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Accounting

This post addresses Closet Inc. and passive activity losses.

Scenario: Let's say for example, Closet, Inc. was a closely held C corporation involved in the real estate rental business in 2010. The company had $3.5 million in passive activity losses. In 2011, Closet, Inc. elected to be taxed as an S corporation, and the company sold a number of rental properties. Can Closet, Inc. c

Sarah Goldberg

Sarah Goldberg, the company's CEO, has been concerned about the consistent losses with their newest location and is considering elminating it. Should Big Kahuna elminate the Park Lane location? Why or why not? Answer A. The Park Lane location should be kept open because its unavoidable expenses would cause the company to e

Price variance

The Elm Institute makes portable tents for hikers. Their tents have a standard materials usage of 4 yards of cloth per tent at $7.00 per yard. During the month, 2,400 yards of cloth were purchased at $7.30 per yard. Production for the month produced 550 tents and used 2,100 yards of cloth. Please compute the materials price vari

Profit

Laurie Kahala just received an opportunity to lease and install a self-photo booth at a local mall. The booth would allow people to sit down, swipe their credit cards and take a set of ten high quality photos in one sitting. The combined lease (some payable to the mall, and the rest to company that owns the photo booth) would b

Practice Problem for Accounting

1. Marcus Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $141.30 per unit. Sales Volume (units) 6,000 7,000 Cost of Sales $347,400 $405,300 Selling & Admi

SLP. Lewis Company Special Order Decision.

I need help developing this SLP. Also I attached the previous one just in case is need it to develop this one since it looks like it is a continuation from the previous one.

Functions and Operations of Investment Banks

Need to examine the functions & operations of investment banks in the U.S. economy and discuss two financial services provided by investment banks. Identify two types of securities that investment bank syndicates sell high, globally. Is it beneficial to search for the best available investment bank or should a firm stay loyal

Accounting Assistance

1. What is meant by the net realizable value for accounts receivable? 2. What is aging of accounts receivable, and how is it used to account for uncollectible accounts? 3. How is the accounts receivable turnover computed? What information does this ratio provide? 4. Describe what is meant by the term "goodwill." 5.

Politics and Economic Growth

I'm just looking for someone's opinion on the following question: The third and fourth year of presidential terms have higher average rates of real growth than the first and second years. Do you think this is a coincidence or is it a reflection of political reality that politicians are more concerned about re-election than ab

corporate taxation

1.Can the sec 1244 stock be preferred stock? 2.How low can the S corp owner set his own salary? 3.How are distributions taxed under an S corp? 4.Can an S corp owner forgo a salary for a distribution? 5.Is rental income considered active income? 6.How are C corporations different from and similar to S corporations? 7.Descri

Glen and Michael are equal partners in Trout Enterprises

Glen and Michael are equal partners in Trout Enterprises, a calendar year partnership. During the year, Trout Enterprises had gross income of $400,000 and operating expenses of $220,000. In addition, the partnership sold land that had been held for investment purposes for a long-term capital gain of $100,000. During the year, Gl

Jordana Woolens: Accounting Problems

18. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 18 - 20: Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows: Beginning WIP: 10,000 Units Units Started: 20,000 Units Units Completed: 25,000 Units Beginning WIP - Direct Mateials: $6,000 Beginning WIP - Conversion Costs: $2,600 Direc

Finding Equivalent Units and Total Production Costs

I need help solving questions for the following scenario: Surf Products Company, Inc. uses an automated process to clean and polish its souvenir items. For March, the company has the following activities: Beginning WIP Inventory: 3,000 units; 1/3 complete Units Placed in Production: 12,000 units Units Completed and Transfe

Various Accounting Calculations

Stanton Company use the following standards in the production of its only product: Direct Materials: 18 Pounds @ $25 per pound Direct Labor: 6 Hours @ $18 Per Hour During March, company records showed the following: Materials purchased: 12,000 Pounds @ $264,000 Materials used: 15,000 Pounds Direct Labor Hours: 4,700 Hours

Bauer Manufacturing Company, Inc.

Bauer Manufacturing Company, Inc. uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 2008, the followin

Cost of Goods Manufactured, Gross Margin, Operating Income

Please help with the following problems. Please provide step by step calculations for each. 2. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 2-4. Harding Company reports the following information: Beginning FG Inventory, 1/1/2008 = $80,000 Ending FG Inventory, 12/31/2008= $67,000 Cost of Goods Sold = $270,000 Sales Re

Bachman Corp: Contribution margin

I need help with the following: Bachman Corp. produces three products. Data concerning the selling prices and unit costs of the three products appear below: Product A B C Selling price $40 $50 $90 Variable costs 30

Impact on breakeven point if sale price, variable costs, and fixed costs change

Dependable Drivers Driving School charges $250 per student to prepare and administer written and driving tests. Variable costs of $100 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $75,000 include the training facility and fleet of cars. Requirements 1. For each of the following

Annual Report Quixote Consulting: Financial Highlights and President's Letter

Create the Financial Highlights and Presidents Letter to the Stockholders similar to what would be contained in a company's annual report. Companies normally issue these reports to the stockholders and other interested parties. These reports summarize the company's operating activities for the past year and plans for the futu

Precedents for Courts to Follow

What precedents must each of these courts follow: a. U.S. tax Court. b. U.S. Court of Federal Claims. c. U.S. District Court.

Access Database and Queries

I need some help with answering a couple questions below: - What are some of the advantages and the disadvantages of database forms? The efficiency and effectiveness of an Accounting Information System rests on the design of its Schema. A schema needs to be designed in such a way that it can easily answer the questions use

Tiger Pride

Tiger Pride produces two product lines: T-Shirts and Sweatshirts. Product profitability is analyzed as follows: T-SHIRTS SWEATSHIRTS Production & Sales Volume - Units 60,000 35,000 Selling Price $16.00 $29.00

Peggy's Pillows

Peggy's Pillows produces and sells a decorative pillow for $75.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed manufacturing costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs = $20.00 per

A Lovers' Triangle and the Passive Loss Rules; research as R&D

A Lovers' Triangle and the Passive Loss Rules. The troubled marriage of john and Eleanor finally reached an impasse, and they mutually agreed to divorce. shortly after the divorce was finalized, John married Kristen. The three have known each other for years from working together to harvest the grapes of a vineyard owned by j

Increase an organization's operating income

Could you please help me to understand these concepts: Explain how producing more products that can be sold in a period can increase the organization's operating income. Is this a sustainable tactic to increase the organization's operating income? Would this happen in a service type company or is it an issue only in manufacturi