Share
Explore BrainMass

Accounting

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

Explanation of PERT-CPM, Decision Analysis, and EOQ

1. PERT & CPM Widgetco is about to introduce a new product. One unit of this product is produced by assembling subassembly 1 and subassembly 2. Before production begins on either subassembly, raw materials must be purchased and workers must be trained. Before the subassemblies can be assembled into the final product, the f

Are ratios that Bankers and Bondholders want similar if so why

Please comment for the following questions: 1. Are ratios that Bankers and Bondholders want similar if so why? 2. Are common sized trend income statements more valuable for a review than a single period; if so why? 3. If you identify an unusual item based upon % what should you do?

ACC - Exercise 2.44 Absorption vs Variable costing

Exercise 2.44 (ignore 2.40) 2.44 Activities Amounts Units produced 120,000 units Units sold 104,000 units Direct material $780,000 Direct labor 450,000 Manufacturing overhead (unit, variable) 180,000 Manufacturing overhead (facility, fixed) 180,000 Selling and administrative (unit, variable) 140,000

Answer

See attachment Problem 15-14 - Refer to problems at the end of the chapter for details and instructions: Use the template to complete the problem : Winston Sporting Goods Solution: Retail Price per Share $18 a) Spread ($) = # of shares 600,000 Spread (%) = Company Proceeds $16.50 Total Val

Component Technologies: Adding FlexConnex Capacity

Please see attached assignment Case 12-4: Component Technologies, Inc.: Adding FlexConnex Capacity In 2002, Component Technologies, Inc. (CTI) manufactured components, such as interconnect components, electronic connectors, fiber-optic connectors, flexible interconnects, coaxial cable, cable assemblies, and interconnect

Interviewing Techniques

***Please take a moment to read the article and respond with your thoughts.**** Interviewing Techniques: Tips from the Pros Ask the right questions to assess the skills and attitudes of job candidates. EXECUTIVE SUMMARY A skillful interview consists of *Preparation. Collect information about the job you're trying t

Financial accounting and sharing information with employees

Clearly the employees in the operations department of a company would benefit from feedback on the quality and process times of the work they were doing to suggest where they could make improvements. Identify the role, if any, for sharing financial information with these employees to help them in their efforts to improve qua

Congress uses the Tax Code to influence our behavior. Examples include deductions for mortgage interest and property taxes to steer people to home ownership instead of renting. Or, tax credits for purchasing products that use alternative energy are another incentive. Likewise, deductions for charitable contributions encourage charitable donations.

Congress uses the Tax Code to influence our behavior. Examples include deductions for mortgage interest and property taxes to steer people to home ownership instead of renting. Or, tax credits for purchasing products that use alternative energy are another incentive. Likewise, deductions for charitable contributions encourage ch

Develop a company and determine what it will produce and sell

Develop a company and determine what it will produce and sell. The requirement for this company is that it be a high-end, special-order type of manufactured product. Develop a list of inputs along with their associated costs, such as labor, materials, and overhead. You can research this information, make it up, or do a combin

Compare and contrast descriptive and injunctive norms

1. Q: Compare and contrast descriptive and injunctive norms, and give an example of each. A: 2. Q: Explain why, in even informally organized groups, role differentiation still occurs. A: 3. Q: Edwina is the only woman in a work group. She has many good ideas, but the group members ignore them. How would expectation

Classification of manufacturing costs as direct or indirect for automobiles. Classificaiton of costs as unit level, batch level, product sustaining, or business sustaining. Calculation of equivalent units of production.

1. Classify each of the following manufacturing costs as direct or indirect for automobiles: a. insurance on manufacturing equipment b. cost of steel plates used in making an automobile body c. wages of assembly workers d. salaries of plant personnel e. cost of tires f. overtime premiums paid to assembly workers g. depr

Business expenditures deductible or non deductible

Which of the following trade or business expenditures of Arrow Inc. are deductible on its current year tax return? If an expenditure is not deductible, explain why it is not a valid deduction Expenditures Salaries and wages to employees $400,000 Purchase of new office building

Tax deduction for Salary & Wage Expenses

For the current month, Johansen Rubber Cement Co. incurred payroll expenses as follows: Gross salaries and wages $675,000 Payroll Taxes: OASDI (Social Security Tax) employer's share $41,850 HI (Medicare tax)--employer's share $9,788