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Detailed Accounting Assignment Tutorial

5.6A During the current year, Black Corporation incurred the following expenditures which should be recorded either as operating expenses or as intangible assets: A. Expenditures were made for the training of new employees. The average employee remains with the company for five years, but is trained for a new position eve

Tax/S Corp

Sam, Joe, and Lisa are equal shareholders in Friends, inc., and S corporation. in the conditions listed below, how much income should each report from Friends, inc. under both the daily allocation and the interim closing books allocation method. There should be 6 answers. Period

Accounting: Five Tax Questions

1. What is the purpose of Code Sec. 351 in regard to transfers of corporations? 2. What tax years are available to corporations? How do the options differ from other forms of business organizations? 3. What are the differences in the treatment of capital gains and capital losses of corporations and of individuals? 4. Su

Payroll Accounting Analyzing and Journalizing Payroll Transactions

The employees of Donnelly Music Company earned a total wages $4,690 during January. The total amount is taxable under FICA, FUTA, and SUTA. The state contribution rate for the company is 3.6%. The amount withheld for federal income taxes is $685. Journalize the payments of the monthly wages, and record the payroll taxes.

Corporate Tax/Partnerships

Lincoln, inc., Washington, inc, and Adams, inc. form presidential suites partnership on Feb. 15 2010. Now, presidential suites must adopt its required tax year-end. The partners year-ends, profits interts and capital interest are reflected below. Given this information, what tax year-end must Presidential Suites use and what rul

Corporate tax/S Corporations

XYZ Corp.(an S Corp) is owned by Jane and Rebecca who each 50% shareholders. At the beginning of the year, Jane's basis in her XYZ stock was 40,000. XYZ reported the following information for 2010: Sales revenue: 730,000, COGS (200,000), Long-term capital gain 8,000, Dividend income 5,000, tax-exempt interest 3,000, salary of

Three Economics Questions

Chapter 15 question 14 What are some of the Limitations of the national income accounts in how they represent our standard of living? Chapter 16 question 5 Why is frictional unemployment important to have in any economy? Chapter 16 question 6 Explain why hyperinflation has such a devastating impact on economies.

Payroll Accounting Analyzing and Journalizing payroll transaction for Cal Ruther

Cal Ruther, an employer, is subject to FICA taxes, but exempt from FUTA and SUTA taxes. During the last quarter of the year, his employees earned monthly wages of $8,500, all of which is taxable. The amount of federal income taxes each month is $1,040. Journalize the payments of wages, and record the payroll tax on November 30.

Product costs: Components of unit products under absorption vs variable costing

Your CFO attended an industry trade show and looked forward to sitting through one of the seminars offered that was titled "Why is it so important to know your product's costs?" Unfortunately, she missed this seminar. This is a very important topic that you plan to discuss with her yourself. Prepare notes for your meeting w

Intel Corporation: variable costing or absorption costing?

Intel Corporation is the world's largest manufacturer of computer processor chips. The Company's manufacturing processes are highly automated, so most manufacturing costs are fixed. You can access the company's most recent annual report in the Investor Relations section of its web site Its most recent operating in

Two Methods of Costing Employed

Describe at least two method of costing employed by the Tyco International. (If you are unable to locate specific information on-line, feel free to infer, as long as you discuss the approach in sufficient detail). Was this approach adequate, or did it contribute in any way to the firm's subsequent problems (financial scandal)?

Goal of not for profit organization. Return on investment in landscaping business

1. The main goal of all businesses is to make profit. How do the not-for-profit organizations set their goal? 2. If you were going to start your own business in a service industry such as a Landscaping business, what type of return on investment would you expect after the first year? What about for the second year? Please ju

Tax Questions... Multiple Choice

1. For federal tax purposes, royalty income not derived in the ordinary course of a business is classified as: Active income Portfolio income Passive income None of the above 2. Which of the following is not an example of a nontaxable like-kind exchange? An ice cream making machine for

Singular Corp.: Return on Assets

See the attached file. 1 . Singular Corp. has the following income statement data: 2006 2007 Sales $ 500,000 $ 700,000 Gross profit 161,300 205,000 Selling and administrative expense 45,200

Treatment of Intangible Assets

It has been argued on the grounds of conservatism that all intangible assets should be written off immediately after acquisition. Discuss the accounting arguments against this treatment.

Journal Entries and Treasury Stock Transactions

See the attached file. A company reported the following stockholders' equity on January 1 of the current year: Common stock, $10 par, 1,000,000 shares authorized, 400,000 shares issued ------------------------- $4,000,000 Paid- in capital in excess of par, common------------------- 1,200,000 Retained earnings---------

Indirect methods to reconstruct income

Please read and give your thoughts on this. The use of indirect methods to reconstruct income by the IRS is limited by Code Sec. 7602(e), which prohibits financial status or economic reality techniques to determine the existence of unreported income unless there is another reasonable indication of unreported income. Forensic

Cash Transaction Account Analysis for Certain Tax Filers

Please read and give your thoughts on this. For an individual who files a Schedule C or F with their Form 1040, it is possible to prepare a cash transaction account analysis to determine the understatement of income. A cash transaction account analysis is an analysis of all of the cash received by the individual and all of th

