Accounting changes and error corrections: a. Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2006. Inventory values at the end of each year since the inception of the company are as follows: FIFO LIFO 2004 $200,000 $180,000 2005 400,000 360,000 Requi
On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2006, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on
1. You are given the following data; k* = real risk-free rate = 4.0% Constant inflation premium = 7.0% Maturity risk premium = 1.0% Default risk premiums for AAA bonds = 3.0% Liquidity premium for long-term = 2.0% Assume that a highly liquid market does NOT exist for long-term US Treasury bonds, and the expected
Tax issues for IRA deductions. See attached file for full problem description.
Tax deductions: moving and office in the home. See attached file for full problem description.
Tax deductions: Employee business expenses: entertainment and gifts. See attached file for full problem description.
23. Fran, who is self-employed, drove her automobile a total of 40,000 business miles in 2006. She also has receipts for business-related use as follows: Parking - $500 Fuel - 900 Tolls - 200 Fran has an AGI for the year of $50,000. If Fran uses the standard mileage rate method, she can deduct a. $17,800 b. $18,300
21. Mr. and Mrs. South's adjusted gross income was $85,000. During the year they incurred and paid the following: Publications (unreimbursed and related to employment) - $500 Tax return preparation fee - 1,000 Professional dues - 1,200 Fees for will preparation (no tax advice) - 800 Life insurance premiums - 1,400 Assu
Tax deductions: medical costs of home improvement. See attached file for full problem description.
Tax deductions: employee business expenses and cosmetic surgery. See attached file for full problem description.
Tax calculations: long and short term capital gains/losses. See attached file for full problem description.
Tax transactions: basis of assets, basis in stocks sold. See attached file for full problem description.
Below is the sales forecast for Cooper Inc. for the first four months of the coming year. Jan Feb Mar Apr Cash sales.......... $ 15,000 $ 24,000 $ 18,000 $ 14,000 Credit sales........ $100,000 $120,000 $ 90,000 $ 70,000 On average, 50% of credit sal
The budgeted amount of raw materials to be purchased is determined by: - adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule. - subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule. - ad
Butteco Corporation has provided the following cost data for last year when 100,000 units were produced and sold: Raw materials ...................................... $200,000 Direct labor .......................................... 100,000 Manufacturing overhead ....................... 200,000 Selling and ad
Stewart Company is attempting to classify costs according to their cost behavior. Data concerning activity and costs are listed below: January February Sales in units........... 1,200 1,400 Maintenance........... $ 600 $ 700 Supplies.................. 750 790 Insurance............
Accounting Problems. Classification of product cost and period cost, statement of cash flows for Millco, income statement and balance for Aron Concrete, and cash budget of Ritewell Publishers. See attached file for full problem description. Bright, Inc., a producer of educational toys for children, incurs the following
Please see attached for full problem. 1. Based on what you have learned regarding ABC costing, please help Mary prepare a revised cost report by: a. Computing the overhead rate for various activities in the spirit of ABC b. Preparing a new cost report for the three products c. In your opinion how many cost pools will be s
Brittney is a broker who works full-time for a national brokerage firm. She also maintains an office in her home for her sole proprietorship, which she uses to provide financial planning services to clients. Expenses of the business (other than home office expenses) are $3,200. Brittany's home expenses are as follows:
Milton, who is single, listed his personal residence with a realtor on March 3, 2005, at a price of $250,000. He rejected several offers in the $200,000 range during the summer. Finally, on August 16, 2005, he and the purchaser signed a contract to sell at $245,000. The sale (i.e. closing) took place on September 7, 2005. The cl
Audrey exchanges a warehouse with Dixon for an office building. Audrey's adjusted basis for her warehouse is $500,000. The FMV of Dixon's office building is $545,000. Audrey' property has a $100,000 mortgage that Dizon assumes. a. Calculate Audrey's realized and recognized gain or loss. b. What is her adjust
Wally and Gloria incur and pay medical expenses in excess of insurance reimbursements during the year as follows: For Wally $11,000 For Gloria (spouse) $4,000 For Chuck (son) $15,000 For Carter (Gloria's father) $13,000 Wally and Gloria's AGI is $200,000. They file a joint re
Five years ago, Gerald invested $150,000 in a passive activity, his sole investment venture. On January 1, 2004, his amount at risk in the activity was $30,000. His shares of the income and losses were as follows: Year Income (Loss) 2004 $(40,000) 2005 $(30,000) 2006 $50,000
Teresa calls you to discuss her latest tax planning ideas. At a cocktail party last night she was mesmerized by a discussion of like kind exchanges. She now feels that like kind exchanges will be the solution to all of her tax problems. She just "knows" she should do the following like kind exchanges this year: · Exc
Margie purchased a commercial building in January 1990 for $100,000. She also purchased equipment for $30,000 at that time and opened a business. She replaced the roof of the building in August 1995 at total cost of $20,000. She has depreciated the building and new roof using the straight-line method. The equipment has been full
Company purchased machinery for $45,000. Useful life 5 years and no salvage value. they use the sum of years digits depreciation method. Required: Annual depreciation expense and ending balance of the accumulated depreciation account for years 1 to 5.
Scoff Division of World-Wide Paint currently is losing money; therefore senior management is considering selling or closing it. Scoff's only product an intermediate chemical called Binder is used principally by the firm's Latex Division. If Scoff is sold, Latex Division can purchase ample quantities of Binder in the market at su
A road contractor has been using kilometers of road constructed as a cost driver. Based on last years costs he estimates that he can build a kilometer of road for $3 million. The county has recently asked him for an estimate to build 20 kilometers of road. Before making his bid based on his $3 million per kilometer estimate,
ROI and Residual Incomes BOATS A B C D E Revenues 5,500,000 8,300,000 10,400,000 12,800,000 20,400,000 Annual Expenses 3,800,000 8,200,000 9,100,000 9,900,000 18,900,000 Income 1,700,000 100,000 1,300,000 2,900,000 1,500,000 Book Value 0 5,200,000 6,100,000 5,200,000 8,300,000 Market Value 5,000,000
Measer Enterprises produces standard telephone key pads. The firm operates in a highly competitive market in which the keypads are sold for $4.50 each. Du tto the nature of the production technology the firm can produce only between 10,000 and 13,000 units per month in fixed increments of 1,000 units Measer has the following cos