Business

Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($17,500) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $120,000 of salary, $10,500 of long-term capital gains, $3,500 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct?
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Reuse of large amounts of copyrighted film in a documentary would not constitute a copyright infringement.a) Trueb)False
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The effect on existing deferred income tax accounts when a change in the tax rate is enacted into law should be Group of answer choices reported as an adjustment to income tax expense in the period of change. applied to all temporary or permanent differences that arise prior to the date of the enactment of the tax rate change, but not subsequent to the date of the change. The tax change should be ignored until the year it is enacted. considered, but it should only be recorded in the accounts if it reduces a deferred tax liability or increases a deferred tax asset.
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Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $1,800. The cards are redeemable for meals within one year of the purchase date. Gift cards totaling $728 were presented for redemption during the first three months of operation prior to year-end on December 31. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Texas Roadhouse will remit sales taxes in January.Required: a. Record (in summary form) the $2,500 in gift cards sold ( keeping in mind that, in actuality the firm would record each sale of a gift card individually ). b. Record the $728 in gift cards redeemed, including the 4% sales tax assessed. c. Determine the balance in the Unearned Revenue account ( remaining liability for gift cards ) Texas Roadhouse will report on the December 31 balance sheet.
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Burbank Company owns the building occupied by its administrative office. The office building was reflected in the accounts at the end of last year as follows:Cost when acquired . $330,000Accumulated depreciation (based on straight-line depreciation, anestimated life of 50 years, and a $30,000 residual value) . 78,000During January of this year, on the basis of a careful study, management decided that the total estimated useful life should be changed to 30 years (instead of 50) and the residual value reduced to $22,500 (from $30,000). The depreciation method will not change, i.e. they will keep using straight-line deprecation.Required:1. Compute the annual depreciation expense prior to the change in estimates.2. Compute the annual depreciation expense after the change in estimates.3. What will be the net effect of changing estimates on the balance sheet, net income, and cash flows for the year?
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What kind of tax system does the United States use?A. flat tax systemB. progressive tax systemC. proportional tax systemD. regressive tax system
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You expect to receive a payout from a trust fund in 3 years. The payout will be for $10,200. You plan to invest the money at an annual rate of 6.2 percent until the account is worth $17,800. How many years do you have to wait from today
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Lamont Company produced 80,000 machine parts for diesel engines. There were no beginnings or ending work-in-process inventories in any department. Lamont incurred the following costs for May: Molding Department Grinding Department Finishing DepartmentDirect materials $12,000 $5,400 $8,000Direct labor 10,000 8,500 12,000Applied overhead 17,000 14,000 11,000Required:1. Calculate the costs transferred out of each department.2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding.3. What if the Grinding Department had an ending WIP of $11,000? Calculate the cost transferred out.4. What is the effect on finished goods calculated in Requirement 1, assuming the other two departments have no ending WIP?
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1.$7,000 of merchandise inventory was ordered on September 2, 20092.$3,000 of this merchandise was received on September 5, 20093.On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received.4.On September 10, 2009, $800 of the merchandise was returned to the seller.Based on the above information, what would the journal entry for September 10, 2009 include
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Three aspects that must be included in the employment contract
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Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000 in revenue. For the same year, Top Brew paid $80,000 to employees in wages, spent $40,000 on ingredients such as coffee beans, $15,000 rent for the building to house Top Brew. Sue also used $50,000 of her personal savings to purchase equipment for Top Brew, which she was earning $4,000 in interest each year. Assuming no depreciation in the value of the equipment, Sues economic profit from Top Brew for the year is _______.
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ABC Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 660,000 Variable expenses $ 285,000 Fixed manufacturing expenses $ 244,000 Fixed selling and administrative expenses $ 192,000 All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $195,500 of the fixed manufacturing expenses and $110,500 of the fixed selling and administrative expenses are avoidable if product D14E is discontinued. Required: a. According to the company's accounting system, what is the net operating income earned by product D14E
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The following data pertain to Ronaldo Enterprises: Variable manufacturing cost $70 Variable selling and administrative cost 20 Applied fixed manufacturing cost 40 Allocated fixed selling and administrative cost 15 What price will the company charge if the firm uses cost-plus pricing based on absorption manufacturing cost and a markup percentage of 110%?A. $231.B. $147.C. $84.D. $210.
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Suppose the economy is experiencing an output gap of 3%. a. Select each response that indicates how monetary policy or fiscal policy can be used to raise actual output toward potential output. The government can increase its spending or reduce taxes, which will shift the IS curve to the right and increase GDP. The Fed can reduce the interest rate, which will shift the MP curve down and increase GDP. Firms can increase production, which will shift the IS curve to the right and increase GDP. The Fed can increase the interest rate, which will shift the MP curve up and reduce GDP. The government can increase taxes, which will shift the IS curve to the left and reduce GDP. b. The policies you identified in part a if used together, will cancel each other out, and the economy will remain in output gap of -3%. cannot be used together because each moves the economy in a different direction. can be used together to raise actual output toward potential output.
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Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $3). However, to process the new raw material, fixed operating costs will increase by $100,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold. (a) Prepare a projected CVP income statement for 2017, assuming the changes have not been made, and (b) assuming that changes are made as described.