IRS Net Worth Method to Estimate Income

The net worth method is an indirect balance sheet approach to estimating an individual's true income. To use the net worth method it is necessary to calculate the individual's net worth at the beginning and ending of the period in question. Starting with taxable income the methodology requires the addition of nondeductible livin

Economics - Macrotown and Microtown Case Study

The countries of Macrotown and Microtown have the production possibilities tables for sheep and hogs shown in the tables below. Without trade Macro would produce at Alternative D and Micro would also produce Alternative D. Note that the costs of producing sheep and hogs are constant in both countries. Macrotown Production

Answer case questions: 5-36, 5-37, 6-49, 6-53

See attached file. Assistance answering the questions and show all work in MS Excel or Word. 5-36 Special-Order Decision 5-37 Unit Costs and Total Costs 6-49 Hotel Pricing and Use of Capacity 6-53 Use of Available Facilities 5-36 Special-Order Decision Belltown Athletic Supply (BAS) makes game jerseys for athlet

Depreciation deductions in income tax returns

1A. Mickey Gillespie is the controller of Print Technologies, a publicly owned company that the company is experiencing financial difficulties and is aggressively looking for ways to cut costs. Suzanne Bedell, the CEO, instructs Gillespie to lengthen from 5 to 10 years the useful life used in computing depreciation on cert

For the year ended December 31, 2010, Transformers Inc. reported the following: Net income $ 60,000 Preferred dividends declared, $10,000 Common dividend declared, $2,000 Unrealized holding loss, net of tax; $1,000 Retained earnings $80,000 Common stock, $40,000 Accumulated Other Comprehensive Income, Beginning Balance 5,000 What would Transformers report as its ending balance of Accumulated Other Comprehensive Income?

5. (TCO C) For the year ended December 31, 2010, Transformers Inc. reported the following: Net income $ 60,000 Preferred dividends declared, $10,000 Common dividend declared, $2,000 Unrealized holding loss, net of tax; $1,000 Retained earnings $80,000 Common stock, $40,000 Accumulated Other Comprehensive Income, Beginn

Cost Accounting in Excel

Please help complete the attached exercise Mitsu Corporation produces two types of flat screen televisions. The standard televisions are designed for durability. The company recently began producing the higher quality, high grade model to appeal to dedicated watchers. Since the introduction of the high grade product, profi

Percentage Change in the Demand for Foreign Travel

If there has been a 10 percent increase in consumer income between two periods, what was the percentage change in the demand for foreign travel? For tobacco products? For flour? Use the income elasticity values in the table below. Commodity Income Elasticity Wine (

Real Estate and Taxes...

Real estate is the cornerstone of many investment portfolios. If the government took away the tax benefits, do you think people would still invest in real estate? Why or why not?

Leeds Architectural Consultants: Predetermined Overhead Rate

Leeds Architectural Consultants began operations on January 2. The following activity was recorded in the company's Work in Process account for the first month of operations: Work in Process Costs of subcontracted work 230,000 To completed projects 390,000 Direct staff costs 75,000 Studio overhead 120,000 Leeds Arc

Duke Plumbing and Wallpaper Company is a corporation that has been in business since 1990. During the current year, it has the following property transactions: a. A warehouse purchased in 2000 for $200,000 is sold for $180,000. Depreciation taken on the building to date of sale totals $62,000. b. Wallpaper that cost $60,000 becomes obsolete when a new type of wallpaper is developed. Duke is unable to sell the wallpaper and ends up throwing it in the trash. c. Two of Duke's service trucks collide in the parking lot, destroying both trucks. The older truck cost $18,000 and had an adjusted basis of $5,000. Its fair market value of $9,000 is reimbursed by Duke's insurance company. The newer truck was purchased 3 months earlier for $22,000. It has a fair market value of $18,000, which is reimbursed by Duke's insurance company. d. Plumbing equipment purchased in January for $6,000 is sold in November for $4,000. The equipment was advertised as being the easiest of its kind to use in installing new plumbing fixtures. However, it is so complicated to operate that none of Duke's employees can figure out how to use it, and Duke decides it is easier to do the work the old-fashioned way. e. Duke's computer system becomes obsolete and is sold for $1,500. Duke paid $15,000 for the system 4 years earlier and has taken $11,500 in depreciation on the system as of the date of sale. f. Because the 2 service trucks that were destroyed (in part c) have to be replaced, Duke decides to sell its other service truck and buy 3 new trucks. The third service truck cost $19,000 two years earlier and has an adjusted basis of $14,000. Duke receives $15,000 from the sale of the truck. g. An antique plumbing plunger for which Duke had paid $4,000 and which was fully depreciated is sold for $7,000. h. Duke decides not to replace the warehouse it sold in part a. The office building it erected in 2001 at a cost of $140,000 to service the warehouse is no longer of any use and is sold for $162,000. The office building has an adjusted basis of $122,000. For each of these transactions, determine the gain or loss that must be recognized on the transaction and the character of the gain or loss. Determine the effect of all the transactions on Duke's taxable income for the year.

Duke Plumbing and Wallpaper Company is a corporation that has been in business since 1990. During the current year, it has the following property transactions: a. A warehouse purchased in 2000 for $200,000 is sold for $180,000. Depreciation taken on the building to date of sale totals $62,000. b. Wallpaper that