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monopolist output, charges, and profit-maximization

In the following table are demand and cost data for a pure monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost. Answer these three questions: (a) What output will the monopolist produce? (b) What price will the monopolist charge? (c) What total prof

Indexing of Tax Exemptions

Each year the I.R.S. adjusts the value of an exemption based on inflation (and rounded to the nearest $50). In a recent year if the exemption was worth $3,100 and inflation was 4.7%, what would be the amount of the exemption for the upcoming tax year?

This posting addresses taxable income.

Thomas Franklin arrived at the following tax information: Gross salary, $46,660 Interest earnings, $225 Dividend income, $80 One personal exemption, $3,400 Itemized deductions, $7,820 Adjustments to income, $1,150 What amount would Thomas report as taxable income?

Differences between short term and long term objectives

1. You're right that short-term objectives and long-term objectives have different time frames for completion. Should the short-term objectives add up to the long-term objectives? In other words, are the short-term objectives simply steps along the way to achieving the long-term objectives? 2. You've pointed out some importan

Cost of production and Absorption & Variable Cost

See attached file. E17-27 Cost of production Report: No beginning inventories Oregon Paper Company produces newsprint paper through a special recycling process using scrap paper products. Production and cost data for October 2009, the first month of operations for the company's new Portland plant, follow: Units of prod

accounting concepts

On Cursor Corporation's balance sheet, a large tract of company-owned land is reported at its original cost of $50,000. The owner of the company is upset, because he thinks the land's true value is ten times that amount. He fears the low-cost figure may hurt the company as it tries to raise additional capital in the future. The

Four examples of where forensic accounting may be used

Scenario: SLL has a partner, Dick, who is involved in a nasty divorce. This partner's soon-to-be former wife Georgia had a very successful company. He feels his wife is trying to hide income from him. Dick asks you if a forensic accountant would be helpful in this situation. Report on the following: You do some research

Accounting: General ledger.

a) Owner invested $15,000 cash into the business in exchange for its common stock. b)Purchased office furniture costing $6,500 by making a down payment of $2,500 cash, and issuing a note payable for $4,000. c)Purchased supplies for $3,200 cash. d)Recorded fees earned of $5,000 receiving cash for completed work. e)Made a $3,5

Norr and Caylor: Net Income and Balance

Norr and Caylor established a partnership on January 1, 2010. Norr invested cash of $100,000 and Caylor invested $30,000 in cash and equipment with a book value of $40,000 and fair value of $50,000. For both partners, the beginning capital balance was to equal the initial investment. Norr and Caylor agreed to the following proce

Incremental Analysis Net Income

See the attachment. Benson, Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Value at Split-off Point C

Products and Period Costs Classification

M17-14 Classification of products and Periods Costs Classify the following costs incurred by a manufacturer of golf clubs as product costs or period costs. Also classify the product costs as direct materials, or conversion costs. a. Depreciation on computer in president's office b. Salaries of legal staff c. Graphite sh

Need for economics.

Even if all resources are freely available, will consumers demand things be made more convenient than in their 'raw' form? Would this produce a need for economics?

forensic accounting

Identify one category of evidence accumulated during a fraud investigation, and explain what types of items are classified as such. How does the forensic accountant work with the type of evidence you selected? Identify a challenge the accountant faces in dealing with this evidence during the investigation process.

Accounting Errors/Corrections

1. Rodney Company's December 31 year-end financial statements contained the following errors: December 31, 2010 December 31, 2011 Ending inventory .......... $4,000 understated $3,600 overstated Depreciation expense ...... 800 understated -- An insurance premium of $3,600 was prepaid in 2010 covering the years 2010,

Reconciling Pretax Income and Taxable Income

19-2 (One Temporary Difference, Tracked for 4 Years, One Permanent Difference, Change in Rate) The pretax financial income of Parker-Gregory Company differs from its taxable income throughout each of 4 years as follows. Pretax Taxable Year Financial Income Income Tax Rate 2007 28

underinvesting and overinvesting, transfer price strategies

E 12-13 Explain why the senior managers at Quantum have an incentive to overinvest: Explain why senior managers at Aquafinn have incentive to underinvest: P 12-16 Suggest a transfer price for the fabric assuming that the Fabric Division is operating at only 60% capacity due to a surge in popularity of easy care fabri

Accumulated Value - Before-tax Vs. After-tax Contributions

What is the accumulated value of a $1,000 contribution to a qualified defined contribution plan under each of the circumstances described in the table below? Tax Rate Before-tax Rate of Return Investment Period 10% 8% 5 years 30% 8% 5 years 30% 4% 5 years 30% 4% 10 years Suppose instead that the $1,000 is paid

Basis for property owned by person and corporation, and tax

I have this problem for a practice exam, and am stumped. For the corporation's basis of $40,000, since corporations don't get stepped-up basis, however I am not sure if that is right. Parts b-d I really don't have a clue (was eric's basis $100,000 or $125,000?), and would appreciate help from a qualified professional. Probl

LLC profit and losses - selling interest in LLC

Tony had a 40% interest in the Apollo LLC's profits and losses. The balance in his capital account was -$240,000 (negative capital). The LLC's only liability was $1,000,000 nonrecourse mortgage. a. What would be the tax consequences to Tony if he sold one-half of his interest in the LLC to Zach for $100? b. What would be th

Financial Data Reported by Mac Company

Please see attachment for better formatting. AE10-7 The following financial data were reported by Mac Company for 2007 and 2008 ($ in millions). MAC COMPANY Balance Sheets (partial) 2008 2007 Current assets Cash and cash equivalents $2,406 $1,799 Accounts receivable, net 3,824 3,349 Inventories

Fehr Co: Prepare a computation of the carrying value of the patent

24. Fehr Co. purchased a patent from Wells Co. for $180,000 on July 1, 2005. Expenditures of $51,000 for successful litigation in defense of the patent were paid on July 1, 2008. Fehr estimates that the useful life of the patent will be 20 years from the date Directions: Prepare a computation of the carrying value

EOQ and Finanical Effecs Where Disounts Offer on Bulk Buying

Drake Electronics manufactures a number of electronic devices. The company got its start during World War II by manufacturing radio communications equipment for the military. However, today one of their major products is a liquid crystal display (LCD). Their LCDs are used in a variety of applications, including cockpit displays.

Joseph T. Wells founder Association of Fraud Examiners(ACFE)

Visit the Association of Certified Fraud Examiners Web site and read a short introduction on Joseph T. Wells (http://www.acfe.com). (Hint: He was not only the founder but is listed as an instructor.) a. What is Well's background before becoming chairman of the Association of Certified Fraud Examiners? What major aspects of h

T-Bills and risk less assets

Suppose you own $1 million worth of 30-year Treasury bonds. Is this asset riskless? b. You own $1 million worth of 90-day Treasury bills. You â??roll overâ? this investment every 90 days by reinvesting the proceeds in another issue of 90-day Treasury bills. Is this investment riskless? c. Can you think of an asset that i

Generate a Sample from a Random Number Table

See attached file. The management of AAAA Company has observed that the company's cash outflows have been increasing much more rapidly than its inflows. Management cannot understand the change; from its perspective, it has been "business as usual." Management has asked you, a fraud expert, to help them understand what is goin