1. Give a brief summary of economic costs (i.e. how are they different from accounting costs). In the short-run, why might a firm still operate even when there is a loss. 2. Read the following short article: Vargas, L. (2001). ââ?¬Å"Maquiladoras: Impact on Texas Border Cities,ââ?¬Â? in The Border Economy, Federal R
BrainMass Solutions Available for Instant Download
Is there any correlation between cheating in Graduate School and the increase in dishonesty in business?
The following information is from Binghamton Film Corporation's financial records. Month Sales Purchases April $ 72,000 $ 42,000 May 66,000 48,000 June 60,000 36,000 July 78,000 54,000 Collections from customers are normally 70 percent in the month of sale, 20 percent
Can you help me get started on this assignment? 1. Research the most common tax loopholes used by corporations and partnership to avoid paying federal income tax. Discuss two (2) loopholes identified and what strategies you would recommend to the federal government for closing these loopholes. 2. Evaluate whether or not the
In the following situations and indicate whether the organization should recognize the described contributed services as revenue (offset by a corresponding expense). Briefly justify your response. 1.Camp Chi-Wan-Da, a summer camp for disadvantaged youth, benefits from the services of four physicians, each of whom spends two
Milton Manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are as follows: Maintenance $70,000 Materials handling 30,000 Setups 25,000 Inspection 50,000 Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct lab
Capius Corporation issued 2000 bonds in 1000 individual denominations. Each bond has twenty detachable warrants. The bonds and warrants were sold at 110. At the time the bonds were issued each warrant had a market value to one percent of the face value on one bond. Capius will account for this transaction as: A) Bond pay
$30,000 was allocated to overhead costs. The cost of labor is $3 for product A and $3.50 for product B. Total number of A produced is 3000 and B produced is 3000. Direct Material cost for A is $10 and for B is $10.50.The overhead is charged on basis of labor cost. Out of the $30,000 allocated to overhead costs, $10,000 is rela
A farmer grows two crops: lettuce and beans. The farmer uses three inputs: labor, seed and fertilizer. The past prices and the quantities of each are given in the following tables: Physical Quantities Past
A tax accountant is examining his productivity. In 1996 he did 300 tax returns in 1400 hours. In 1997 he did 250 tax returns in 1200 hours. What was the percentage increase in productivity from 1996 to 1997?
Why are scatter diagrams useful? What are some difficulties in creating scatter diagrams? Give some examples of using a scatter diagram. Info on a scatter diagram: The Scatter Diagram shows how the values of two variables relate to one another. Is there a relationship and can one variable be used to predict another variable?
1. On November 4, 2008, Ezra purchased 2,000 shares of DDD stock for $12,000. On June 12, 2010, Ezra sold the 2,000 shares for $9,000. On June 30, 2010, he purchased 1,000 shares of DDD stock for $5,000. What is Ezra's realized gain or loss and his recognized gain or loss on the June 12, 2010 sale? What is his basis in the st
Sean is 42 years old. His employer provides him with $300,000 of group term life insurance as a fringe benefit. The policy costs his employer $40 per month. For tax purposes, how much income does Sean have if a. the benefit is provided on a nondiscriminatory basis? b. the benefit discriminates in favor of key employee
Bianca Bicycle Company manufactures mountain bikes with a variable cost of $208. The bicycles sell for $390 each. Budgeted fixed manufacturing overhead for the most recent year was $3,080,000. Planned and actual production for the year were the same. 1. Production 20,000 units Sales 23,400 units 2. Produ
Personal Income Tax and Revenue Forecasting. When the Soviet Union bloc broke up in the early 1990's, the Republic of Vadar declared its independence. As the country established a monetary system, democratic processes, and a controlled fiscal system, the early problems of hyperinflation, unemployment, and declining standards
Please compare and contrast short-term and long-term disability income plans.
You are concerned about the company's largest division - luxury - because cost has been increasing much faster than revenue for the last 3 years. However, the head of the division, who reports directly to the CEO, believes that increased cost is simply a result of internal charge backs for what he terms as "overhead." On many occasions, he has stated that "IT and HR are hiring too many people and driving up my costs." Discuss with the CEO how the structure of the company impacts the cost of the luxury division. Be sure to discuss how changes could be made to incentivize the head of the three areas to work together to control costs.
