Get college assignment help at uniessay writers Heather is a full time employee of the Drake Company and participates in the company’s flexible spending plan that is available to all employees. Which of the following is correct? a. Heather reduced her salary by 1200, actually spent 1500, and received only 1200 as reimbursement for her medical expenses. Heather’s gross income will be reduced by 1500. b. Heather reduced her salary by 1200, and received only 900 as reimbursement for her actual medical expenses. She is not refunded the 300 remaining balance, but her gross income is reduced by 1200. c. Heather reduced her salary by 1200, and received only 800 as reimbursement for her medical expenses. she is not refunded the 400. her gross income is reduced by 800. d. heather reduced her salary 1200, and received only 900 as reimbursement for her medical expenses. she forfeits the 300. her gross income is reduced by 300. e. none of the above.
Activities and Cost Drivers For each of the following activites, select the most appropriate cost driver. Each cost driver may only be used once. Activites Pay Vendors Evaluate Vendors Inspect raw materials Plan for purchases of raw materials Packaging Supervision Employee Training Clean Tables Machine Maintenance Move patients to and from surgery Cost Drivers: a) Number of different kinds of raw materials b) Number of classes offered c) Number of tables d) Number of employees e) Number of operating hours f) Number of units of raw materials received g) Number of moves h) Number of vendors i) Number of checks issues j) Number of customer orders
The following question has to do with amortization expense. Thank you.
Sold merchandise on account to Modesto Co., terms 2/10, n/30, FOB shipping point, $25,000. The cost of the merchandise sold was $15,000 Received merchandise returned on sale of July 6, $6,000. The cost of the merchandise returned was $4,500 Received cash from sale of July 6, less return of July 14 and discount
Activity-Based Costing for Manufacturing
Foreman company issued $800,000 of 10% , 20 yr bonds on jan 1, 2011, at 102. interest is payable semiannually on july 1 and January 1. Foreman Company uses the straight line method of amortization for bond premium or discount.
Culotti’s Pizza operates strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees making the pizzas and the large ovens in which the pizzas are baked.
Q2. What are the tax consequences of a qualifying stock redemption to the distributing corporation?
Need answer to this problem: ACCT 2302 NAME Problem 20-4A (a) (1) Expected collections from customers January February November ($200,000) December ($280,000) January ($360,000) February ($400,000) Total collections (2) Expected payment for direct materials January February December ($90,000) January ($100,000) February ($110,000) Total payments (b) LORCH COMPANY Cash Budget For January and February 2008 January February Beginning cash balance Add: Receipts Collections from customers Interest receivable Sale of securities Total receipts Total available cash Less: Disbursements Direct materials Direct labor Manufacturing overhead Selling and administrative expenses Purchase of land Total disbursements Excess (deficiency) of available cash Financing Borrowings Repayments Ending cash balance
Nobunaga Corporation owns a patent that has a carrying amount of $300,000. Nobunaga expects future net cash flows from this patent to total $190,000. The fair value of the patent is $110,000. Prepare Nobunaga’s journal entry, if necessary to record the loss of impairment.
Get college assignment help at uniessay writers 1. Which of the following is not a reason for a business combination to take place? a. Cost savings through elimination of duplicate facilities. b. Quick entry for new and existing products into domestic and foreign markets. c. Diversification of business risk. d. Vertical integration e. Cost increases throughout the organizations 2. A company is not required to consolidate a subsidiary in which it holds more than 50% of the voting stock when a. The subsidiary is located in a foreign country. b. The subsidiary in question is a finance subsidiary. c. The company holds more than 50% but less than 60% of the subsidiary’s voting stock. d. The company holds less than 75% of the subsidiary’s voting stock e. The subsidiary is in bankruptcy. 3. Which of the following statements is true regarding as statutory merger? a. The original companies dissolve while remaining as separate divisions of a newly created company. b. Both companies remain in existence as legal corporations with one corporation now a subsidiary of the acquiring company. c. The acquired company dissolves as a separate corporation and becomes a division of the acquiring company. d. The acquiring company acquires the stock of the acquired company as an investment. 4. Lisa Co. paid cash for all of the voting common stock of Victoria Corp. Victoria will continue to exist as a separate corporation. Entries for the consolidation of Lisa and Victoria would be recorded in a. A worksheet b. Lisa’s general journal c. Victoria’s general journal d. Victoria’s secret consolidation journal e. The general journals of both companies
During the year, Plum Company has a SUTA tax rate of 4.8%. The taxable payroll for the year for FUTA and SUTA is $123,400. Compute:
2.) Will a partnership under state law be taxed as a partnership under Internal Revenue Code? 3.) List at least three items which will increase a partner’s basis in a partnership and at least three items which will decrease a partnership’s basis. 7.) What is the difference in treatment when an incoming partner purchases an interest by agreeing to perform services for the partnership and the partnership (1) gives a 25% interest in the capital of the partnership, (2) gives a 25% interest in the future income of the partnership, or (3) gives a 25% interest in the partnership’s future income which the incoming partner must forfeit if the partnership, as reconstituted after the incoming partner’s admission, is unable to earn an average of $100,000 profit for the ensuing five years?
