• Q : Total operating loss carryforward....
    Accounting Basics :

    In 2011,Bodily Corporation reported $300,000 pretax accounting income.The income tax rate that year was 30%.Bodily had an unused $120,000 net operating loss carryforward from 2009 when the tax payab

  • Q : Indirect costs allocated to the consumer department problem....
    Accounting Basics :

    Management estimates that it costs $500 to analyze and close a commerical loan. This amount has been included in the $250,000 of inderict costs. How much of the $250,000 indirect costs should be al

  • Q : Compute the unit product cost for the two products....
    Accounting Basics :

    Compute the unit product cost for the two products using the proposed ABC system.

  • Q : What are johns deductions....
    Accounting Basics :

    The following year, 2011, John settled with the insurance company for $2,000. What are John's deductions for 2010 and 2011 based on the above information if 1) the car was used for personal property

  • Q : What are the tax consequences of transactions....
    Accounting Basics :

    Penny, Miesha, and Sabrina transfer property to Owl Corporation for 75% of its stock. Nancy, their attorney, receives 25% of the stock in Owl for legal services rendered in incorporating the busines

  • Q : Net income and comprehensive income....
    Accounting Basics :

    Determine the following amounts for 2010: (a) net income; (b) comprehensive income; (c) other comprehensive income; and (d) accumulated other comprehensive income (end of 2010).

  • Q : Amount of monthly depreciation expense....
    Accounting Basics :

    Nelson Company purchased equipment on July 1 for $27,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment's salvage valu

  • Q : What will the desks net book value be at the end....
    Accounting Basics :

    Beck Bookstore purchased a desk at the beginning of 2006. The desk cost $800 and is expected to last seven years. It expected salvage value is $30. If Beck uses straight-line depreciation, what will

  • Q : Double-declining balance method concept....
    Accounting Basics :

    Fairfolk Credit Union purchased a video surveillance camera for security purposes at the beginning of 2008. The camera cost $9,000 and is expected to last four years. Assume that the camera has a sa

  • Q : Power of appointment estate and gift tax rules....
    Accounting Basics :

    Regarding the power of appointment estate and gift tax rules, which of the following statements is correct?

  • Q : Fixed costs that would be present in business....
    Accounting Basics :

    a. Name five variable costs that would be present in this business. Be specific. b. Name five fixed costs that would be present in this business.

  • Q : Poor internal control....
    Accounting Basics :

    Budd, the purchasing agent of Lake Hardware Wholesalers, has a relative who owns a retail hardware store. Budd arranged for hardware to be delivered by manufacturers to the retail store on a COD bas

  • Q : Firms net income exceed its free cash flow....
    Accounting Basics :

    In order to sustain operations and generate sales and cash flow, the firm required to make $1250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By ho

  • Q : Production during the year....
    Accounting Basics :

    Three kilos of raw materials are needed to produce each unit of finished product. If Tripod Exports plans to produce 280,000 units during the 2008-2009 fiscal year, how many kilos of materials will

  • Q : Corporation financial statements....
    Accounting Basics :

    Define the term "earnings per share" as it applies to a corporation with a capitalization structure composed of only one class of common stock and explain how earnings per share should be computed a

  • Q : What is the total amount to be budgeted....
    Accounting Basics :

    What is the total amount to be budgeted in pounds for direct materials to be purchased for the month?

  • Q : Journalize the adjusting entry for bad debts....
    Accounting Basics :

    Journalize the adjusting entry for bad debts at December 31, 2010, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,100 and the aging schedule indicates that

  • Q : What was the cost of direct material....
    Accounting Basics :

    Paige Printing applies overhead to production at a predetermined rate of 80 percent based on direct labor cost. Job 75, the only job still in process at the end of May, has been charged with direct

  • Q : Job costs in a service organization....
    Accounting Basics :

    Broadway Consultants had $30,000 in selling and administrative costs. All transactions were on account. Required: a. What are the revenue and cost per client? b. Prepare an income statement for Januar

  • Q : Describe the tax consequences to mound corporation....
    Accounting Basics :

    What type of reorganization has taken place? Describe the tax consequences to Mound Corporation, its former shareholders, and Mountain Corporation.

  • Q : Necessary adjusting journal entry on friday....
    Accounting Basics :

    Employee salaries owed for Monday thru Thursday of a five-day workweek; weekly payroll, $10,000. Paychecks are cut Fridays. Record the accrual on Thursday and the necessary adjusting journal entry o

  • Q : What amount will be reported for loss on income statement....
    Accounting Basics :

    Betty's Bunny Barn has experienced a $40,000 loss due to tornado damage to their inventory. Tornados have never before occurred in this area. Assuming that the company's tax rate is 30%, what amount

  • Q : Calculate inventory turnover and days in inventory....
    Accounting Basics :

    At December 31, 2011, the following information was available for J. Graff Company: ending inventory $53,800, beginning inventory $65,120, cost of goods sold $285,860, and sales revenue $381,580. Ca

  • Q : Appropriate adjusting journal entry....
    Accounting Basics :

    Bee-In-The-Bonnet Company purchased office supplies costing $6,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed

  • Q : What is the maturity risk premium....
    Accounting Basics :

    Assume that real risk-free rate = 3%. Inflation rate is expected to be 8% in year 1, 5% in year 2, and 4% thereafter. Also assume that all T-bonds are highly liquid and free of default risk. If 2-ye

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