• Q : Discuss arnold''s tax consequences....
    Accounting Basics :

    Arnold owns 35% of the stock of Yellow Corp. ( a C corp.) which earns $140,000 during 2009. He also owns a 35% interest in Pastel Partnership, which earns $140,000 during 2009. During 2009, Yellow d

  • Q : Determine the proper amounts that the firm would report....
    Accounting Basics :

    Determine the proper amounts that the firm would report in the financial statements prepared at December 31, Year 1. Assume all the accounting was done correctly and that the accounts were properly

  • Q : What the real risk-free rate of return is....
    Accounting Basics :

    You read in the Wall Street Journal that 30-day US treasury bills are currently yielding 8%. Your brother in law, a broker, a broker at Kyoto Securities, has given you the following estimates of cur

  • Q : Prepare the journal entries for plano for the years....
    Accounting Basics :

    On July 1, 2010, Plano sold 10 percent (20,000 shares) of Sumter's outstanding shares for $425,000 in cash. Although it sold this interest, Plano maintained the ability to significantly influence Su

  • Q : Record the issuance of the bond....
    Accounting Basics :

    Best Company on March 1, 2010 issues $800,000 bonds at 103 maturing 10 years from January 1, 2010. These bonds have an annual interest rate of 8 percent payable semiannually on January 1 and July 1.

  • Q : Compare the effects of a stock dividend....
    Accounting Basics :

    Develop the stockholders' equity category of Campbell's balance sheet (a) after the stock dividend and (b) after the stock split

  • Q : How many major funds would be reported....
    Accounting Basics :

    Assume that a gov't entity has, in addition to the General Fund, four other governmental funds. Upon applying the quantitative criteria to determine the minimum requirements for major fund reporting

  • Q : How many funds may be reported as major funds....
    Accounting Basics :

    A city has, in addition to the General Fund, three other governmental funds. Two of those three governmental funds have been deemed to be major funds. At most, how many funds may be reported as majo

  • Q : What the general long-term liability accounts would report....
    Accounting Basics :

    A gov't entity issued general obligation bonds with a face value of $10,000,000 and at a premium that totaled $100,000 for a governmental capital project. The General Long-Term Liability accounts wo

  • Q : What would recognize expenditures in the current year....
    Accounting Basics :

    Assume that Onyx County's annual required contribution for their OPEB plan was determined to be $35,000. The County, however, chose to only fund $10,000 of that amount for the current year. The Gene

  • Q : What the general fund would recognize....
    Accounting Basics :

    A city's annual required contribution for the OPEB plan offered to their General Fund employees is $14,000. The city does not choose to make the annual required contribution but instead will continu

  • Q : What the general fund would report accrued interest payable....
    Accounting Basics :

    The General Fund borrowed $10,000 on a six-month note, with 5% interest, on April 1. As of June 30 fiscal year end, the General Fund would report accrued interest payable in the amount of:

  • Q : What is the net income for this firm....
    Accounting Basics :

    Papa Roach Exterminators, Inc., has sales of $586,000, costs of $247,000, depreciation expense of $43,000, interest expense of $32,000, and a tax rate of 35 percent. What is the net income for this

  • Q : What is the value of the shareholders'' equity account....
    Accounting Basics :

    Penguin Pucks, Inc., has current assets of $5,100, next fixed assets of $23,800, current liabilities of $4,300, and long-term debt of $7,400. What is the value of the shareholders' equity account fo

  • Q : What is the market value....
    Accounting Basics :

    Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Romulans today for $4.9 million. Klingon's current balance sheet shows net fi

  • Q : What is the net profit margin....
    Accounting Basics :

    So long, Inc., has sales of $27,500, costs of $13,280, depreciation expense of $2,300, and interest expense of $1,105. If the tax rate is 35 percent, what is the operating margin? What is the net pr

  • Q : What was ge''s enterprise value....
    Accounting Basics :

    In March 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding, and a market price of $36 per share. GE also had cash of $13 billion, and total debt

  • Q : What is global''s share price in 2006....
    Accounting Basics :

    If Global's P/E ratio and number of shares outstanding remain unchanged, what is Global's share price in 2006?

  • Q : Compare the market capitalization-to-revenue ratio....
    Accounting Basics :

    Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for American Airlines and British Airways.

  • Q : What is the balance of retained earnings....
    Accounting Basics :

    In April 2006, ABC Motors had Total Sales of $100,000; Total Expenses of $60,000 and a beginning balance of Retained Earnings of $25,000. The company will pay a $10,000 dividend this month (the divi

  • Q : Compute any deferred taxes resulting from the lease....
    Accounting Basics :

    Company 1 capitalizes the lease, whereas company 2 records the lease as an operating lease. Both firms depreciate assets by the straight-line method, and both treat the lease as an operating lease f

  • Q : How much is azul''s taxable income....
    Accounting Basics :

    Azul corporation had $450,000 of active income, $65,000 of portfolio income, and a $70,000 passive loss during the year. HOw much is Azul's taxable income?

  • Q : How many dresses must the bridal shoppe sell....
    Accounting Basics :

    Stephanie's Bridal Shoppe sells wedding dresses. The average selling price of each dress is $1,000, variable costs are $400, and fixed costs are $90,000. How many dresses must the Bridal Shoppe sel

  • Q : What was their beginning cash balance....
    Accounting Basics :

    In 2006 Bombay Corporation had cash receipts of $14,000 and cash disbursements of $8,000. Their ending cash balance at December 31, 2006 was $22,000. What was their beginning cash balance?

  • Q : What was the variable overhead rate variance....
    Accounting Basics :

    Sucher Company uses a standard cost system in which manufacturing overhead costs are applied to units of product on the basis of standard machine-hours.

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