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    On August 1, Hyde Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as "Asset A" and Wiggins is referred to as "Asset B." the following facts pertain to these assets Asset A Asset B Original Cost 96,000 110,000 Accum. depreciation to date 40,000 47,000 of exchange Fair Value at date of exchange 60,000 75,000 Cash paid by Hyde Inc. 15,000 Cash received by Wiggins 15,000 1. Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde and Wiggins. 2. Assuming the exchange lacks commercial substance, record the exchange for both Hyde and Wiggins

    On August 1, Hyde Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as "Asset A" and Wiggins is referred to as "Asset B." the following facts pertain to these assets Asset A Asset B Original Cost

    Castle Corporation Exercise

    On January 1, 2008, Castle Corporation had retained earnings of $550,000. During the year, Castle had the following selected transactions: 1) Declared cash dividends - $120,000 2) Corrected overstatement of 2007 net income because of depreciation error - $30,000 3) Earned net income - $350,000 4) Declared stock divide

    A key goal of tax planning is to legally minimize or defer taxes. This is done by focusing on key components of taxable income. How can timing strategies and income-shifting strategies be used to affect deductions for adjusted gross income (AGI), dependency exemptions, itemized deductions, and tax credits? Provide at least one example for each.

    A key goal of tax planning is to legally minimize or defer taxes. This is done by focusing on key components of taxable income. How can timing strategies and income-shifting strategies be used to affect deductions for adjusted gross income (AGI), dependency exemptions, itemized deductions, and tax credits? Provide at least one e

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

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

    E12-15 Omar Coporation Exercise

    E12-15 On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that

    Calculating the Adjusted Cash Balance Per Books

    At August 31, Felipe Company has a cash balance per books of $8,011 and the following additional data from the bank statement: charge for printing Felipe Company checks $41, interest earned on checking account balance $45, and outstanding checks $870. Determine the adjusted cash balance per books at August 31.

    Computing Residual Income or Loss

    Scenario: Deskin Corporation uses residual income to evaluate the performance of its divisions. The company's minimum required rate of return is 19%. In February, the Commercial Products Division had average operating assets of $780,000 and net operating income of $139,800. What was the Commercial Products Division's residual in

    Return on Investment

    Given the following data: Sales $50,000 Net operating income $5,000 Contribution margin $20,000 Average operating assets $25,000 Stockholders' equity $15,000 Return on investment (ROI) would be: Question 3 answers a. 10% b. 20% c. 16.7% d. 80%

    Material Variances

    In October, 5,000 meters of raw material were purchased at an actual cost of $4.50 per meter. During October, 4,850 meters of the raw material were used to produce 2,400 units of the completed product. Standards call for 2 meters of the raw material for each unit of the completed product. The standard price of the raw material i

    Many people struggle to understand that debt forgiveness creates a taxable event. However there are some exclusions. The following article covers the topic in good detail. Please give your thoughts and comments about this. http://taxes.about.com/od/income/qt/canceled_debt.htm

    Many people struggle to understand that debt forgiveness creates a taxable event. However there are some exclusions. The following article covers the topic in good detail. Please give your thoughts and comments about this. http://taxes.about.com/od/income/qt/canceled_debt.htm

    Pesavento Company: Indicate which costs are variable, fixed or mixed

    Monthly production costs in Pesavento Company for two levels of production are as follows. Cost 3,000 units 6,000 units Indirect labor $10,000 $20,000 Supervisory salaries 5,000 5,000 Maintenance 4,000 7,000 Indicate which costs are variable, fixed, and mixed. Indirect labor Mixed cost

    Under performance of plan assets

    Under performance of plan assets can create a serious issue for companies. Make your comments about this based in the attached article.

    Accounting: Determination of Interest Expense

    Problem 1: Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the headings for an income statement and fill in the known values. Then divide $3 million of net income by (1-T)=0.6 to find the pretax income. The difference

    Tom's Company Accepting an Offer

    Toms Company makes and uses 20,000 units of a component part each year to produce a product. Costs for the component part include $4 for direct materials, $10 for direct labor, $6 for variable factory overhead, and $8 for unavoidable fixed factory overhead. Toms is considering an offer from a reputable outside supplier to provid

    Compute the Prime Cost Variances for 2009

    During 2009, Toms Company produced a toy. The toy was assembled from material expected to cost $20 per ounce and two ounces were expected to be needed for each toy. Assembly was expected to require 1.5 hours per toy, at $10 per hour. During the year, variable factory overhead was applied at the rate of $4 per direct labor hour.

    FASB's current definition of depreciation

    FASB ASC Research For each of the following research cases, search the FASB ASC database for information to address the issues. Cut and paste the FASB paragraphs that support your responses. Then summarize briefly what your responses are, citing the pronouncements and paragraphs used to support your responses. FASB ASC 9-1

    Make or Buy - Han Products

    Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials $ 3.60 Direct labor 10.00 Variable manufacturing overhead 2.40 Fixed manufacturing overhead 9.00 Total cost

    Accounting for Petty Cash Replenishment

    On March 20,Terrell's petty cash fund of $106.76 is replenished when the fund contains $9.69 in cash and receipts for postage $52.46, freight-out $26.05, and travel expense $13.19. Prepare the journal entry to record the replenishment of the petty cash fund. (For multiple debit/credit entries, list amounts from largest to smalle

    Taxable Income for 2010

    Write a response to the following question: Sally and Tom are married, have three dependent children, and file a joint return for 2010. If they have adjusted gross income of $90,000 and itemized deductions of $10,000. What is their taxable income for 2010?

    Distinguish Between Stated Rate and Effective Rate

    1. Distinguish between the stated rate and the effective rate. Under what circumstances are these rates the same? Under what circumstances are these rates different? Please make sure to support your thoughts with appropriate examples.

    Journalization of Asset Transactions for the Jimenez Co.

    P10-5A At December 31, 2008, Jimenez Company reported the following as plant assets: Land $4,000,000 Buildings $28,500,000 Less: Accumulated depreciation - buildings 12,100,000 16,400,000 Equipment 48,000,000 Less: Accumulated depreciation - equipment 5,000,000 43,000

    Standards Overload for CPA reporting on public vs nonpublic companies

    Would the user of statements be aided if there is a distinction between financial reporting standards for public vs. nonpublic companies? Would CPA's favor a distinction between financial reporting standards for public vs. nonpublic companies? Would small business owner managers favor a distinction between financial repor

    Carryback, Carryforward and Other Journal Entries

    (Carryback and Carryforward of NOL, No Valuation Account, No Temporary Differences) The pretax financial income (or loss) figures for Jenny Spangler Company are as follows. 2002 $160,000 2003 250,000 2004 80,000 2005 (160,000) 2006 (380,000)

    Accounting: Buying or Making Analysis

    Jo makes and sells a product for $50 per unit. Jo can produce as many as 150,000 units a year. Last year, 100,000 were produced and sold, and production costs per unit were $20 for variable cost and $10 for fixed costs. Jo has received an offer from a new customer who wants to buy 20,000 units for $40 per unit. What will b

    Accounting: Buy or make analysis...

    Jo Company makes and sells widgets using a component part presently produced in-house. 10,000 of the parts are needed each year, at a cost of $400,000, which includes allocated fixed costs of $100,000. A reputable outside vendor has offered to sell the parts to Jo for $32 per unit. What will be the effect (increase or d