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
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-
I'm not sure if you can help with this, but I've searched the net to get some kind of starting point for this question and still haven't found an answer for 'by-product processing'. As a result of the apple drink manufacturing process, TOO produces a large amount of apple waste. The operations manager proposes a use for the a
On July 1, 2006, Orlow Co. pays $12,000 to Pizner Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Orlow Co., journalize and post the entry on July 1 and the adjusting entry on December 31.
Why would a company choose to form as a corporation? What are the steps that are required to become a corporation? What are the advantages and disadvantages of the corporate form of doing business?
1. For 2005, Arlene's only capital transactions are a short-term loss of $2,000 and a long-term loss of $2,000. How are these losses handled for tax purposes? 2. During the year, Wilbur received the following in connection with his father's estate: ? His father's will named Wilbur as the executor of the estate. He received
Assume that the City of Pasco maintains its books and records in a manner that facilities preparation of the fund financial statements. The Cit engaged in the following transactions related to its general fund during the current fiscal year. The City formally integrates the budget into the accounting records. The City does not m
I need a summary of Circular 230. There doesn't need to be any specific layout-just a plain summary of the most important parts & the general meaning. I have to make a presentation to my business class. I attached the full circular 230 I found on the IRS website.
Baker Construction is a small corporation owned and managed by Tom Baker. The corporation has 21 employees, few creditors, and no investor other than Tom Baker. Thus, like many small businesses, it has no obligation to issue financial statements to creditors or investors. Under these circumstances, is there any reason for this c
Please help with these four questions _____ 12. The use of a "blind" purchase order is designed to prevent errors by the: A. Purchase department B. Receiving department C. Stores department D. Accounting department _____13. Which of the following best describes the auditors' typical
Each paper shredder has a standard material cost of 20lbs.at $6.50/lb. or $130 in total. 60,000lbs of material were purchased for $420,000 during the period and 39,000lbs were used in the production of 2,000 good units. Compute the direct materials price and quantity variances. Label them as favorable or unfavorable.
Question: Explain accounting steps for the sale and retirement of property, plant and equipments and record journal entries for the following transactions. On 1st July 2002, Jessica Ltd purchased equipments for $130000 cash. It was estimated that the equipments would have a salvage value of $ 10000 and a useful life of six y
1. A firm is considering two business projects. Project A will return a loss of $5 if conditions are poor, a profit of $35 if conditions are good, and a profit of $95 if conditions are excellent. Project B will return a loss of $15 if conditions are poor, a profit of $45 if conditions are good, and a profit of $135 if conditions
A company's January 1 goods in process inventory contained 30,000 units that were 1/4 complete with respect to direct labor. The beginning inventory was completed this year and another 120,000 units were started. Of those started, 80,000 were finished and the remaining 40,000 were left 1/5 complete. Calculate the equivalent unit
Why do companies issue bonds? Would you rather buy a bond at a discount or a premium rate? Why or why not? What is the determining factor of whether a bond is sold at a discount, face, or premium?