You are concerned about the company's largest division - luxury - because cost has been increasing much faster than revenue for the last 3 years. However, the head of the division, who reports directly to the CEO, believes that increased cost is simply a result of internal charge backs for what he terms as "overhead." On many oc
1) Aspen company produces widgets. August production costs are below: Widgets produced 80,000 Direct material (variable) $20,000 Direct labor (variable) $40,000 Supplies (variable) $20,000 Supervision (fixed) $30,000 Depreciation (fixed) $25,000 Other (fixed) $5,000 Total
Emily and Richard are interested in purchasing a large 140-unit apartment complex using a partnership. They are wondering the general advantages and disadvantages of partnership formation, as well as the tax issues of partnership. Advise Emily and Richard about forming a partnership. What are at least 2 taxation issues th
A local ophthalmologist's advertising campaign included a certificate for a free radical keratotomy for the lucky winner of a drawing. Ahmad held the winning ticket, which was drawn in December 2007. Ahmad had no vision problems and was uncertain what he should do with the prize. In February 2008, Ahmad's daughter, who lives with his former wife, was diagnosed with a vision problem that could be treated with either prescription glasses or a radial keratotomy. The divorce degree requires that Ahmad pay for all medical expenses incurred for his daughter. Identify the relevant tax issues for Ahmad. 2. Julia owns a principal residence in California, a condo in New York City, and a houseboat in Florida. All of the properties have mortgages on which Julia pays interest. What are the limitations on Julia's mortgage interest deduction? What strategy should Julia consider to maximize her mortgage interest deduction? 3. Jerry purchased a personal residence from Kim. In order to sell the residence, Kim agreed to pay $3,000 in points related to Jerry's mortgage. Discuss the deductibility of the points. 4. Even though Sylvia is a full-time employee at a major software developer, she has never given up her love for pottery. For many years, she has spent evenings and weekends working to develop a profitable pottery business by making original pieces to sell to the general public. How should Sylvia treat the income or loss generated by her pottery venture? What are the tax issues? 5. Laura owns an apartment building and videocassette and DVD rental business. She participates for more than 500 hours in the operations of each activity. Are the businesses active or passive? Explain.
1. A local ophthalmologist's advertising campaign included a certificate for a free radical keratotomy for the lucky winner of a drawing. Ahmad held the winning ticket, which was drawn in December 2007. Ahmad had no vision problems and was uncertain what he should do with the prize. In February 2008, Ahmad's daughter, who lives
The heating division of ITA International produces a heating element that it sells to its customers for $42 per unit. Its variable cost per unit is $19, and its fixed cost per unit is $10. Top management of ITA International would like the heating division to transfer 15,000 heating units to another division within the company a
Accounting 350 - Computer Spreadsheet Assignment #2 (Chapter 7) Dusty Horseman Corporation provides the following aging schedule of accounts receivable at December 31, 2011. The balance in the Allowance for Doubtful Accounts was $175,000 at January 1. During the year, $159,000 of bad debts were written off. Classificat
Bodin Company budgets on an annual basis. The following beginning and ending inventory levels (in units) are plannned for the year 20x1. One units of raw material are required to produce each unit of finished product. January 1 December 31 Raw material 37,000 48,000
See Attached file for proper format of tables. Bannister Case Bannister manufactures tennis rackets and uses a standard costing system. The master budget income statement for April was based on the expectation of producing 10,000 units and selling 12,000 units. The budgeted sales price was $16 per unit, and total budgete
Given that Dr. Washington wants to make stocks a major part of his investment portfolio, you decide to focus on how to analyze stocks. You decide to use a large U.S. industrial company, to demonstrate how to analyze stocks. The research department has provided you with the following information regarding this company. This
Please help with the following accounting problem. What is Gigantic Corporation's net tax liability if its taxable income is $325,000 and it has a general business credit of $125,000? Margolin Corporation has regular taxable income of $120,000. It has positive adjustment of $90,000, preference items of $50,000 and negati
The Bakers Dozen Restaurant is considering opening a new location. It has considered many factors and identified the ones that are most important. Two locations are being evaluated based on these factors, using factor rating. Each location has been evaluated relative to the factors on a 5-point scale. These numbers are shown her
The University book store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The University Book Store engaged in the following transactions for 2012. Sales tax of 7% is collected on all sales. 1. Book sales, not including sales tax amounted to $275,000.00 cash. 2. Cash sales of miscellaneous items in 2012 were $150,000.00, not including tax. 3. Cost of goods sold amounted to $210,000.00 for the year 4. Paid $130,000.00 in operating expense for the year 5. Paid the sales tax collected to the State agency. Required: a. What is the total amount of sales tax the University book store collected and paid for the year? b. What was the University Book Store's net income for the year?
The University book store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The University Book Store engaged in the following transactions for 2012. Sales tax of 7% is collected on all sales. 1. Book sales, not including sales tax amounted to $275,000.00 cash. 2. Cash sales of mi
Please help with the following problem including accounting. Provide a sector/industry analysis and narrative to start a health food cafe that serves whole food and organic food. Provide at least 300 words in the solution. Please also include sources as part of the solution.
What are the differences (stock, risk, economic, etc.) between an all-cash and all-stock transaction? What are the pros and cons of each? Can you cite an example of either an all-stock or all-cash merger/acquisition? How about more complex transactions -- can we think of examples?