Tax questions 1. Joe has received an offer to sell his company to Microsoft Inc. for $40 million. The selling price will consist of 20% cash and the balance in Microsoft stock. Joe asks your advice on the different tax structure possibilities for the sale of the company and your recommendation for which method he should consi
As the CPA for a large organization, your manager has asked you to provide information to outside CPAs who are examining a subsidiary that has been set up as a corporation. As part of their review, the CPAs have asked you to provide them with the following explanations: - The methodology used to determine deferred taxed -
The following information relates to Jorgensen Manufacturing for calendar year 2011, the company's first year of operation: Units produced 8,000 Units sold 7,000 Selling price per unit $ 4,500 Direct material per unit $ 2,000 Direct labor per unit $ 1,200 Variable manufacturing overhead per unit $ 900 Variable selling
Campus Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered: Copy Machine Month Repair Expense Copies Made May $ 8,500 300,000 June 12,500 500,000 July 20,500 900,000 August 16,500 700,000 September 10,500
What is a flow-through entity? What advantages do flow-through entities have over a regular corporation? Compare and contrast the tax characteristics of an S corporation and a partnership. 860 words
Can a partnership be traded as a publicly traded organization? How can you find one? Give example.
Mize Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $ 25,000 in the first quarter, and $5,000 increments are expected in the remaining quarters of 2008. Fixed expenses are expected to be $40,000 in each quarter. Prepare the selling and
For Justus, Inc. Variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2010 with $ 4,000 increments in each of the remaining three quarters. Fixed overhead cost are estimated to be $35,000 in each quarter. Prepare the manufacturing overhead budget by quarters and in total for the year.
46. Elaine exchanges a van that is used exclusively for business purposes for another van that also is used exclusively for business. The adjusted basis for the old van is $18,000 and its FMV is $14,500. a. Calculate Elaines recognized gain or loss on the exchange. b. Calculate Elaine's basis for the va
Distinguish between a sampling error and a non sampling error and "how can each be reduced".
1. Hagar, Inc. is a retail chain with 125 stores organized into 5 regions. The most recent annual income statement for the Snert, ND store is given below (in $000). It is typical of recent years, and Hagar is considering closing the store because of chronic losses. What factors should Hagar consider in making the decision?
The Walter Jewelry Company produces a bracelet which normally sells for $79.95. The company produces 1,500 units annually but has the capacity to produce 2,000 units. A special order for manufacturing and selling 200 bracelets at $49.95 has been received which would not disrupt current operations. Current costs for the bracel
Many accounting writers have emphasized the effect that the allocation of fixed overhead can have on managerial incentives to overproduce. When fixed overhead is allocated to product, the greater the production level, the lower the fixed cost per unit. The lower fixed cost per unit might increase perceived profitability, but is
If you want to find out about a public company's foreign operations, where in the annual report do you go and what information is disclosed? Check out a multinational's annual report on a company's website particularly ones with very heavy international exposure like Coke, McDonalds, Intel, JNJ, Colgate, Avon, Cisco, Microso
Would you be able to help me to provide background on different fraudulent schemes?
Tiger, Inc., has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity ...see file attached... During the last period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were: ...see file attached... Determine the direct mate
Waterson Company makes all sales on account. Normally, 40% of accounts are collected in the month of sale, 50% in the following month, 5% in the second following month, and 5% are uncollectible. Recent sales have been: $100,000 in March, $120,000 in April, $110,000 in May, and $150,000 in June. What are expected cash collections
(In the first column, indicate whether the transaction would be a Source, Use, or Neither. In the second column, indicate whether the transaction would be classified as Operating, Investing, or Financing, or None on the Statement of Cash Flows. In the last two columns, indicate whether or not the transaction would be reported
Access the FASB Codification at http://asc.fasb.org/home to prepare responses to the following exercises. Provide Codification references for your responses. 1.(a) What is the definition of amortization? (b) What is the definition of impairment? (c) What is the definition of recoverable amount? (d) What are activ
Consider the following scenarios: (Please respond to each scenario) * When we talk about "bad checks," are those always checks our customers have written to us? Explain. Would the company also write any bad checks and what are the repercussions for the same? Give examples to support your answer. * Suppose one person
See attached file. Recognizing and Minimizing Tort and Regulatory Risk Plan Resources: Business Regulation Simulation Write a plan using a company such as Alumina, Inc., explaining how regulatory risks may be identified and managed through preventive, detective, and corrective measures. Identify common torts and ris
How do current earnings and profits differ from accumulated earnings and profits? Is there any reason to keep the two accounts separate? How does a corporation's computation of earnings and profits? How do current earnings and profits differ from accumulated earnings and profits? Is there any reason to keep the two accounts s
Compare and contrast the requirements for the formation and termination of an S corporation and a partnership. What is the effect on both the business entity and its owners? 819 words
Can you explain the reason why we capitalize an expense and depreciate it as against writing it off in the period that the expense was incurred. Give an example.
A comparative balance sheet for Hartman Corporation is presented below: HARTMAN CORPORATION Comparative Balance Sheet 2010 2009 Assets Cash $ 46,000 $ 31,000 Accounts receivable (net) 70,000 60,000 Prepaid insurance 25,000 17,000 Land 18,000 40,000 Equipment 70,000 60,000 Accumulated depreciation (20,
Russell Manufacturing Company developed the following data: Beginning work in process inventory $180,000 Direct materials used 140,000 Actual overhead 220,000 Overhead applied 160,000 Cost of goods manufactured 240,000 Ending work in process 300,000 Russell Manufacturing Company's tota
What are the distinctions between net ordinary income and separately stated income and deductions? What is the rationale for separately stating those items as individual K and the K-1?
Please help with answer the following question: Include at least 300 words and step by step calculations. In analysis of overhead cost variances, what is the controllable variance and what causes it?
Certified Public Accountants have imposed on themselves a rigorous code of professional conduct. Discuss the reasons for the accounting profession's adopting a code of professional conduct. 298 words.
Why are we interested in cash flows rather than accounting profits in determining the value of an asset?