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individual taxation

1. Larry Bounds has won the gold bat award for hitting the longest home run in major league baseball this year. The bat is worth almost $35,000. Under what conditions can Larry exclude the award from his gross income? Explain. 2. Compare and contrast start-up costs and organizational expenditures. Describe how the tax treat

Kiddie Tax Calculation

Mary is 13. She receives annual interest payments of $4000. What is her taxable income in 2011? Her parents claim her as a dependent. What is her parent's 2011 taxable income? John is 16. In 2011, he earned $6000 working a part-time job and received $5000 of interest income. His parents claim him as a dependent and they do no


Why do providers desire steerage?

change in accounting principle for depreciation

As part of the year-end accounting process and review of operating policies, Cullen Co. is considering a change in the accounting for its equipment from the straight-line method to an accelerated method. Your supervisor wonders how the company will report this change in principle. He read in a newspaper article that the FASB has

Taxes and Shares Distributions

1) Longhorn Company reports current E&P of $100,000 in 20X3 and accumulated E&P at the beginning of the year of negative $200,000. Longhorn distributed $300,000 to its sole shareholder on January 1, 20X3. The shareholder's tax basis in his stock in Longhorn is $100,000. How is the distribution treated by the shareholder in 20X3?

Net Income Allocation

A. John Adams Company purchased equipment on January 1, 2011 for $90,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-year life. Instructions: Answer the following independent questions.

Tax Accounting

Please see attachment. My question is why did he use those rates highlighted in red. Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows: Gross income $50,000 Travel $1,000 Transportation 6,173 miles, using standard mileage method

cost accounting

37) Waco's Widgets plans to sell 22,000 widgets during May, 19,000 units in June, and 20,000 during July. Waco keeps 10% of the next month's sales as ending inventory. How many units should Waco produce during June? A. 19,000 B. 21,000 C. 19,100 D. 18,900 38) Looker Hats is planning to sell 600 felt hats, and 70

cost accounting

10) Which would be an appropriate cost driver for the ordering and receiving activity cost pool? A. Inspections B. Machine setups C. Machine hours D. Purchase orders 11) Which of the following is NOT typical of traditional costing systems? A. Use of multiple cost drivers to allocate overhead B. Use of a

cost accounting

Luca Company over applied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the over applied amount assuming the amount is material? A. An increase to finished goods B. A decrease to work in process inventory C. An increase to cost of goods sold D. A decrease

Integrity and Excellence

The core values for this course are integrity and excellence. Applying the values of integrity and excellence, discuss ethical considerations of accounting for business combinations in a manner that prevents misunderstanding in the questions below. Business combinations have become an important strategic move by corporations

Stewardship and integrity

In corporations, accountants are responsible for identifying, measuring, recording, and communicating financial and other related information to all interested stakeholders. Write a substantial paragraph (200 to 300 words) answering the following questions. 1. Why are the values of responsible stewardship and integr

Problems Involving Net Income

Net Income for Levin-Tom partnership for 2012 was 125000. Levin and Tom have agreed to distribute partnership net income according to the following plan. Levin Tom Interest on average capital balances

This addresses how to read and compare annual reports.

With respect to the three reports in comparison: Income Statement, Cash Flow Statement, and Balance Sheet how can I "zero" in, or in laymen's terms, do an efficient comparison. I cannot give too much detail. I am seeking the valuation method for Sears, Wal Mart & Target, including types of inventory and fiscal year-end dolla

use or sell

ABC Corp. owns a piece of land and building a few miles from its headquarters. The land originally cost ABC $500,000 to purchase. ABC is considering using the facility for a new training program. It could also rent a building about the same distance from its headquarters for $20,000 a year. A developer has offered ABC $2.5 mill

Accounting - Dividends and Stock Outstanding

Could you please help me with the following question: A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend the current year: Preferred stock, $100 par, 6%, 5,000 shares issued $ 500,000 Common stock, $10 par, 75,000 shares issued $

Super Bakery Inc., ABC, Costing Methods

Resource: Feature Story on Super Bakery Inc. Read the attached feature story on Super Bakery Inc. 1. What strategies did the management of Super Bakery, Inc. use? 2. Why did Super Bakery's management think it was necessary to install an ABC system? Do you agree with their reasoning? If you disagree, identify your recomm

Accounting Vertical Analysis

1. What is vertical analysis? When would you use vertical analysis instead of horizontal? Do companies use one or the other? Please explain. What about industry averages? How do people use industry averages for comparative analysis? 2. What are the formulas of the following liquidity ratios and their formulas and what do


A new cardiac catheterization lab was constructed. The investment for the lab was $450,000 in equipment costs and $50,000 in renovation costs. A desired return on investment is 12 percent. Once the lab was constructed, 5,000 patients were served in the first year and were charged $340, for each procedure. The annual fixed cost f

Transfer prices

What are transfer prices? Discuss their major disadvantages.

Multiple Partnership & S Corp Questions

1. The stock of Cardinal Corporation is held as follows: 85% by Blue Jay Corporation (basis of $800,000) and 15% by Samuel (basis of $60,000). Cardinal Corporation is liquidated on October 20, 2009, pursuant to a plan adopted on January 9, 2009. Pursuant to the liquidation, Cardinal Corporation distributed Asset A (basis of $550