A) Raquel transferred $100,000 of stock to a trust, with income to be paid to her nephew for 18 years and the remainder to her nephew's children (or their estates). Raquel named a bank as independent trustee but retained the power to determine how much income, if any, will be paid in any particular year. Is this transfer a co
2. State two generally accepted accounting principles that relate to adjusting the accounts. 3. Rick Marsh, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Marshâ?? law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why?
1) Given that the Alternative Minimum Tax can apply to all forms of businesses, what tax planning strategies do you think need to be utilized? 2) Why do you answer this way?
Do you think online trading platforms have helped investors make money? Does it help to have access to your 401k or brokerage statement all the time? How does this compare to when people in the 1940's, 50's and maybe into the early 60's would keep stocks they bought in a safe deposit box in the bank and maybe hold those stock
Phil LaRue and Russ Small have decidied to form a partnership. Various plans for the division of net income are being considered. Complete the calculations.
Phil LaRue and Russ Small have decided to form a partnership. They have agreed that LaRue is to invest $16,000 and Small $24,000. LaRue is to devote full-time to the business and Small one half time. The following plans for division of income are being considered: a. Equal division b. In the ratio of original investments c. I
Daniel receives 400 shares of A&M Corporation stock from his aunt on May 20, 2009, as a gift when the stock has a $60,000 FMV. His aunt purchased the stock in 2002 for $42,000. The taxable gift is $60,000 because she made earlier gifts to Daniel during 2009 and used the annual exclusion. She paid a gift tax of $9,300 on the gift
6-After individuals become licensed in accounting, type typically must do what? A. Work for an auditing firm for 120 hours. B. Continue their education by acquiring CPE's. C. Become an Enrolled Agent with the IRS. D. Open a public practice in accounting. 9-If a company has changed accounting principles, the auditor will i
1.Plant assets are: tangible assets used in the operation of a business that have a useful life of more than one accounting period. current assets. held for sale. intangible assets used in the operations of a business that have a useful life of more than one accounting period. 2. An asset's book value is $36,000 on Ja
Discussion: What are the advantages and disadvantages of bond financing?
See the attached file for the tables. Using the data presented below, determine which figures should be inserted in the blank spaces Beginning Units in Process Units Started in production Units transferred to finished goods Ending units in process Equivalent units a) 600 8,000 8,600 ? ? b) 900 6,500 ? 400-
Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2010, follows: Net cash provided by operations...$98,000 Cost of goods sold.........................$310,000 Selling, general, and administrative expenses...$124,000 Accounts Payable....$90,000 Extraordinary loss from
Define what it is meant by internal control. Provide a minimum of three examples. It is the end of the accounting period, and your boss asks you to help determine the inventory balance to place in the company's balance sheet. Explain which physical quantities of inventory that you will include, and which you will exclude.
1. The FASB's standard-setting process includes, in the correct order: Exposure draft, research, discussion memorandum, SFAS. Research, exposure draft, discussion memorandum, SFAS. Research, discussion memorandum, exposure draft, SFAS. Discussion memorandum, research, exposure draft, SFAS.
1. Accounting standard setting has been characterized as a political process. Discuss this proposition giving an example. 2. Explain how management's discussion and analysis of its operations and liquidity may be helpful to investors. 3. In a recent press release, Foot Locker Inc. reported that its fiscal first-quarter net
Sacks manufactures embroidered jackets. The company prepares flexible budgets and uses a standar cost system to control manufacturing costs. The following standar unit cost of a jacket is based on the static budget volume of 14,000 jackets per month. -Direct Materials (3.0 sq. ft x $4.00 per sq.ft)
Hector P. Wastre,l a careless employee, left some combustible materials near an open flame in Salter Company's plant. The resulting explosion and fire destroyed the entire plant and administrative offices. Justin, the company's controller and Constance, the operations manager were able to save only a few bits of information as
Scenario You have recently obtained a new position as a manager of an international accounting firm, Smith, Lindsey, and Lueders, CPA (SLL). SLL is primarily an auditing firm. Part of your duties will be to analyze the current state of accounting with an emphasis on the international environment. An additional responsibility
From the Internal Revenue Service website (www.irs.gov). Click on the "Business" tab, then the "Corporations" link. Find the link to "S Corporations" and read the information provided by the IRS. Answer the following question: Explain the reasoning behind the need for the S Corporation provisions in the IRS Tax Code and
As of March 11, 2007, Swanson Group, Ltd. had 300,000 shares of 10$ par value common stock authorized and 185,000 shares issued. There were 6,000 shares of treasury stock that had been purchased by the firm at an average cost of 12$. The market value of the stock on March 11, 2007, was 22$ a. how many shares of common stock
A) Someone in the 36 percent tax bracket can earn 9 percent annually on her investment in a tax-exempt IRA account. What will be the value of a one time $10,000 investment in 5 years? 10 years? 20 years? b) Suppose the preceding 9 percent is taxable rather then tax-deferred and the taxes are paid annually. What will be the
Yarman Inc. began business on January 1, 2008. Its pretax financial income for the first 2 years was as follows: 2008 $240,000 2009 560,000 The following items caused the only differences between pretax financial income and taxable income. 1. In 2008, the company collected $180,000 of rent; of this amount, $60,000 was
Question 1 Stacy purchased a stock last year and sold it today for $3 a share more than her purchase price. She received a total of $0.75 in dividends. Which one of the following statements is correct in relation to this investment? A. The dividend yield is expressed as a percentage of the selling price. B. The capital gai
Should Fair Value Accounting be required in the preparation of US GAAP financial statement? Included in your response should be a discussion of the definition of fair value accounting and the benefits and the disadvantages of the use of fair value accounting. Finally, you are required to draw a conclusion by answering the stated
Which of the following will not result in an increase in return on investment (ROI), assuming other factors remain the same? a. A reduction in expenses. b. An increase in net operating income. c. An increase in operating assets. d. An increase in sales.
Fixed cost per unit increases as activity decreases and decreases as activity increases. True or False
Which of the following costs at a manufacturing company would be treated as a product cost under the variable costing method? a) direct material cost b) property taxes on the factory bldg c) sales manager's salary d) all of the above
Imai Draperies makes custom draperies for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools. Overhead costs: Production overhead . . . . $240,000 Office expense . . . .
How much total overhead cost is expected to be allocated to unframed, steel, and wood frames? Unframed prints 80,000 units direct material print $12. Steel framed 15,000 units direct material print $16. Frame $4. Wood frame 7,000 units direct material print $20 frame $6 Matt Direct labor Unfra
ABC Corporation purchased new machinery for $600,000. It paid $60,000 down and financed the balance for 3 years at 10% interest. The equipment was put into service on January 1st, 2001. At that time, the useful life was estimated as 10 years with a $90,000 salvage value. Straight line depreciation method was selected for bot
1. Wages paid to the factory maintenance supervisor are considered an example of: Direct Labor - yes, Period Cost - yes Direct Labor - yes, Period Cost - No Direct Labor - no , Period Cost - yes Direct Labor - no , Period Cost - no 2. Machinery Depreciation on a manufacturi