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Alternative minimum tax system differ from the regular tax system

How does the alternative minimum tax system differ from the regular tax system? How is it similar? Why did Congress implement the alternative minimum tax system? The starting point for computing alternative minimum taxable income is regular taxable income. What are some of the adjustments and preferences to regular taxable incom

Federal Income Tax for Investors

What is the federal income tax owed by an investor in the 35 percent income tax bracket (15 percent tax rate on long-term capital gains and dividend income)? a. Megan sold stock A for a short-term capital gain of $5,500; sold stock B for a short-term capital loss of $2,100 b. Margaret sold stock A for a short-term capit

Incremental after-tax cash flows

Company Z is considering upgrading their old machine with a new machine. EXISTING MACHINE: Cost = $100,000 Purchased 2 years ago Depreciation using MACRS over 5-year recovery schedule Current Market Value = $105,000 Five year usable life remaining 40% tax rate on ordinary and capital gains Earnings before Depreciatio

Fundamental Accounting Principles II

Could you please provide the solution for these three problems (18-10, 18-13, and QS 20-6). Question 1: (2 points) Exercise 18-10: Cost of goods sold computation L.O. C6, P1 Compute cost of goods sold for each of these two companies for the year ended December 31, 2009. (Omit the "$" sign in your response): Compute

Income from flow through entities

Dominique and Terrell are joint owners of a bookstore. The business operates as an S corporation. Dominique owns 65% and Terrell owns 35%. The business has the following results in the current year. Revenue $1,500,000 Business expenses 750,000 Charitable Contributions 50,000

Accounting

Wilde Home & Garden is organized into three departments. The following sales and cost data are available for the prior year: Dept A Dept B Dept C Total Sales $270,000 $855,000 $910,000 $2,035,000 Less: VC 110,000 520,000 710,000 1,340,000 CM 160,000 335,000 200,000 695,000 Less: FC 70,000 90,000 95,000 255,000 Profit 90,

Accounting

2. Reef office supplies is interested in estimating the cost involved in hiring new employees . The following information is available regarding the costs of operation the human resource department of reef office supplies in may when there were 60 new hires May Staff salaries 33000 Manager salary 8000 Office supplies 300

Compounding Frequency and Present Values

A. Table Factor X, Future Value $X Present Value Rate Time Compounding Frequency Table Factor Future Value a. $5,000 12% 2 yrs Annual b. $5,000 12% 2 yrs Semiannual c. $5,000 12% 2 yrs. Quarterly d. $5,000 12%

Variable Costing Contributions

Need help preparing a contribution format variable costing income statement for each quarter, and how to reconcile the absorption costing and the variable costing net operating income figures for each quarter... file has better formatting. income statement for the first two quarters first quarter second quarter sales $480,00

Capital Gains and losses

46) Jake purchased a $200,000 crane for his construction business. He sold the crane for $145,000 after taking $110,000 of depreciation. What are the nature and the amount of gain or loss on the sale? On what tax form would the gain or loss be reported? 50) Davidson Industries, a sole proprietorship, sold the following as

budgetary process more beneficial to avoid any negative impact

1. How can a budget affect company morale? How could the budgetary process be made more beneficial to avoid any negative impact a budgetary concept can portray? 2. How does contribution margin differ from controllable margin in a responsibility report for a profit center? How do controllable costs and non-controllable costs

Differences Between the Components of Taxable Income

What are the differences between the following components of taxable income? Provide at least one example of each. o Deductions for AGI and deductions from AGI o Gross income and AGI o AGI and taxable income o Tax deduction and tax credit o Personal exemption and dependency exemption 385 words plus form to give a

Profit and Break-Even Analysis of Bed and Breakfast Business

Phil and Carol eloped (at 59 and 46) to New Mexico and then told the kids they were moving there permanently. After 5 years in downtown Albuquerque, Carol made one of her frequent flights east to visit family. She returned to find that Phil had rented out a bedroom, declaring they were in the "Bed and Breakfast" business. In

Cost Accounting for Morrisey and Brown, Ltd.

Morrisey & Brown, Ltd., of Sydney is a merchandising firm that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: MORRISEY & BROWN, LTD.

P7-7 Flexible budget for factory overhead

P7-7 Flexible budget for factory overhead Presented below are the monthly factory overhead cost budget (at normal capacity of 5,000 units or 20,000 direct labor hours) and the production and cost data for a month. The predetermined overhead rate is based on normal capacity. Factory Overhead budget Fixed cost Depreciation o

Production budgets, manufacturing budgets and forecast of number units

Can you assist me with sales budget and production budgets and manufacturing budgets in detail? Sales and Production Budgets: The marketing department of Smith Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th Quart

Fixed and Variable Cost Analysis

Able Company and Baker Company are competing companies that sell a product at the same price. Both companies are operating above the break-even point and have similar total profits. Able Company's costs are mostly variable, whereas Baker Company's costs are mostly fixed. In a time of increasing sales which company will tend t

Book Value of common stock and preferred: Cleveland Company

Cleveland Company reports the following information as of 12/31/2012: -10% cumulative preferred stock, par value $100, One-year of dividends in arrears; 20,000 shares authorized; issued, 10,000 shares; $1,000,000 -Common stock - authorized 500,000; 40,000 outstanding

Taxation: Office in Home, Casualty loss, Hobby loss

Problem 39 David is a college professor who does some consulting work on the side. He uses 25% of his home exclusively for the consulting practice. He is single and 63 years old. His AGI (without consideration of consulting income) is $45,000. Other information follows: Income from consulting business $4,000 Consulting

Understanding Management Accounting

Scapens, R.W (2006) 'Understanding Management Accounting Practices'. The British Accounting Review, 38(1) pp.1-30. What are the achievements of the Burns and Scapens frame work for studying management accounting change? What are the limitations and extensions of the study? Mention some processes shaping the management accou

Marginal costing

Rapid Auto has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change-related services represent 63% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 37% of its sales and provides a 60% contribution margin rati

Fluctuating numbers

The benefit of vertical analysis is certainly the benefit of comparing companies of two different sizes. Looking beyond the numbers and focusing on the changes in the numbers can provide a seasoned analyst some very useful information about the company operational effectiveness. The usefulness tends to breakdown when you c

Relevant and Irrrelevant costs

Skanda Inc. manufactures table lamps, and it has traditionally made its own lampshades for its lamps. It computes the cost of manufacturing each lampshade as follows: Direct materials $4.00 Direct labor 6.00 Applied variable overhead 50% of direct labor cost Skanda currently manufactures 40,000 table lamps and l

Accounting101

1. If during the current accounting period the company's assets increased by $24,000 and equity increased by $5,000, then how did liabilities change? A. Increased by $29,000 B. Increased by $24,000 C. Decreased by $5,000 E. Decreased by $19,000 F.Increased by $19,00

Process for Developing the Common Size Statements

Describe the process for developing the common size statements and illustrate, using a company of your choosing, the development and interpretation of this analysis. Once the common size statements are developed, what comparisons (of the metrics in the common size statements) seem relevant in generating meaningful conclusions? D