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 $
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7. When can the NPV and the IRR methods of evaluating investment projects provide contradictory results? (b) How can this arise? (c) Which method should then be used? Why? 15. In what ways the higher interest rates in the United States than abroad interfere with the international competitiveness of U.S. firms? 8. Problem 8
Given the following errors: The bank recorded a deposit of $200 as $2,000. The company's bookkeeper mistakenly recorded a deposit of $530 as $350. The company's bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and made the deposit for the
Audry, age 38 and single, earned a salary of $59,000. She had interest income of $1,600 and had a $2,000 long-term capital loss from the sale of a stock investment. Audry incurred the following employment-related expenses during the year: Transportation $55,800 Meals $2,800 Lodging $4
During the current year, Jacob's personal residence, some of the contents, and his car were damaged or destroyed b a fire. Information with respect to the damaged and destroyed assets is as follows: Asset Adjusted Balance FMV Before FMV After Insurance Recovery Home $300,000 $400,000 $350,000
It has been a busy day. Three new clients have dropped off their tax information. Ann has just moved to California from Tennessee. You notice that she sold her home in Tennessee eight months after moving to California. She had owned the home for a little over three years. She rented the home after moving. Originally, she had
1. The cost of fire insurance for a manufacturing plant is generally considered to be a: a. product cost. b. period cost. c. variable cost. d. all of the above. 2. An opportunity cost is: a. the difference in total costs which results from selecting one alternative instead of another. b. the benefit forgone by selec
A seller generally records sales a the full invoice price, but the buyer often records purchases at net cost. Explain the logic of the buyer and seller recording the transaction at different amounts.
Tax problems for depreciation, exchanges and gain calculations for Section 1245 and Section 1250 property
Bonnie purchased a new business asset (5-year property) on 03/10/06, at a cost of $20,000. She also purchased a new business asset (7-year property) on 11/20/06 at a cost of $13,000. Bonnie did not elect straight-line recovery. Determine the cost recovery deduction for 2006 these assets? David owns a warehouse that is used in
Calculate the after-tax cost of debt under each of the following conditions; A. Interest rate, 13 percent; tax rate, 0 percent B. Interest rate, 13 percent; tax rate, 20 percent C. Interest rate, 13 percent; tax rate, 35 percent.
Currently, your only funding for your business has come from your rich relative. What is the risk involved in this financing situation? What is the risk involved in other financing situations (e.g., selling bonds, issuing stock, venture capital, and debt and equity financing)? Using the Library and other Internet resources, i
Preparing a Flexible Budget (LOI) An incomplete flexible budget for overhead is given below for AutoPutz, Gmbh, a German company that owns and operates a large automatic carwash facility near Koln. The German currency is the euro, which is denoted by E. See attached file for full problem description. AUTOPUTZ, GMB
Foreign Earned income and housing exclusion. See attached file for full problem description.
Chad Scott contributed $15,000 in company A along with 4 other limited partners. The limited partnership also took out a loan of which Chad portion $50,000. The loan was through Compass Bank, which is actively and regularly engaged in the business of lending money. The property company A purchased with the loan proceeds was purc
In addition to social security benefits of 8000, Mr and Mrs Wells have adjusted gross income of 32,000 and tax exempt interest of 1000 and will file a joint return. The taxable portion of the social security benefits will be?
A taxpayer had the following income and losses in 2006: salary 55,000 sold stock at a loss (5000) lottery prize 4500 gambling winnings 8000 gambling losses (5000) What is the taxpayers adjusted gross income?
Anne, age 58, purchases an annuity for 33,600. Anne will receive 400 per month for the rest of her life. The expected return multiple is 20.0. At age 65, the amount that Anne may exclude from income is?
Carolyn, who earns 400,000 is required to pay John, her ex husband 200,000 as part of the property settlement as a result of their divorce. In turn, John transfers stock worth 50,000 to Carolyn. What is the amount of Carolyn's adjusted gross income for the year?
Thomas and Sally were divorced last year. as a result, Thomas must pay Sally alimony of 100,000 per year starting this year and relinquish the house and car with a combined value of 170,000 and a combined cost basis of 155,000. The house and car are given as a property settlement. As a result of these transactions Thomas has a d
In December 2006, max, a cash basis taxpayer, rents an apartment to Charlie. Max receives both the first and last months rent totaling 1000 plus a security deposit of 400. The amount of income reported as taxable income in 2006 is?
Sara, who gives music lessons, is a calendar year taxpayer using the accrual method of accounting. On Oct. 1 of this year she received 25,000 for a one year contract beginning on the date to provide 10 lessons. She gave 6 lessons this year. How much should Sara include in income this year?
1. Journalize and post the following transactions 2. Prepare a trial balance sheet. The following were selected from among the transactions completed by Springfield Company during January of the current year. Jan. 3. Purchased merchandise on account from Pynn Co., list price $16,000, trade discount 35%,
8. Push-down accounting is concerned with the A) impact of the purchase on the subsidiary's financial statements. B) recognition of goodwill by the parent. C) correct consolidation of the financial statements. D) impact of the purchase on the separate financial statements of the parent. E) recognition of dividends rece
Advise the partnership as to which tract of land should go to which partner based on the following information.
Mr. Smitovich (age 68) and his daughter Grace Pelton (age 32) are equal partners in Shore Realty Partnership. They plan to discontinue Shore's business and divide the partnership's $14,000 cash and two remaining inventory items between them. The inventory items are tracts of undeveloped land: Greenacre (FMV $100,000 and inside b
In the consolidated income statement of Croton Corp and its 84%-owned subsidiary, the minority interest income was reported at $33,680. What amount of net income did the subsidiary have for the year?
14. Webb Co. purchased 100% of Rand Inc. on January 5, 2003. During 2003, Webb sold Rand for $2,400,000 goods that cost $1,900,000. Rand still owned 40% of the goods at the end of the year. Cost of goods sold was $10,800,000 for Webb and $6,400,000 for Rand. What was consolidated cost of goods sold? A) $17,200,000 B) $15,
I have completed this practice problem minus the depreciation that I am having issues calculating. I need all the depreciation calculations for the assets associated with this problem before I can move on to the next one. If you could include the depreciation schedules from the tax return that would be helpful! please explain ho
Theory of Constraints in a Non-Profit Organization. See attached file for full problem description. A university bookstore is a nonprofit retail outlet for textbooks, computers, and general merchandise (including trade books, supplies, and university-licensed apparel and gifts). It is located near the main campus of State Uni
See attached file for full problem description.
It has been said that private business people do not do enough for the societies they live in. After graduation, some students choose to go into the public, non-profit sector instead of the private business sector because they want to help others. However, business people claim that they actually do more to help others than non-