• Q : What is the company''s cost of common equity....
    Accounting Basics :

    Percy Motors has a target capital structure of 40 percent debt and 60 percent equity. The yield to maturity on the company's outstanding bonds is 9 percent, and the company's tax rate is 40 percent.

  • Q : Understanding of internal control problem....
    Accounting Basics :

    Assume that you have assessed inherent risk at a very high level. While obtaining an understanding of internal control, you have determined that it appearts to be very strong. Nonetheless, due to th

  • Q : What is the amount of product warranty expense....
    Accounting Basics :

    In 2008 , company A sold 100,000 DVD pliers for $80 each. Company A provides a 2-year warranty on the players. It estimates that approximately 5 percent will require repairs and that the average cos

  • Q : Determine the liabilities for stoneland corporation....
    Accounting Basics :

    As of December 31, 2006, Stoneland Corporation has assets of $3,500 and stockholders' equity of $2,000. What are the liabilities for Stoneland Corporation as of December 31, 2006?

  • Q : Compute the revised annual depreciation....
    Accounting Basics :

    On Jan 1, 2010 the ABC Company ledger shows Equipment $36,000 and Accumulated Depreciation $14,000. The depreciation resulted from using straight line method with a useful life of 10 years and a sal

  • Q : Understanding of internal control....
    Accounting Basics :

    Assume that you have assessed inherent risk at a very high level. While obtaining an understanding of internal control, you have determined that it appearts to be very strong. Nonetheless, due to th

  • Q : Determine the cost recovery deduction for 2009....
    Accounting Basics :

    Pat purchased a used five-year class asset on March 15, 2009, for $60,000. He did not elect § 179 expensing. Determine the cost recovery deduction for 2009 for earnings and profits purposes.

  • Q : How much, if any, qualifies as a deduction....
    Accounting Basics :

    he works weekdays in Boise and returns home on weekends. He spends $410 returning to Salt Lake City but would have spent $390 had he stayed in Boise for the weekend. As to the weekend trips, how muc

  • Q : What is the regular income tax liability....
    Accounting Basics :

    If a taxpayer has tentative AMT of $60,000 and AMT of $15,000, what is the regular income tax liability?

  • Q : Maximum capital cost allowance on the furniture....
    Accounting Basics :

    On October 1 of the current year, the proprietorship purchased furniture and fixtures for $40,000. What will the maximum capital cost allowance on the furniture and fixtures for the current year end

  • Q : Compute phil''s medical expenses for the trip....
    Accounting Basics :

    Phil is advised by his family physician that his dependent son, Tony, needs surgery for a benign tumor in his leg. Phil and his son travel to Rochester, Minnesota, for in-patient treatment at the Ma

  • Q : What amy''s deductible mileage for each workday is....
    Accounting Basics :

    she is permanently assigned to the team auditing Garnet Corporation. As a result, every day she drives from her home to Garnet and returns home after work. Mileage is as follows:

  • Q : What is erin''s tax preference for excess depletion....
    Accounting Basics :

    Gross income from the property was $120,000 and net income before the percentage depletion deduction was $50,000. What is Erin's tax preference for excess depletion?

  • Q : What is the amount of byron''s deduction....
    Accounting Basics :

    Byron owned stock in Blossom Corporation that he donated to a museum (a qualified charitable organization) on June 8 this year. What is the amount of Byron's deduction assuming that he had purchased

  • Q : Dividends were declared or paid to the stockholders....
    Accounting Basics :

    December 31, 2010, amounts due from customers from sales of books, $26,000; unused portion of store and office equipment, $48,000; December 31, 2010, amounts owed to publishers for books purchased,

  • Q : What michael''s deductible mileage is....
    Accounting Basics :

    Michael is the city sales manager for "Chick-Stick," a national fast food franchise. Every working day, Michael drives his car as follows:

  • Q : What her tentative amt is....
    Accounting Basics :

    For regular income tax purposes, Yolanda, who is single, is in the 35% tax bracket. Her AMT base is $220,000. what Her tentative AMT is ?

  • Q : What the amt adjustment for circulation expenditures....
    Accounting Basics :

    Sherry decides to capitalize the expenditures and to amortize them over 3 years for regular income tax purposes. what the AMT adjustment for circulation expenditures for the first year of operations

  • Q : How should able report this item on his 2008 tax return....
    Accounting Basics :

    On September 3, 2008, Able purchased § 1244 stock in Red Corporation for $6,000. On December 31, 2008, the stock was worth $8,500. On August 15, 2009, Able was notified that the stock was worth

  • Q : Interest receivable account based question....
    Accounting Basics :

    The Interest Receivable account for February showed transactions totaling $8,500 and an adjustment of $11,200. All of the following responses are correct except:

  • Q : Determine the cost recovery deduction for the year....
    Accounting Basics :

    Diane purchased a factory building on November 15, 1993, for $5,000,000. She sells the factory building on February 2, 2009. Determine the cost recovery deduction for the year of the sale.

  • Q : Determine the cost recovery deduction for 2009....
    Accounting Basics :

    On May 15, 2009, Brent purchased new farm equipment for $40,000. Brent used the equipment in connection with his farming business. Brent does not elect to expense assets under § 179. Brent does

  • Q : Determine the cost recovery deduction for 2010....
    Accounting Basics :

    On June 1, 2009, Irene places in service a new automobile that cost $21,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car.

  • Q : How much of the property taxes may julio deduct....
    Accounting Basics :

    On April 30, 2009, Julio sells his house to Anita for $230,000. On June 1, 2009, Anita pays the entire real estate tax of $7,300 for the year ending December 31, 2009. How much of the property taxes

  • Q : Cash method of accounting....
    Accounting Basics :

    Falcon Corporation, a C corporation, had gross receipts of $3 million in 2007, $7 million in 2008, and $6 million in 2009. Hawk Corporation, a personal service corporation (PSC), had gross receipts

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