During 2009, Falwell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. The preferred stock has a par value of $100 per share. Falwell did not declare or pay any dividends during 2009. Falwell's net income for the year ended December 31, 2009, was $2.5 million. The income t
Blithe Company purchased 60 percent of Spirit Company's stock for $100,000 on January 1, 2006 when Spirit reported $120,000 of common stock outstanding and retained earnings of $25,000. On December 31, 2008, Blithe reported its investment in Spirit at $126,100 using equity-method accounting for its investment. Blithe received di
The following transactions pertain to Jones Corporation for 2009. Jan 1. Began operations when the business acquired $50,000 cash from the issue of common stock. Mar. 1 Paid rent for office space for two years, $18,000 cash. Apr. 1 Borrowed $40,000 cash from First National Bank. The note issued had an 8 percent annual
What are the suggested best practices for tax advisors? Can the IRS penalize practitioners under Circular 230? If so, in what ways? Explain.
O7). Use the following information for questions I and II below. Rice Co. purchased machinery that cost $810,000 on January 4, 2006. The entire cost was recorded as an expense. The machinery has a nine-year life and a $54,000 residual value. The error was discovered on December 20, 2008. Ignore income tax considerations. I
I'm curious as to what happens if an individual has two or more hobby-activities that an individual treats as a business. If two or more activities were to incur losses for a year or more, and for the sake of argument-- simultaneously (as even hobby activities may be affected by recessionary downturns); do such losses from two o
TAX "ISSUE" IDENTIFICATION QUESTIONS (Try to answer two questions from each chapter). No solutions, please. Just answer without having to actually solve a problem. C9-19 Bob and Kate form the BK Partnership, a general partnership, as equal partners. Bob contributes an office building with a $130,000 FMV and a $95,000 adjust
As our world constantly experiences change, our communication-related theories continue to evolve to meet our new realities. Visit the Emotional Intelligence and QEMS Web sites to explore the current theories of emotional intelligence and quantum energy management. 1. Discuss the validity and possible applications of these tw
Part I Fill in the blanks: Question 1 to 8: In the space provided, classify each as it would be reported on a balance sheet. Use the following code: A -----Asset L -----Liability SE ------ stockholders' equity _____1. Accounts Payable _____2. Accounts Receivable _____3. Buildings _____4. Cash _
See attached article for reference. According to NASA's former auditor, PriceWaterhouseCoopers (PWC), NASA's finances are a mess, with major errors in its last financial statements and insufficient documentation. NASA's chief of internal financial management has maintained that the problems resulted from a difficult transitio
Explain operating segments of an enterprise. How does SFAS No. 131 define an operating segment? What thresholds must be met for an operating segment to be a reportable segment?
What are the purposes of accounting codes? How are they used? Provide an example. What type of source documents does the business you work for use for AIS? Are the documents paper-based, electronic, or other? Why does the business use those specific documents? Please give example and reference.
I'm having a bit of trouble understanding these questions, please help. 1. Which of the following is not a method that can reasonably be used to forecast sales? 1. trends in the company's sales data 2. mathematical models adjusted by an experienced manager using professional judgment 3. flexible budgets
I'm trying to complete these questions from my homework and I am having a very difficult time, please help. 1. The Chesterfield Company uses standard costing. Overhead is applied at $12 per machine hour. Data for the month of March follows:? Actual overhead costs $ 97,000 ? Standard machine hours allowed for actual production
Stewart Industries sells its finished product for $9 per unit. Its fixed operating costs are $20,000, and the variable operating cost per unit is $5. a. Calculate the firm's earnings before interest and taxes (EBIT) for sales of 10,000 units. b. Calculate the firm's EBIT for sales of 8,000 and 12,000 units, respectively. c.
Osgood, Inc. makes a gourmet dark chocolate syrup that is sells to coffee shops for use in making gourmet coffee drinks. Fixed costs for this product are estimated to be $180,000. The syrup is sold in cases of 12 bottles for $30. Variable costs are estimated at $1.00 per bottle. Required: In a memo to management, provide
1. Smiley Corporation purchased a machine on January 2, 2006, for $2,000,000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes: 2006 $400,000 2009
Companies following international accounting standards are permitted to revalue fixed assets above the assets' historical costs. Such revaluations are allowed under various countries' standards and the standards issued by the International Accounting Standards Board (IASB). Liberty International, a real estate company, headquart
Cole, Inc., which owes Henry Co. $600,000 in notes payable with accrued interest of $54,000, is in financial difficulty. To settle the debt, Henry agrees to accept from Cole equipment with a fair value of $570,000, an original cost of $840,000, and accumulated depreciation of $195,000. Instructions (a) Compute the gain
1. In March 2007, an explosion occurred at Howe Co.'s plant, causing damage to area properties. By May 2007, no claims had yet been asserted against Howe. However, Howe's management and legal counsel concluded that it was reasonably possible that Howe would be held responsible for negligence, and that $4,000,000 would be a reaso
1. Suppose the demand is Q = 10 - P and the supply is Q = P + 4. Please verify that the following table gives the quantity demanded and supplied at each given prices. What is the equilibrium price and quantity sold under perfect competition? Price Quantity Quantity Supplied Demanded 1 5 9 1.5 5.5 8.5 2 6 8 2.5 6.5 7.5
Exhibit 1 Selected product grades with production and financial data Product (Grade) Caliper Coated/Uncoated Slit Average Reels per Batch Material Cost per Reel Selling Price per Reel A 0.013 Coated Yes 50 $4,800 $12,600 B 0.014 Uncoated No 2
The controller for Ocean Sailboats Inc., a company which uses an automated process to make sailboats, established the following overhead cost pools and cost drivers: Budgeted Estimated Overhead Cost Pool Overhead Cost Driver
Gether Corporation manufactures appliances. It has four division: Refrigerator, Stove, Dishwasher, and Microwave oven. Each division is located in a different city and the headquarters is located in Oakland, California. Headquarters incurs a total of $14,255,000 in costs, none of which are direct costs of any o the divisions.
ABC Corporation has sales of $1,000,000, gross profit of $550,000, net income of $150,000, average total operating assets of $1,500,000 and fixed assets of $450,000. What is ABC's return on investment (ROI)? (Points: 1) 15% 10% 55% 45% Holding all other factors equal, if net income incr
What is a triangular acquisitive reorganization?
Benjamin O'Henry has owned and operated O'Henry's Data Services since its beginning ten years ago. From all appearances, the business has prospered. In the past few years, you have become friends with O'Henry and his wife. Recently, O'Henry mentioned that he has lost his zest for the business and would consider selling it for th
Bruster Company sells its products for $66 each. The current production level is 25,000 units, although only 20,000 units are anticipated to be sold. Unit manufacturing costs are: Direct materials $12.00 Direct manufacturing labor $18.00 Variable manufacturing costs $9.00 Total fixed manufac
Basis of accounting questions need the following help with the questions listed.
Jeff and Ann are both 28 years old. They have been married for three years, and they have a son who is almost two. They expect their second child in a few months. Jeff is the head teller in a local bank. He has just received a $30-a-week raise. His income is $480 a week, which after taxes, leaves him with $1,648 a month. His