• Q : Dollar range of costs to reduce budget....
    Accounting Basics :

    1. Give a dollar range of costs to reduce budgets ( worst and best case analysis). 2. You need to cut $94,000 in  cost. Prioritize those cuts that can be made without impacting the operation or

  • Q : Complete liquidation-open transaction....
    Accounting Basics :

    ABC,Inc. adopts a plan of complete liquidation on July 3, 10*1 and pursuant to the plan makes the following distributions to Anne Able, its sole shareholders, who has a basis of $26,000 for her stoc

  • Q : Journal entries for the stock-related transaction....
    Accounting Basics :

    (a)  Prepare necessary journal entries for the above stock-related transactions. (b) If Parallel Consulting had net income of $250,000 and paid cash dividends of $75,000 during the year, prepare

  • Q : Subsidiary liquidation-outstanding capital stock....
    Accounting Basics :

    ABC, Inc. owns 95% of the outstanding capital stock of XYZ, Inc. liquidates pursuant to IRC 332 and distributes property, as follows:

  • Q : Weighted-average unit contribution margin....
    Accounting Basics :

    Proops Company has a weighted-average unit contribution margin of $30 for its two products, Drew and Carey. Expected sales for Proops are 40,000 Drews and 60,000 Careys. Fixed expenses are $1,800,000

  • Q : Company new break-even point in dollars....
    Accounting Basics :

    Compute the company's new break-even point in dollars and the new margin of safety in both dollars and percent.

  • Q : Balance of retained earnings....
    Accounting Basics :

    a. Calculate the balance of Retained Earnings that would appear on a balance sheet at December 31, 2003.  Show it below. b. Prepare a classified balance sheet for Video Concepts at December 31,

  • Q : Capital gain rules and tax calculations....
    Accounting Basics :

    Problem: You are in the 28% income tax bracket and pay long-term capital gains taxes of 15%. What are the taxes owed or save in the current year for each of the following sets of transactions

  • Q : Total cost per equivalent unit for the month....
    Accounting Basics :

    1- Compute the total cost per equivalent unit for the month. 2- Compute the equivalent units of materials , labor, and overhead in the ending inventory for the month.   

  • Q : Is sabrina liable for the estate tax....
    Accounting Basics :

    The IRS assesses the $1 million estate tax against Sabrina under the rules relating to transferee liability. Is Sabrina liable for the estate tax?

  • Q : Fund equity section of the interim balance....
    Accounting Basics :

    The fund equity section of the interim balance sheet of the Freeman Town's General Fund, as of June 30, 2005, was:

  • Q : Amount of depreciation expense using straight-line method....
    Accounting Basics :

    Compute the amount of depreciation expense for the year ended December 31, 2006, using the straight-line method of depreciation.

  • Q : Tax-supported bonds....
    Accounting Basics :

    Assuming the bonds are tax-supported bonds sold to finance construction of a sports complex, the operations of which will be financed by a special revenue fund when the complex is completed:

  • Q : Predatory pricing and penetration pricing....
    Accounting Basics :

    Distinguish between predatory pricing and penetration pricing. How are they similar and/or different?

  • Q : Corporations taxable income and income tax....
    Accounting Basics :

    Bamboo Corporation has $130,000 of operating income, a $20,000 long term capital loss, a $10,000 dividend from a corporation in which it owns 5 percent of the shares, and a charitable contribution o

  • Q : Result in nontaxable income....
    Accounting Basics :

    All of the following result in nontaxable income except: a. Stock dividend b. Interest on municipal bonds c. Capital gain distribution reinvested in the mutual fund d. Distribution identified as a ret

  • Q : Summary of basic cost and revenue data....
    Accounting Basics :

    Please answer questions 5 to 8 using the following information: Daley Company manufactures computer monitors. The following is a summary of basic cost and revenue data.

  • Q : Major tax minimization strategies....
    Accounting Basics :

    What exactly are the major tax minimization strategies? My parents utilized trusts, but unfortunately they weren't given the best advice and my brother and I had a bit of a mess to deal with, and so

  • Q : Debt of emig company....
    Accounting Basics :

    Information concerning the debt of Emig Company is as follows: In preparing a statement of cash flows for the year ended December 31, 2008, for Emig Company, cash flows from financing activities woul

  • Q : Equity in subsidiary earnings....
    Accounting Basics :

    In Cale's accounting records, what amount would appear on December 31, 2003 (assuming amortization expense equals $1,600) for Equity in Subsidiary Earnings?

  • Q : Using high-low method estimate the linear relationship....
    Accounting Basics :

    Using the high-low method, estimate the linear relationship y = a + bX, where y is the total annual operating cost of a helicopter and X is the number of round-trips it makes to JFK airport during t

  • Q : Unit product cost for the month under absorption costing....
    Accounting Basics :

    What is the unit product cost for the month under absorption costing?

  • Q : Fifo method in process costing system....
    Accounting Basics :

    Maenhout Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below:

  • Q : Net operating losses disclosed on financial statements....
    Accounting Basics :

    How are the tax benefits of net operating losses (NOL) disclosed on financial statements? Which is more beneficial to an organization, a NOL carry-forward or a NOL carry-back? Why?

  • Q : Reported balance of wilkinson investment....
    Accounting Basics :

    In 2004, Bremm reported net income of $170,000. In 2005, Bremm reported net income of $210,000. Dividends of $70,000 were paid in each of these two years. What is the reported balance of Wilkinson's

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