Please help with the following problem. Provide step by step calculations. During the current year, Don's aunt Natalie gave him a house. At the time of the gift, the house had a FMV of $42,000 and his aunt's adjusted basis was $32,000. After deducting the annual exclusion, the amount of the gift was $30,000. His aunt paid
I:8-13 Which of the following activities are considered passive for the year? Explain. Consider each situation independently. a. Laura owns a rental unit that she rents out to students. The rental unit is Laura's only business and she spends approximately 875 hours per year managing, collecting the rent, advertising, and
1. Spain Inn has a total value of $21 million. Its stock sells at $32 a share. At present, it has a loan of $5 million at 8% interest. It needs $3 million to renovate the building. It can get the financing by selling 100,000 shares of stock at $30 (net) per share, or by borrowing the money at 9% interest. The expected EBIT after
Scenario: Mary and Nick Stalcheck have an investment portfolio containing 4 vehicles. The portfolio contains common stock, industrial bonds, mutual fund shares and options. They are interested in measuring the return on their investment and assessing how well they have done relative to the market. They hope that the return e
1. Suppose your firm receives a $5 million order on the last day of the year. The customer picks up the entire order the same day and pays $1 million in upfront in cash; you also issue a bill for the customer to pay the remaining balance of $4 million within 30 days. Suppose your firms tax rate is 0 (ignore taxes). Determine the
Please provide your professional opinion on the following: Do you think that the asset/liability approach used by the FASB to record taxes is valid? Why or why not.
See the attached file. 2-1 Total Assets Use the following information, compute total assets. Equipment . . . . . . . . . . . . . . . $10,000 Accounts payable . . . . . . . . ....... 900 Capital stock . . . . . . . . . . . . .... 1,500 Cash . . . . . . . . . . . . . . . . . . ....... 800 Loan payable . . . . .
1. A main accounting issue for plant assets is: A) Computing the cost of the plant assets. B) Matching the costs of plant assets against revenues for the periods they benefit. C) Accounting for repairs and improvements to plant assets. D) The disposal of plant assets. E) All of the above. 2. Nelson Company purcha
Sell or process further (adapted from CMA exam) The department of Biggs Company is considering a proposal to install a third production department within its exiting factory building. With the company's present production setup, 200.000 pounds per year of direct materials pass through Department 1 to Produce 100,000 pounds each
Waldo and Company, LLP, is a partnership that provides public accounting services. Waldo has three offices located in New Orleans, Baton Rouge, and Lafayette. Each of the offices employs approximately 30 professional accountants who are hired by and work solely for the office to which they are assigned. The offices are run indep
See the attached file. Snappy Company, estimated the following for 2009: Manufacturing Overhead $100,000 Direct Labor hours 40,000 At year end (12/31/2009), actual DLH = 45,000 And actual overhead costs were $110,250. A. Compute the overhead application rate for 2009.
Michigan Mining and Manufacturing has a debt obligation of $100 million and assets with a value of $90 million. This debt must be paid off very shortly. When this happens, the value of the debt will be $90 million and the value of equity will be $0. Prior to paying off the debt, MMM has an opportunity to make a high-risk investm
Why would a company engage in intercompany transactions? What are some types of intercompany transactions? What is the difference between upstream and downstream intercompany transactions? Why is it important to know the difference?
BE13- 1 On June 30 Rojas Corporation discontinued its operations in Mexico. On September 1 Rojas disposed of the Mexico facility at a pretax loss of $ 480,000. The applicable tax rate is 25%. Show the discontinued operations section of Rojas's income statement. BE13- 3 On January 1, 2007, Cannon Inc. changed from the LIFO met
See the attached file. 1. On July 23, Plitt Company factored $300,000 in accounts receivable for cash of $280,000. The factor withheld 7 percent of the cash proceeds to allow for possible customer returns. An allowance for doubtful accounts of $13,000 had previously been established by Plitt in relation to these accounts.
