The return on investment measure of performance: a) Is not as important a measure of management effectiveness as the amount of net income. b) Relates dividends paid to the entity's assets c) Is calculated using net income as the amount of return d) Is calculated by dividing average assets for a period by the amount of net in
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Bad debt expense is recognized in the same accounting period as the revenue that is related to the receivable because: a) the accounts receivable asset should be stated at original cost b) the exact amount of the losses from bad debts is known c) revenues should be stated at realized value d) all costs incurred in the curren
Kordel Inc. acquired 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be eliminated?
A company has 33,000 units of its sole product that it produced last year at a cost of $71 each. This year's model is superior to last year's and the 33,000 units cannot be sold for their regular selling price of $127 each. The company has two alternatives for these items: (1) they can be sold to a wholesaler for $45 each, or (2
Taylor Chains Taylor designs and manufactures high performance bicycle chains for professional racers and serious amateurs. Two new titanium chain sets, the challenger and the Tour, sell for $110 and $155, respectively. The following data summarize the cost structure for the two chain sets: Taylor uses an absorption costing
Tom and Jerry are considering forming a partnership. Both taxpayers use the calendar year and are cash basis taxpayers. The partnership will not be a tax shelter. The partners are uncertain as to whether the partnership should use the cash or accrual method of accounting. Also, the idea of a tax deferral in the first year of ope
Regents Supply completed the following transactions during 2008 and 2009: 2008 Dec 31 Estimated that Uncollectible accounts expense for the year was 3/4 of 1% on credit sales of $400,000 and recorded that amount. Dec 31 Made the closing entry for Uncollectible accounts Expense 2009 Jan 17 Sold inventory to Abe Gomez, $6
Several states have declared sales tax holidays, in which the state does not collect sales tax on certain items for a given period of time. In most instances, the holiday has applied to purchases of clothing and the period has been a week to 10 days in August, the idea being to give a "back-to-school" discount as families to get
Eddie & Company is a small manufacturer located in the North Central part of the United States. The company manufactures auto and truck axles for automobile producers. Most of its output is sold to one of the larger auto companies. Because its sales have recently increased beyond all expectation, that company now wants Eddie & C
In 2012, Wilson had ordinary taxable income of $325,000 before considering any property transactions. Wilson had no prior year Section 1231 losses. During 2012, Wilson had the following property dispositions. - Wilson sold two blocks of stocks held for investment. The sale of one block of stock yielded a short-term capital g
On November 1, 2012, Walmart sold land used for 5 years in its trade or business on the installment basis. Under the terms of the installment agreement, Walmart received $500,000 in 2012 and $250,000 annually for 4 years beginning in 2013. Walmart purchased the land on January 5, 2007 for $600,000. What is the character and amou
On June 4, 2012, Tyler purchased 2,000 shares of Target stock for $20,000. On October 15, 2012, Tyler sold the 2,000 shares for $14,000. On November 8, 2012, he purchased 1,000 shares of Target stock for $5,000. What is Tyler's realized and recognized gain or loss on the October 15, 2012 sale and his basis in the stock fr
Kelley has a warehouse, which it owned for five years and used in trade or business to store inventory, that was destroyed by a tornado on October 30, 2012. Kelley paid $1,200,000 for the warehouse and its adjusted basis was $1,000,000 on the day it was destroyed by the tornado. Assume that Kelley received insurance proceeds of
Joel owned land purchased five years ago for use in business operations at a cost of $300,000. The land was worth $800,000 and was encumbered by a $400,000 mortgage. Sara owned land purchased three years ago as an investment for $500,000. The land was encumbered by a $320,000 mortgage and was worth $750,000. On November 1, 2012,
1. Urban Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2009 are as follows: Production data: In process, beginning of month (20% converted) 1,000 units Started during February 5,
A number of specific transactions do not necessarily follow the general tax provision applicable to property transactions. Following are a group of transactions that are subject to specific tax provisions. For each of the situations, you are to answer the questions and cite the source for your answer. 59a. Martin, a securitie
a) List and describe four potential problems with a "traditional" overhead allocation system. b) List and describe four "red flags" that may indicate you should consider revising your overhead allocation system.
The ABC Company manufactures widgets. It competes and plans to grow by selling high-quality widgets at low prices and by delivering them to customers quickly. There are many other companies in the industry producing similar widgets. ABC believes it needs to continuously improve its manufacturing and delivery processes and that h
a) Describe the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity. b) Describe the difference between transaction drivers and duration drivers. When would one type be preferred over the other?
Hi, I need some assistance with the following business questions. I am not too sure how to approach all of these exactly. Any help would be appreciated. Questions: 1) What is the agency issue between a private practice accountant, as most of us will be, and their clients? What are the related ethical challenges? 2) What i
To be a valid Negotiable Instrument certain requirements are necessary. Suppose a taxpayer wanted to protest the amount he had to pay to the Internal Revenue Service. While playing a round of golf under the hot Florida sun, he writes on the back of his old, sweaty, golf shirt "To: Bank of Mine, account #4312, Pay to the order of
Sage, INC. has 20 employees who earn $100 per day and are paid every Friday. The end of the accounting period is on a Wednesday. How much wages should the firm accrue at the end of the period?
What are three factors that are essential to consider in prioritizing programs or projects?
Helen pays nursing home expenses of $3,000 per month for her mother. The monthly charge covers the following items: $1,400 for medical care, $900 for lodging, and $700 for food. Under what circumstances can Helen include the $3,000 per month payment when computing her medical expense deduction for the year? If Helen is not allow
Note: I am an adult continuous learner. I started to learn EVM at work; however, I am hitting a wall with the EVM problems I am posting. Since I am a visual learner and learn by example, I need the following completed. 1) Provide and show all answers and step by step work to obtain the answer, not skipping any steps. Show a
Question one: Love Inc factored $800,00 of accounts receivable with Jaz Finance on a without recourse basis on June 30. The terms of the contract stated that Jaz Finance was to make collections, handle sales discounts and absorb the credit losses. Other terms included Love Inc to pay a finance charge of 8% of the total account
Based on the "Tax Proposals in the 2011 Budget: What's in It for You?" explain the implications of the proposal for your state's budget of your state (Illinois) with respect to: Individual taxation Corporate taxation Payroll taxation Review "Tax Proposals in the 2011 Budget: What's in It for You?"
1) Compute the East Division's ROI for last year; also compute the ROI as it would appear if the new product line is added. 2) Compute the East Division's residual income for last year; also compute the residual income as it would appear if the new product line is added. Please see the attached file for complete question.
Renton Co. has two operating (production) departments supported by a number of service departments. The following information was collected for a recent period: (see attachment for table) Indirect costs are allocated as follows: salaries on the basis of sales, office expenses on the basis of the number of employees, and al
A chair manufacturer has two divisions: framing and upholstering. The framing costs are $100 per chair and the upholstering costs are $200 per chair. The company makes 5,000 chairs each year, which are sold for $500. Un-upholstered chair frames can be sold at cost to other chair manufacturers. a) What is the minimum transfer