors require a 9 percent return what rate of growth must be expected for Sidman? b. If Sidman reinvests earnings in projects with an average return eq

    Types of Businesses Where Cash Basis is Preferred

    Although many business entities either prefer or are required to use the accrual method of accounting, there are certain businesses where cash basis works best. Give four examples when cash basis is an appropriate method of accounting.

    Prepare retained earnings statement

    Financial statement information about four different companies is as follows. Karma Molly McCain Bodie Company Company Company Company January 1, 2006 Assets $ 89,000 $110,000 (g) $170,000 Liabilities

    Gross Profit Method

    P9-4) Gross Profit Method: David Hasselholf Company lost most of its inventory in a fire in December just before the year end physical inventory was taken. Corporate records disclose the following. Inventory ......................80000 Purchases.....................280000 Purchases return..............28000

    Net cash flow

    Jim Bo's currently has annual cash revenues of $240,000 and annual operating expenses of $185,000 including $35,000 in depreciation. The firm's marginal tax rate is 40 percent. A new cutting machine can be purchased for $120,000 that will increase revenues by $50,000 per year while operating expenses would increase to $205,000,

    Accounting Information System

    Need help with answering the following two questions: 1) What are the security concerns with wireless and microwave technology? 2) Is a cashless society possible? Practical? Desirable? Please explain in detail.

    Job and Process Cost Accounting Systems

    Our cost per jet in terms of materials is 1.00 per and the labor is .50. Our total annual overhead is estimated to be $20000 and our overhead seems to be related to the number of jets we produce. Can you work me up the total costs for our order of 70 jets? Which system is a better choice between a job or a process cost accou

    Compute how much a new car can cost based on income constraints.

    You have finally decided that this is the year that you purchase that exotic car (Aston Martin Vanquish (007's car), Porsche Carrerra GT, Bentley Continental etc...etc.). But your spouse (Salma Hayak or Brad Pitt depending on who you are) insists that you must decide on the maximum purchase price you can afford before you ever

    Tax Planning Scenarios for a Like Kind Exchange

    Mr. Tucker owns investment land (690,000 fmv and $228,000 adjusted basis) that he is interested in selling. Several prospective purchasers have offered to pay cash, but Mr. Tucker wants to avoid recognizing his entire gain in the year of sale. Accordingly, he is considering selling the land to the Tucker Family Corporation in re

    Accounting Problems

    Calculate the total dividends and the per-share dividends declared on each class of stock for each of the six years. Calculate the average annual dividend per share for each class of stock for the six-year period. Assuming that the preferred stock was sold at par and common stock was sold at $8 at the beginning of the six

    Substance over form and tax planning

    1. What does substance over form mean? How would this doctrine be applied in a tax controversy? 2. For most businesses, does the time and money spent in tax planning pass the cost vs. benefit test? In other words, how valuable is tax planning? Can you think of an example of planning for a small business in the formation stage

    Tax Accounting Problems

    1) IRS 351- Simultaneous transfers Albert Able, Brenda Baker, Carla Cox, and Dan Davis are all shareholders of Corporation A. Corporation A has 100 shares if capital stock outstanding. Able, Baker, and Cox each transferred property on February 11, 20*4 and each received 25 shares of capital stock. Dan Davis transferred proper

    Aumont Company: Entries for Bond Transactions

    On January 1, 2007, Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907.37, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2007, and mature January 1, 2012, with interest payable December 31 of each year. Aumont Company allocates interest and unamortized discount or pre

    Contra Account: Definition and Use

    What is a contra account? Where are they used in the accounting information system? Why do they appear in financial statement presentations?

    Questions From an Accounting Information System

    The AIS is a system of collecting and processing transaction data and disseminating financial information to interested parties. Systems vary for different types of business, different sizes of businesses and for the information demands from management or investors. What kind of questions can a good accounting system answer f

    Accounting: Inventory Cost, Stock Value, and Cost of Goods

    Problem: (1)-P9-9-(Statement and Note Disclosure, LCM, and Purchase commitment) Garth Brooks Specially Company, a division of Fresh Horses Inc., manufactures three models of gearshift components for bicycles that are sold to bicycle manufactures, retailers, and catalog outlets. Since beginning operations in 1975, Brooks has

    Price Variance

    Can you help me with this assignment? Standard cost systems can have motivational effects; some are desirable, some are not. Consider the following situation: The materials purchasing manager is paid a salary plus a bonus based on the net favorable materials price variance. Generally, this bonus amounts to 30 - 40% of th

    Production cost report

    The Welding Department of Hirohama Manufacturing Company has the following production and manufacturing cost data for February 2005. All materials are added at the beginning of the process. Hirohama uses the FIFO method to calculate equivalent units. Manufacturing Costs Beginning work in process $32,175 Costs

    Personnel Costs and Cost-Driver Relations

    Unsafe Insurance Company needs to forecast its personnel department costs. The following output was obtained from a regression program used to estimate the department's costs as a function of the number of employees: see attached file for data. Monthly data for the past two years were used to construct these estimates. Cost

    Accounting Multiple Choice Questions

    21. Which of the following would most likely increase when the activity level increases, within the relevant range? A) Total fixed costs. B) Per unit fixed costs. C) Total variable costs. D) Per unit variable costs. 22. In the cost equation TC = F + VX, F is best described as the: A) slope of the equation. B) act

    Discontinue Warranty Evaluation

    Chicago Electronics offers a six-month warranty on the products it sells. It estimates the warranty expense will be 3 percent of sales. One of the company managers wondered how the warranty affects the company's profit. The income statement for the most recent year was: (Attached) The manager estimates that if the company di

    Fixed Costs

    Can you explain the justification for allocation of fixed costs to constructed assets versus the justification for applying no fixed costs.

    Accounting/Tax Questions

    A.) Dorothy acquired passive Activity A in January 2001 and Activity B in September 2002. Through 2004, Activity A was profitable, but it produced losses of $200,000 in 2005 and $100,000 in 2006. Dorothy has passive income from Activity B of $20,000 in 2005 and $40,000 in 2006. After offsetting passive income, how much of the ne

    Spence Soup Co. - Accounting Transactions

    Spence Soup Co. uses a process cost system to record the costs of processing soup, which requires a series of three processes. The inventory of Work in Progress?Filling on July 1 and debits to the account during July 2006 were as follows: Bal., 1,800 units, 1/3 completed: Direct materials (1,800 * $4.72)

    Rebecca Company, Piccola Company, Guard Company, Ernesto

    E. Chapter 5: Exercise E5-4 Journalize sales transactions. Presented below are transactions related to Rebecca Company. 1. On December 3, Rebecca Company sold $480,000 of merchandise to Simonis Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000. 2. On December 8, Simonis Co. was gran