at each calendar year- end rivka supply co. uses the percent of accounts receivable method to estimates that 2 percent will be uncollectible. prepare the adjusting entry to record bad debts expense for year 2009 under the assumption that the allowance for doubtful accounts has (a) a 2371 credit balance before the adjustment and (b) a 487 debit balance before the adjustment
Which of the following are deductions for AGI? a. Mortgage interest on a personal residence. b. Property taxes on a personal residence. c. Mortgage interest on a building used in a business. d. Fines and penalties incurred in a trade or business. e. None of the above.
In 2010, Grant’s personal residence was damaged by fire. Grant was insured for 90% of his actual loss, and he received the insurance settlement. Grant had adjusted gross income, before considering the casualty item, of $30,000. Pertinent data with respect to the residence follows: Cost basis: $170,000 Value before casualty: 250,000 Value after casualty: 150,000 What is Grant’s allowable casualty loss deduction? a. $0 b. $6,500 c. $6,900 d. $10,000 e. $80,000
Tommy, a senior at State College, receives free room and board as full compensation for working as a resident advisor at the university dormitory. The regular housing contract is $1,800 a year in total, $1,000 for lodging and $800 for meals in the dormitory. Tommy had the option of receiving the meals or $800 in cash. Tommy accepted the meals. What is Tommy’s gross income from working as a resident advisor? a. $0, the entire value of the contract is excluded from gross income. b. $800, only the meal contract must be included in gross income. c. $1,000, only the lodging contract must be included in gross income. d. $1,800, the entire value of the contract is compensation. e. None of the above.
On December 1, 2008, ABC Linens sold merchandise which costs $400 on account to the Green Hotel Co. for $600 with terms of 3/10, n/30. ABC Linens uses a perpetual inventory system. The journal entry to record this transaction on ABC Linens’ books will include:
eddy Industries has the following patents on its December 31, 2009, balance sheet. Patent Item Initial Cost Date Acquired Useful life at Date Acquired Patent A $40,800 3/1/06 17 years Patent B $15,000 7/1/07 10 years Patent C $14,400 9/1/08 4 years The following events occurred during the year ended December 31, 2010. 1. Research and development costs of $245,700 were incurred during the year. 2. Patent D was purchased on July 1 for $28,500. This patent has a useful life of 9 1/2 years. 3. As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B’s value may have occurred at December 31, 2010. The controller for Reddy estimated that the future cash flows from Patent B will be as follows. Year Expected Future Cash Flows 2011 $2,000 2012 2,000 2013 2,000 The proper discount rate to be used for these flows is 8%. (Round answers to 0 decimal places, e.g. 2,510.) Compute the carrying amount of Reddy’ patents on its December 31, 2009, balance sheet. $ Compute the carrying amount of Reddy’ patents on December 31, 2010. $
(CMA adapted) Rum Company has developed a new product that will be marketed for the first time during the next fiscal year. Although Rum’s Marketing Department estimates that 35,000 units could be sold at $36 per unit, Rum’s management has allocated only enough manufacturing capacity to produce a maximum of 25,000 units of the new product annually. The fixed costs associated with the new product are budgeted at $475,000 for the year. The variable costs of the new product are $16 per unit. Required: (1) How many units of the new product must Rum sell during the next fiscal year in order to breakeven on the product? _______ (2) What is the profit Rum would earn on the new product if all the manufacturing capacity allocated by management is used and the product is sold for $36 per unit? ________ (3) The Marketing Department would like more manufacturing capacity to be devoted to the new product. What would be the percentage increase in net income for the new product if its unit sales could be expanded by 10% without any increase in fixed expenses and without any change in the unit selling price and unit variable cost? _______ (4) Rum’s management has stipulated that the new product must earn a profit of at least $125,000 in the next fiscal year. What unit selling price would achieve this target profit if all of the manufacturing capacity allocated by management is used and all of the output can be sold at that selling price? _____
The income statement for Baxter Company for 2008 appears below. BAXTER COMPANY Income Statement For the year Ended December 31,2008 —————————————————– Sales (40,000 units)………………..$1,000,000 Variable Expenses……………………..700,000 ________ Contribuation Margin…………………..300,000 Fixed Expenses………………………..330,000 _________ Net income (loss)……………………$(30,000) ________ ________ Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers: 1. What was the company’s break-even point in sales dollars in 2008? 2. How many additional units would the company have had to sell in 2009 in order to earn net income of $30,000? 3. If the company is able to reduce variable costs by $2.50 per unit in 2009 and other costs and unit revenues remain unchanged how many units will the company have to sell in order to earn a net income of $35,000?
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