Williams Inc reports total net income of $130,000 during 2012. This includes $10,000 of income from 5.5% Orange County municipal bonds. Thus the Corporation's taxable income is equal to $120,000. a) What is William's tax liability for 2012? b) What are William's marginal, average and effective tax rates, respectively? c) I
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If it is to be most useful for control purposes, what variance should be reported to the supervisor responsible for the number of pounds of corn syrup used in the manufacture of candy bar? a) Raw material price variance, expressed in cents per pound. b) Raw material usage variance, expressed as a total cost for the month. c
Bob's Backpacks manufactures school backpacks adorned with movie-theme logos. During the first quarter of the year, the company had the following costs: Direct materials used $51,500 Direct labor 39,000 Factory rent 73,500 Factory equipment depreciation 13,500 Office equipment depreciation 1,100 Marketing expenses 5,800
The Conrad Corporation is a clothing manufacturer that won a sealed-bid contract to produce uniforms for the Government. Now several months later, Conrad has submitted a claim related to the Government's failure to provide Government Furnished Material (GFM). The following paragraphs outline contract events related to the clai
The Economic Order Quantity (EOQ) model is helpful in determining accurate inventory decisions. Discuss the major inventory costs that are used in determining the EOQ. Propose an example from your own experience or what you could imagine where EOQ could be used to improve inventory decisions.
Hello, if you can please help with the below problems and provide an explanation to the solution. I have trouble with the following topics. 1. Stan Ocean Works sells scuba equipment, which carry a 2-year warranty against defects. Past experience has given them a basis to estimate warranty costs as a percent of sales as follo
Using the Part A data: Under which method (variable or absorption costing), will reported profits be higher? Explain why. Part A Data Budgeted and actual fixed costs $1,000,000 Budgeted unit volume to be produced 10,000 Budgeted unit volume sold 10,000 Actual variable costs $500,000 Actual unit volume sold 9,000 Beginn
Mike Barton owns Barton Products, Inc. The corporation has 30 employees. Barton Corporation expects $800,000 of net income before taxes in 2012. Mike is married and files a joint return with his wife, Elaine, who has no earnings of her own. They have one dependent son, Robert, who is 16 years old. Mike and Elaine have no other i
Why are 501(c)(4), 501(c)(6) and 501(c)(7) organizations treated differently from 501(c)(3) organizations? Please provide references as I need this information for a research paper I am writing.
Cost-effective controls to provide confidentiality require valuing the information that is to be protected. This involves classifying the information into discrete categories. Propose a minimal classification scheme that can be used to protect any business and provide examples of the type of information that would fall into each
The concept of a standard used for planning and control purpose is most like a a) measure of ideal performance b) unit budget c) measure of maximum efficiency d) measure of historical performance
Problem 17-1 (Algorithmic) Horizontal Analysis for Income Statement For 2012, Wiglaf Company reported its most significant decline in net income in years. At the end of the year, C.S. Lewis, the president, is presented with the following condensed comparative income statement: Wiglaf Company 1. Prepare a comparative inc
In order to mimic the average time a hiring manager spends on a resume, look at each of the following resumes for about 30 seconds and write down your first thoughts. Then, go back and critique the resumes for improvement, answering the questions below. Download and review the resumes as if you are screening candidates for a var
Crystal Glass is a producer of heirloom-quality glassware. The company has a solid reputation and is widely regarded as a model corporate citizen. You have recently been hired as a staff accountant at a time when the company is experiencing rapid growth and is looking for a substantial increase in the line of credit at the local
Your friend comments, "Horizontal analysis is better than vertical analysis because you can actually see if things are improving between the years." Do you agree with this statement? Explain why or why not. If you were an investor who was considering a potential company in which to buy stock, what three ratios would be your t
A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad: The piece of sheet metal from which five pad cases can be made costs $0.24. This amount is based on the number of sheets in a 4,200-pound bundle of sheet metal, which is the usual purchase quantity. The foam pad
Analyze how corporations treat non-liquidating distributions and determine the most likely mistake(s) the client could make that would result in an IRS audit. Advise the client on how to avoid the mistake(s) and how you would respond to the IRS inquiry if an audit request is received. Take a position as to whether the current
The Speedy Car Repair Shop recently incurred the following costs on a clutch repair job: Parts $245.00 Labor 6 hours @ $17.50 & 0.5 hours at $6.00 A. What is the total cost of this job? B. What characteristics of this firm's products suggest that job-order costing is appropriate?
Hello Mrs Ticchione, I appreciate your quick response with my previous request. I've selected you as my expert for this problem. Thank-you in advance for your assistance. Managers at Appalacian Woolen Mills are examining the following list of costs in order to determine the total amount of Manufacturing Overhead. Labor- P
Earnings announcements by companies are closely followed by, and frequently result in, share price revisions. Two issues should come to mind. First, earnings announcements concern past periods, If the market values stocks based on expectations of the future, why are numbers summarizing past performance relevant? Second, these an
Hello I have been studying for the CPA for quite some time. I needs some help with these questions. I want to know if my answers are correct. Thank you 1. Which of the following gives the owners of the business limited liability? a. proprietorship b. partnership c. Corporation d. None of the above (THIS IS THE AN
We have tax credits for going green like purchasing new cars in general, and credits that promote energy efficient homes and the credit for hybrid cars. There is also the extra deduction available to large SUV's. Does it make sense for our tax laws to promote saving fuel as well as guzzling fuel at the same time?
Many philanthropists do not want to deduct their charitable contributions on their Schedule A as they feel that they should not be rewarded for what they are supposed to do. What do you think about this thought process? How could you convince someone that they should deduct their charitable contributions?
Quality and price equals value. When purchasing a car, does a BMW 500 series that costs $42,000 have more value than a Ford Taurus that cost $25,000? Or, in the mind of the consumer, could they have equal value?
Ipat International Ltd provided the following reconciliation from IFRS to US GAAP in its most recent annual report. ................................................................................................................Net Income Shareholders Equity As stated IFRS..............................................
Starting with your current situation, describe what you must do to ensure an annual retirement income of $60,000 starting at age 65.
Taxation Multiple Choice: Disproportionate Distributions, Partnership Interest, S Corporation Shareholders, LLC, Partnership Income or Losses
37) Which of the following statements regarding disproportionate distributions is false? A. A disproportionate distribution occurs when a partner receives less than his or her proportionate share of the partnership's hot assets. B. A disproportionate distribution occurs when a partner receives more than his or her proport
Multiple Choice Questions: LLC Documents, Tax, Section 351 Transaction, Grand River Corporation, Stock Redemption, Comet Company, El Toro Corporation
25) What document must LLCs file with the state to organize their business? A. Certificate of LLC B. Articles of organization C. Articles of incorporation D. Partnership agreement 26) Which legal entity provides the least flexible legal arrangement for owners? A. LLC B. Partnership C. Corporation
16) Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year convention. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. What is the maximum depreciation expense? A. $1,728 B. $1,874
Taxation: Income Tax in a Foreign Country, Health Insurance Costs, Deductions, Business Expense, Itemized Deduction
Multiple choice taxation help, 6 questions: 10) Helen is a CPA and will spend this entire year in an overseas office of her firm. Helen's salary of $110,000 is subject to the income tax of the foreign country. How much of her salary will she be allowed to exclude from gross income in the United States? A. $91,400 B. $