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Income Tax: Qualified Deferred Compensation (When and for Whom is it used?)

Questions to be answered are: 1) What are the four basic requirements for a plan to qualify under section 401(a) of the I.R.C.? (2) What is meant by the term 'qualified deferred compensation' for income tax purposes, and for whom is it most often used? (3) At what time is the employer allowed to take a deduction for i

Operating income, processing products further

Faulk Company has a joint process, which produces three products, X, Y, and Z. Each product may be sold at spli-'off or processed further and then sold. Joint processing costs for a year amount to $30,000. Other relevant data are as follows: Separabl

Comparison over 4 years, absorption and variable costing

The Balakrishnan Corporation began business on January 1, 2000 to produce and sell a single product. Reported operating income figures under both absorption and variable costing for the first 4 years of operation are as follows: Absorption costing 2000: $80,000 2001: 70,000 2002: 50,000 2003: 40,000 Variable costing 2

School departmental allocation of computer costs: budgeted and actual

Budget formula = $100,000 fixed costs monthly + $200 per hour of computer time used. Based on long-term usage, the fixed costs were allocated on a lump-sum basis, 30% to business and 70% to engineering. 1. Show the total allocation if business used 210 hours and engineering used 390 hours in a given month. Assume that the act

Price per Unit for Special Order

Chechny business has received one time special order for 1,000 units. Producing the order will have no effect on production and sales of other units. They buyer's name will be stamped on each unit, at a costs of $2,000. Normal cost data, excluding stamping, as follows: Direct materials..............................$10 per un

Define Contributing Plan

(1) A defined contributing plan provides for seven year vesting schedule. Fred Ziegler completes the following service Year Hours of Service 2002 1,000 2003 3

Scott Rothstein Fraud Case of Pertinent Facts

Describe the Scott Rothstein fraud case to organize the pertinent facts and issues you've found in your research. about 600 words, five references Starts with.... The fraud case affected several investors who claim that they have lost fortune in the massive scam that was brainwork of Scott Rothstein. Rothstein, along

Change in Operating Income

The Clemson Company reported the following results last year for the manufacture and sale of one of its products known as a Tam. (chart attached) Clemson Company is trying to determine whether or not to discontinue the manufacture and sale of Tams. The operating results reported above for last year are expected to contin

Behr Paint Company: Tools to improve its Management Accounting Systems

Behr Paint Company manufactures and sells multiple lines of paints in various colors. Recently, with the introduction of a number of new products, management has sensed that some cost characteristics of the production process have changed. First, some of the new products require more set up time between production runs. Certa

Managerial Accounting. Cost Accounting. Budgeting

1. Use the following information to complete A, B, and C. Laboe Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 2,900 tenant-days, but its actual level of activity was 2,940 tenant-days. The kennel has provi

Cost accounting questions for units

1. Total work-in-process during the period is the sum of the beginning work-in-process inventory and the total manufacturing costs incurred during the period. True False 2. The variable cost per unit is defined to be constant despite changes in the volume of activity within the relevant range. True False 3. Per

Variable costing/Absorption costing/Breakeven

ABC, Inc. is a newly organized manufacturing business this year. The following company's costs and expenses are: Sales price per unit $55 Manufacturing costs: Direct materials Direct labor Variable Manufacturing overhead Fixed Manufacturing overhead Period expenses: Variable Selling an

Solving for unknowns in financial accounting

J Income: $280,000 Revenue: $_______ Invested capital: $______ Return on sales: 7% Capital turnover: 4 Rate on return on invested capital: _____% Cost of capital: 16% Economic profit: $_____ K Income: $_____ Revenue: $_______ Invested capital: $3,000,000 Return on sales: 4% Capital turnover: _____ Rate on retur

Financial Accounting: Bank reconciliation, cash controls, practice exam problems

Osage farm supply had poor internal control over its cash transaction. Facts about the company's cash position at nov 30 are described below. The accounting records showed a cash balance of $35,400 which included a deposit in trainsit of $1,245. The balance indicated in the bank statement was $20,000. Included in the ban

Quick and Current Liquidity Ratios, DuPont Ratio, Profit Margin

GE does business in Puerto Rico. Compute the quick and current liquidity ratios, the DuPont ratio, profit margin, asset utilization, and financial leverage for GE. Discuss how measurement conventions (IASB and FASB) affect presentations. If your chosen company uses the cash basis of accounting, how would that differ from the

Financial Accounting: Equity transactions: Journal Entries: Treasury Stock

On January 1, 2010, the stockholders equity section of Lopez Corporation shows: Common stock ($5 par value) $1,500,000; paid-in capital in excess of par value $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 30,000 shares for cash at $15 per sh

Overhead cost allocation

Please help with this problem. Assume a builder is constructing three houses simultaneously. The direct materials and direct labor costs for each house are shown below: House 1 House 2 House 3 Direct Materials $ 140,000 $ 70,000 $ 90,000 Direct Labor 210,000 130,000 60,000 Overhead Indirect cos

Assess impact of transactions on accounting equation components

Using the column headings provided below, show the effect, if any, of the transaction on each financial statement category by indicating whether it is an addition (+) or subtraction (-) and showing the amount in the appropriate column. Do not show items that affect net income in the retained earnings column. You should assume th

Redbird Corporation Taxable Income and E&P Calcluation

Redbird Corporation, a calendar year taxpayer, receives dividend income of $250,000 from a corporation in which it holds 10% interest. Redbird also received interest income of $35,000 from municipal bonds. (The municipality used the proceeds from the bond issue to construct a library). Redbird borrowed funds to purchase the muni

Cost accounting: Acquatic Manufacturing

Can you help me get started on this assignment? Acquatic Manufacturing uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A, direct labor hours in Department B, and machine hours in Department C. In establish