THOMPSON CONSTRUCTION Thompson Construction has a contract to remodel two Government warehouses for use as modern office space. The $900,000 contract was on March 1, with completion scheduled for 240 days after contract award. For 150 days, work proceeded as expected. Thompson completed work on Warehouse 1 and began work on Wa
Company B's production budget for the year ended December 31, 2005 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at $90,000 for the year, and the fixed overhead rate was estimated to be $6.00 per unit. Both fixed and variable overhead are assigned to the pro
1. For each of the following cases, identify the accounting concept(s) or principle(s) that are being violated. In each case, give a general description of the requirements of the concept(s) or principle(s) and state exactly how they are being violated. A. A company used the FIFO costing method for valuation of its inventory
See attached files for problems. P9-3B Presented below is an aging schedule for Jafar Company: Number of Days Past Due Customer: Total: Not yet due: 1 ~ 30 31 ~ 60 61 ~ 90 Over 90 Akers $30,000 $13,500 $16,500 Baietto 45,000 $45,000 Comer 75,000 22,500 7,500 $45,000 DeJong 57,0
Managerial Accounting: Hamilton Stage Supplies variable & full costing. Problem P5-2 Variable and Full Costing: Sales Constant but Production Fluctuates
See attached file. Managerial Accounting, Third Edition by James Jiambalvo "Solving Managerial Accounting Problems Using Microsoft Excel or Windows Templates by Rex A Schildhouse" Problem P5-2 Variable and Full Costing: Sales Constant but Production Fluctuates Hamilton Stage Supplies is a
See attached file. Managerial Accounting, Third Edition by James Jiambalvo "Solving Managerial Accounting Problems Using Microsoft Excel for Windows Templates by Rex A Schildhouse" PROBLEM P4-6 - Account Analysis, High-Low, Contribution Margin Information on occupancy and costs at the New
See attached file. Managerial Accounting, Third Edition by James Jiambalvo "Solving Managerial Accounting Problems Using Microsoft Excel for Windows Templates by Rex A Schildhouse"(Spreadsheet template is attached to assist in better understanding problem) Problem P3-1 Comprehensive Problem, One Dep
Using Alcoa's & Ford's most current 10-K or the company's annual report analize both companies. Post comments about the comparison between the two companies. Compare the income statement elements and comment if the ratios are comparable or not and which company may be doing better and why. I am having such a hard time even f
I am having trouble with the following three questions: 1. What is "consolidated retained earnings"? 2. Distinguish between "transfer at cost" and "transfers at a profit or loss" in intercompany transactions? 3. What is the eliminating entry when one subsidiary sells merchandise to another subsidiary?
V- Each of the following events describes acquiring an asset that requires a year-end adjusting entry. 1- Paid $7,000 cash on January 1 to purchase printers to be used for administrative purposes. The useful life is estimated of three years and a $1,000 salvage value. 2- Paid $7,000 cash on January 1 to purchase manufacturin
The solution computes, net income, book value, retained earnings,common stock outstanding, market value of asset is given examples of Romo Inc, Fyre Inc & Klington Widgets Inc.
Romo, Inc., has current assets of $1,100, net fixed assets of $14,500, current liabilities of $ 600, and long-term debt of $4,000. The value of the shareholders' equity account for this firm is $ ? The amount of net working capital is $ ...... . Fyre, Inc., has sales of $485,000, costs of $190,000, depreciation expense
10) On August 1, 2005, Sarah Brown invested $90,000 in her new business, Brown Construction. During August, she withdrew $10,000 from the business. The amounts of the various assets, liabilities, revenues and expenses are as follows: Accounts payable, $9,000, Accounts Receivable, $26,000, Cash, $5,400, Construction revenue,
Dot Point, Inc. is a retailer of washers and dryers and offers a three-year service contract on each appliance sold. Although Dot Point sells the appliances on an installment basis, all service contracts are cash sales at the time of purchase by the buyer. Collections received for service contracts should be recorded as A
8-74. The mix of salary and commission. Belleville Fashions sells high-quality women's, men's, and children's clothing. The store employs a sales staff of 11 full-time employees and 12 part-time employees. Until recently, all sales staff were paid a flat salary and participated in a profit-sharing plan that provided benefits
6) Cash is collected from a customer who was previously put on account. How does the collection of the cash affect the accounting equation?__A, B, C, or D__ A) assets increase; owner's equity increases B) assets increase; liabilities increase C) assets increase; assets decrease D) assets decrease; owner's equity decreases