Atlantic Corporation, a calendar-year taxpayer, has $120,000 of accumulated E & P deficit as of January 1. Atlantic's current E & P is $40,000. The corporation makes a $50,000 distribution to its shareholders. (Shareholders have stock basis of $60,000.. How is the $50,000 distribution to the shareholders characterized by the sha
In a multi-state business where the firms sell products to other firms for the same price, how can transfer pricing be best structured in order to minimize state income taxes?
1. Monthly production costs in Pesavento Company for two levels of production are as follows. Cost 2,000 Units 4,000 Units Indirect Labor $10,000 $20,000 Supervisory Salaries 5,000 5,000 Maintenance
Please see attached. ______________________________________________________________________________________________________________ 1. Brad and Kate received $9,500 for rent from Mike and Janet, who are renting their home in California. Brad and Kate did not use this property for personal use. The rent covers eight months
Lager Corp. produces and supplies automotive manufactures with the mechanisms used to adjust the positions of front seating units. Several competitors have recently entered the market, and management is concerned that the quality of the company's current products may be surpassed by the quality of the new competitors' products.
The Doe Company sells three products: sliced pineapples, crushed pineapples, and pineapple juice. The pineapple juice is a by-product of sliced pineapple, while crushed pineapples and sliced pineapples are produced simultaneously form the same pineapple. Some pineapple slices break, and these are used to make crushed pineapple.
Which of the following is more relevant to management accounting than to costs accounting: a. accumulation and determination of product or service costs b. income measurement and inventory valuation c. generally accepted accounting principles d. providing mangers information for planning and control purposes
What is incremental analysis? Provide an example, using numbers, of how incremental analysis might be used to make business decisions.
1) Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs $5.00 Fixed manufacturing costs $1.50 Variable marketing costs $1.00 Fixed marketing costs $0.50 Capacity cannot be added in the short run and the firm currently sells the product for
Eddie Kelly is running for reelection as mayor of a small town in Alabama. Jessica Martinez, Kelly's campaign manager during this election, is planning the marketing campaign, and there is some stiff competition. Martinez has selected four ways to advertise: television ads, radio ads, billboards, and newspaper ads. The costs of
One thing to keep in mind is that defined benefit plans are far less used today that they were in years past
One thing to keep in mind is that defined benefit plans are far less used today that they were in years past. In fact, the article in the link below indicates defined benefit plans may be on the way out or at least severely reduced in the coming years. http://www.forbes.com/2009/06/22/pension-plans-economy-business-oxford-ana
Every organization's accounting is affected in some way by the time period assumption. Looking at your present or past work experiences, how does this assumption affect the operation of the "business"? What types of adjusting entries did your organization face?
All of the outstanding stock of a closely held C corporation is owned equally by David Smith and Steve Bufusno. In 2011, the corporation generates taxable income of $30,000 from its active business
All of the outstanding stock of a closely held C corporation is owned equally by David Smith and Steve Bufusno. In 2011, the corporation generates taxable income of $30,000 from its active business activities. In addition, it earns $20,000 of interest from investments and incurs a $40,000 loss from a passive activity. How much i
Shipyard Corp. acquired Boatworks Corp. in a Type A reorganization on October 19, 2011. On the date of acquisition, Boatworks had a deficit in its earnings and profits of $30,000. Although Shipyard had no accumulated earnings and profits, its current earnings and profits from its calendar year 2011 operations totaled $40,000. W
P19.34 Transfer Pricing: Performance Evaluation Issues. Tallahassee Division of Gulf South. The Tallahassee Division (TO) of Gulf South Corporation, operating at capacity, has been asked by Jaydee division to supply it with electrical fitting no. 1726. TD sells this part to its regular customers for $15.00 each. Jaydee, whi
Differentiate between the various rates of pay among the different major groups of employees, and include information about the differences between exempt and nonexempt employees. Discuss how wage and hour legislation has affected employment practices.
Yazmin began a new business and set up her company as an S-Corporation. At formation, she contributed cash of $20,000 and property that had a value of $200,000 and basis of $150,000. In year one, Yazmin also lent the S-corporation an additional $100,000 in a properly executed note. The corporation paid Yazmin $5,000 in intere
(BE20-7) Shin Corporation had a projected benefit obligation of $3,100,000 and plan assets of $3,300,000 at January 1, 2010. Shin also had a net actuarial loss of $465,000 in accumulated OCI at January 1, 2010. The average remaining service period of Shin's employees is 7.5 years. Compute Shin's minimum amortization of the actu
When someone say the gains or losses is an element of pension expense, can this mean the company would have to take action if the pension is over or under funded?
When someone say the gains or losses is an element of pension expense, can this mean the company would have to take action if the pension is over or under funded? If the pension is under funded the company needs to increase funding and thus expense is increased. But, if the pension was under funded, what action is the company re
Do these gains or losses impact the benefits the employee will eventually receive? Pension expense components include interest costs, service costs, related fees, gains and losses on the plan, and amortization from the prior service costs on the plan. The interest rate for pension expense is determined by using the projected
Phan Mai is a single taxpayer with two dependent children under age 17. Phan estimates her wages for the year will be $36,000 and her itemized deductions will be $11,000. Assuming Phan files as head of household, determine the number of withholding allowances Phan should claim. Whcih form should be used to report following pa
Santo Corporation was granted a patent on a product on January 1, 1999. To protect its patent, the corporation purchased on January 1, 2008 a patent on a competing product which was originally issued on January 1, 2004. Because of its unique plant, Santo Corporation does not feel the competing patent can be used in producing a
On August 1, 2012, Kegan Corporation purchased a new machine on a deferred payment basis. A down payment of $3,000 was made and 4 monthly instalments of $4,000 each are to be made beginning on September 1, 2012. The cash equivalent price of the machine was $16,200. Kegan incurred and paid installation costs amounting to $500. Th
Colin Boyd, "The Structural Origins of Conflicts of Interest in the Accounting Profession" details the events that led to the collapse of Enron and scandals at other companies
Colin Boyd, "The Structural Origins of Conflicts of Interest in the Accounting Profession" details the events that led to the collapse of Enron and scandals at other companies. Do you believe that corporate capital punishment was a just outcome for Arthur Andersen and its many employees and partners? Why, or why not? Appeal to
Prepare adjusting entry for prepaid expenses. 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.
Selling price per unit $100 Variable expenses per unit $40 Fixed expenses per month $60,000 Operating income at a volume of 4,000 unit per month is: a. 240,000 b. 200,000 c. 180,000 d. 120, 000
13. Bella Company is considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $50,000 over its 10-year useful life. Annual dpreciation will be $45,000. Compute the cash payback period. 17. Caine Bottling Corporation is considering the purchase of a new bottlin
Which of the following is another term for mixed costs? 1 semi mixed costs 2 semi variable 3 componenet costs 4 none of the above
A 10% change in a firm's revenues is likely to result in a change of more than 10% in the firm's operating income because?
A 10% change in a firm's revenues is likely to result in a change of more than 10% in the firm's operating income because: 1 not all of the firm's costs will change in proportion to the revenue change. 2 the firm has financial leverage. 3 the contribution margin ratio will change in proportion to the revenue change.
Products A, B, and C are produced from a single raw material input. The Raw material costs $90,000 from which 5,000 units of A, 10,000 units from B, and 15,000 units of C can be produced each period. Product A can be sold at the split off point for $2 per unit, or it can be processed further at a cost of $12,500 and then sold fo