For each of the following cases, indicate the filing status for the taxpayers for 2010 using the following legend: A - Single B - Married, filing a joint C - Married, filing separate returns D - Head of household E - Qualifying widow(er) a. Linda is single and she supports her mother (who has no income), including
Calculate - budgets
Income & Operating Expenses: Calculate the operating income for Spenser Co. for the year ended December 31, 2010.
1. Mary owns a shoe store. She just received a shipment of new fashion shoes. These shoes cost $45.00 a pair from the manufacturer. She wants to make a net profit of $20.00 on each pair. By selling them at $65.00 do you think she accomplishes her goal? 2. You are the public manufacturer of the shoes sold to Mary. T
What procedures will be used to collect accounting evidence?
Shelley is employed in Texas and recently attended a two-day business conference in New Jersey. Shelley spent the entire time at the conference and documented her expenditures (described below). What amount can Shelley deduct as an employee business expense? Airfare to New Jersey $2000 Meals $220 Lodging in New Jersey $450
Computer company, a manufacturer of computer systems, started production in November 2011. Utility cost on the factory is $600 per month. Utility cost on the administrative building is $300 per month. Raw material cost for a computer total $120 per computer system. The company purchased enough materials to produce 504 com
a) Third National Bank is fully loaned up with reserves of $30,000 and demand deposits equal to $100,000. The reserve ratio is 10%. Households deposit $10,000 in currency into the bank. How much excess reserves does the bank now have, and what is the maximum amount of new money that can be created in the banking system as a resu
Chaney Ltd. started business several years ago. For the year ended December 31, 2010, the following information (before adjustments) is available: Accounts Receivable 56,000 Allowance for Doubtful Accounts 350 Sales (all on account) 195,700 Sales Discounts 1,800 All accounts have normal balances Required: Prepare entries
Wings flight school offers lessons at a small municipal airport. The school's owner and manager has been attempting to evaluate performance and control costs using variance report that compares the planning budget to actual results. A recent variance appears below:
The manager of the manufacturing unit of a company is responsible for the costs of the manufacturing unit. The president is in the process of deciding whether to evaluate the manager of the manufacturing unit by the average cost per unit or the variable cost per unit. Quality and timely delivery would be used in conjunction with
Harold's roof repair has provided the following data concerning it costs: Fixed Cost per Month Cost per repair-hour Wages and Salaries............$21,380 $15.80 parts and supplies
Olympia Bivalve farms and sells oysters in the pacific northwest.The company harvested and sold 7,000 pounds of oysters in july. The company's flexible for July appears below: Olimpia Bivalve flexible budget
Jackie's is a large, locally-owned general retail business operating out of a single location. A condensed version of their most recent annual segmented income statement is given below (all amounts in thousands of dollars). Company Dept A Dept B Depts C-F Sales $3,450 $ 345 $690 $2,415 COGS 1,538 179 3
Product J is one of the many products manufactured and sold by Gooble Company. An income statement by product line for the past year indicated a net loss for Product J of $7,250. This net loss resulted from sales of $265,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost
Presented here is an aging schedule for Zimmerman Company. Please see attachment. Customer Total Not Yet Due Number of Days Past Due 1â?"30 31â?"60 61â?"90 Over 90 Aaron $22,000 $12,000 $10,000 Barry 40,000 40,000 C
Dan in Florida wants to trade Liz in New York: Dan's rental property is worth $350,000. Dan's adjusted basis is $200,000. Liz's rental property is worth $650,000 and has a $250,000 mortgage that will be assumed by Dan. Dan will also give Liz $50,000 in cash at closing. Liz's adjusted basis is $400,000. What
The factory overhead costs (maintenance department) are allocated to products based on the number of hours of maintenance use by each product line. The maintenance department has fixed costs of 500,000 and variable costs of 25 per hour of maintenance provided. The variable costs include the salaries of the maintenance workers. M
Geballe Industries is a division of a major corporation. Last year the division had total sales of $21,420,000, net operating income of $2,270,520, and average operating assets of $6,000,000. The company's minimum required rate of return is 10%. Question What is the division's margin? What is the division's turnover? W
The table below shows the differences in accounting treatments for goodwill in three selected countries. Accounting for goodwill in selected countries United States - No-to expense immediately; No-to charge to equity; No*-tax deductible Canada - No-to expense immediately; No-to char
The management of Wallingford MicroBrew is considering the purchase of an automated bottling machine for $93,500. The machine would replace an old piece of equipment that costs $43,000 per year to operate. The new machine would cost $13,000 per year to operate. The old machine currently in use could be sold now for a scrap value
Issa Company manufactures a personal computer designed for use in schools and markets it under its own label. Issa has the capacity to produce 25,000 units a year but is currently producing and selling only 15,000 units a year. The computerââ?¬â?¢s normal selling price is $1,600 per unit with no volume discounts. The unit-l
Last year the return on total assets in Jeffrey Company was 8.5%. The total assets were 2.9 million at the beginning of the year and 3.1 million at the end of the year. The tax rate was 30%, interest expense totaled $110 thousand, and sales were $5.2 million. Net income for the year was: A) $145,000 B) $222,000 C) $33
Distributions from Clampett, Inc., How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew? What is Brett's outside tax basis in his LLC interest?
23- Clampett, Inc. (an S corporation) previously operated as a C corporation. Distributions from Clampett, Inc. are deemed to be paid in the following order: A. The AAA account, prior C corporation earnings and profit, shareholder's remaining stock basis B. Shareholder's remaining stock basis, the AAA account, prior
Taxes: What is the tax impact to a taxable corporation or an S corporation when it makes a property distribution to a shareholder? and more....
9- Beth's business purchased only one asset during the current year. It placed in service machinery (7-year property) on December 1 with a basis of $50,000. Calculate the maximum depreciation expense (ignoring Section 179 or bonus expensing) 10- Ilene rents her second home. During 2009, Ilene reported a net loss of $15,000 fr
Taxation: Court opinion, Series EE bond interest, child tax credit, casualty loss, Sec 1231 netting, maximum depreciaiton
3- Jaime recently found a "favorable" trial level court opinion directly on point for her tax question. Which trial level court would he prefer to have issued the opinion? 4- Sam saved diligently for his college education by putting part of his pay into U.S. Series EE saving bonds. Sam purchased the bonds for $6,500, and this
Should a company's accounting department be centralized or decentralized? Why? The first sentecse should be a thesis which answers the question directly.
Explain the impact of occupational fraud and abuse on the company. Explain the four potential corruption schemes to be aware of within the company?
An individual taxpayer sells some used assets in a garage sale. Why are none of the proceeds taxable in most situations? What usually constitutes evidence of a "sale" of property for tax purposes? What is the difference between a "worthless security" and "1244 stock"? How is it possible to have a casualty gain from t
Assume that you are a CPA working for an accounting firm. Please respond to the following: Discuss the advice you give to your clients regarding: o Planning for Retirement o Planning for Children's Education o Disability Planning
How can undetected fraud or accounting abuse affect a company?