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    Home Office Tax Deductions

    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:

    Taxes on sale of home

    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

    Tax Effects of Sale or Exchange of a Commercial Building

    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

    Medical deductions for regular tax and AMT tax

    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

    At risk rules and Passive activity losses

    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

    Like Kind Exchanges

    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

    Tax Liability

    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

    Annual Depreciation Expense

    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

    Comparison of Single Cost Drivers to ABC

    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

    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

    Optimal Output levels for Measer Enterprises

    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

    Activity Based Costing in a Dialysis Clinic

    A dialysis clinic offers two services hemiodialysis(HD) and peridoneal dialysis (PD). HD requires patients to come to the clinic three time a week to receive treatment. PD allows patients to administer their own treatment daily in their own homes. The profit analysis of the two services follows: Total HD PD Revenue

    Accounting Information Systems (AIS)

    1. From the perspective of an accountant, what are your priorities about the accounting information system performance? How are these priorities related to the accounting internal control, the system components and the processes of developing the system? 2. What are the drawbacks of poorly documented systems?

    Managerial Accounting Problems

    1. Machain Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's cost formula for variable overhead cost is $2.90 per machine hour. The actual variable overhead cost for the month was $15,270. The original budget for the month was based on 5,000 machine hours. The compa

    Goodwill Asset Amortiztion/Depletion

    Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. Timber rights on a track of land were purchased for $720,000 on July 11. The stand of timber is estimated a 2,250,000 board feet. During the current year, 600,000 board feet of timber were

    Managerial Accounting

    16. Yehle Inc. regularly uses material YS1E and currently has in stock 460 liters of the material for which it paid $2,530 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $4.55 per liter. New stocks of the material can be purchased on the open market for $5.45 per liter, bu

    Accounting Problems

    1.) A total of 6850 kilograms of raw material was purchased at a total cost of $21,920. The material price variance was $1370 favorable. The standard price per kilogram for the raw material must be: A) $0.20 B) $3.00 C) $3.20 D) $3.40 2.) Merle Corporation applies manufacturing overhead to products on the basis of s

    Change in Sales Level

    Reported sales of $2.4 million. Variable costs are 80% of sales and fixed costs are $160,000. The firm has a 35% tax rate and interest expense is $120,000. If EPS is $3.75, what would the sales level have to change to before EPS would fall below $3.00? Answer: $2.2 million I need the calculation in order to comput

    Accounting - Break Even

    CVP Analysis - break even. The current selling price is $15 per unit. Variable expenses are $9 per units, and fixed expenses total $27,000 per month. A. Calculate the break even point expressed in terms of total sales dollars and sales volume.

    Deductions for AGI - 'above the line' deductions

    Alex, a single taxpayer, has a salary of $100,000. He incurred & paid the following expenses during the year: Medical expenses $5000 Alimony $24,000 Charitable contribution $2000 Casualty loss (after $100 floor) $1000 Mortgage interest on personal residence $4500 State income taxes $4200 Mov

    Itemized Deductions Limitations

    Bob, who is single had AGI of $400,000 in 2006. He incurred the following expenses & losses during the year. Medical expenses before 7.5% of AGI limitation $39,500 State & local income taxes $5,200 Real Estate taxes $4,400 Home mortgage interest

    limitations within itemized deductions

    For 2006, Jon & Betty Smith file a joint return with AGI of $240,000. Their itemized deductions are the following: Medical expenses before AGI floor $23000 Casualty loss (not covered by insurance) before statutory floors $26,000 Interest on home mortgage $10,000 Interest on credit cards $800 Property taxes on home $13,000

    Taxable Income and Home Mortgage Interest Rates

    Janet, (single) has the following items for 2006: - Salary $140000 - Home mortgage interest $10,000 A hurricane completely destroyed her duplex during the current year. She lived in half of the duplex & rented the other half. She paid $400,000 for the duplex & has taken $80,000 of cost recovery on the rental portion. It w

    Financing & Accounting - Annual Payments

    John Doeber borrowed $125,000 to buy a house. His loan cost was 11% and he promised o repay the loan in 15 equal annual payments. How much are the annual payments? A) $3,633 B) $9,250 C) $13,113 D) $17,383

    Accounting Review Problems

    Introduction to Managerial Accounting Review Questions Chapter 7 1. Which of the following might be included as a disbursement on a cash budget? A) A Above B) B Above C) C Above D) D Above 2. Thirty percent of Sharp Company's sales are for cash and 70% are on account. Sixty percent of the account sales

    Multi-nation gross margin and tax calculations

    Multi-National Enterprises (MNE) operates in two countries, X and Y, with tax rates of 40% and 10%, respectively. Production costs are exactly the same in each country. The following summarizes the operating data for the two subsidiaries. (All data have been converted to dollars to simplify the example.) Subsidiary In Country

    Managerial Accounting Problem

    Cost Volume Profit Analysis You are considering the purchase of a hotel with 20 rooms. If you buy it ,the fixed costs are expected to be $200,000 per year. The variable costs of renting a room for one night include $20 for maid service and $5 for utilities and other costs. Assume no taxes. a If you expect to rent the rooms

    Managerial Accounting Problem

    Rose Bowl sells tickets for $100 per person and has a capacity of 100,000 people. Each person buys on average $20 of food and trinkets. The cost of providing the food, trinkets, guards, ticket saleperson and clean up is $10 per person. The fixed cost of renting the Rose Bowl and paying the teams is $10,000,000. Television pays $