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Marion Industries has an average accounts receivable turnover ratio of 12 times per year whereas most of its competitors have a ratio nearer to 8 times. This suggests that Marion's management should consider: multiple choice using stricter credit terms more aggressive collection efforts to avoid having its resources tied up in accounts receivable using more liberal credit terms to increase sales the need to sell for cash rather than on credit
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On January 1, 2019, Wasson Company purchased a delivery vehicle costing $47,550. The vehicle has an estimated 7-year life and a $4,500 residual value. Wasson uses the units-of-production depreciation method and Wasson estimates that the vehicle will be driven 105,000 miles. What is the vehicle's book value as of December 31, 2020, assuming the vehicle was driven 10,500 miles during 2019 and driven 18,500 miles during 2020
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The Supreme Court hears cases regarding which of the following?A.) Criminal violationsB.) Civil violationsC.) Traffic violationsD.) Constitutional rights violations
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Trueware Corporation is a start-up firm with a capital structure that includes 25 percent debt. Trueware has no preferred stock. The firm has two possible scenarios for its operations: Ruby or Emerald. The Ruby scenario has a 70 percent probability of occurring and the forecast earnings before interest and taxes (EBIT) in this scenario is $80,000. The Emerald scenario has a 30 percent chance of occurring and the EBIT is expected to be $32,000. Further, the firm's cost of debt is 10 percent. The firm has $500,000 in total assets and its marginal tax rate is 30 percent. The company has 22,000 shares of common stock outstanding. Calculate the difference in earnings per share (EPS) for the capital structure
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Nthanda Corporation has just completed a physical inventory count at year end, December 31, 2020. Only the items on the shelves, in storage, and in the receiving area were counted and costed on the FIFO basis. The inventory amounted to K80,000. During the audit, the independent Accountant discovered the following additional information:(a) There were goods in transit on December 31, 2020, from a supplier with terms FOB Shipping Point, costing K10,000. Because the goods had not arrived, they were excluded from the physical inventory count.(b) On December 27, 2020, a regular customer purchased goods for cash amounting to K1,000 and had them shipped to a bonded warehouse for temporary storage on December 28, 2020. The goods were shipped via common carrier with terms FOB Destination. The customer picked the goods up from the warehouse on January 4, 2021. Nthanda Company had paid K500 for the goods and, because they were in storage, Nthanda included them in the physical inventory count.(c) Nthanda Company, on the date of the inventory, received notice from a supplier that goods ordered earlier, at a cost ofK4,000, had been delivered to the transportation company on December 28, 2020; the terms were FOB shipping point. Because the shipment had not arrived on December 31, 2020, it was excluded from the physical inventory.(d) On December 31, 2020, there were goods in transit to customers, with terms FOB shipping point, amounting to K800 (expected delivery on January 8, 2021). Because the goods had been shipped, they were excluded from the physical inventory count.(e) On December 31, 2020, Nthanda Company shipped K2,500 worth of goods to a customer, FOB destination. The goods arrived on January 5, 2020. Because the goods were not on hand, they were not included in the physical inventory count.(f) Nthanda Company, as the consignee, had goods on consignment that cost K3,000. Because these goods were on hand as of December 31, 2020, they were included in the physical inventory count.Requiredi. Pass an analysis of the above information and calculate a correct amount for the ending inventory. Give explanation of the basis for your treatment of each item.
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Which stage of new product development would you be most interested in participating in? Explain.
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Graham Corp. has 1,000 cartons of oranges that were harvested at a cost of $30,400. The oranges can be sold as is for $36,400. The oranges can be processed further into orange juice at an additional cost of $13,000 and be sold at a price of $53,000. The net benefit (additional income) from processing the oranges into orange juice instead of selling as is would be:rev: 12_08_2020_QC_CS-243270Multiple Choice$(3,600).$16,600.$3,600.$40,000.$(16,600).
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alculating Net Float [LO1] Each business day, on average, a company writes checks totaling $17,000 to pay its suppliers. The usual clearing time for the checks is four days. Meanwhile, the company is receiving payments from its customers each day, in the form of checks, totaling $22,000. The cash from the payments is available to the firm after two days
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International Gems sells fine jewelry and has implemented activity-based costing. Costs in the shipping department have been divided into three cost pools. The first cost pool contains costs that are related to packaging and shipping. International has determined that the number of boxes shipped is an appropriate cost driver for these costs. The second cost pool is made up of costs related to the final inspection of each item before it is shipped and the cost driver for this pool is the number of individual items that are inspected. The final cost pool is used for general operations of the department and the cost driver is the number of orders. Information about the activities is summarized below:Cost Pool Estimated Total Costs Cost Driver Estimated Annual ActivityPackaging and shipping 67,200 Number of boxes shipped 16,000 boxes Final inspection 200,000 Number of individual items inspected 100,000 items General operations 85,000 Number of orders 10,000 orders During the period, the Southern sales office generated 240 orders for a total of 3,560 items, which were shipped in 1,200 boxes. What amount of shipping department costs should be allocated to these sales?
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