• Q : What are the tax aspects of the transaction....
    Accounting Basics :

    Yates Corporation in Cutoff, Louisiana, elects S status, effective for calendar year 2008. Yates' only asset has a basis of $50,200 and a fair market value of $110,400 as of January 1, 2008. The ass

  • Q : Identify any potential problems for terry or the corporation....
    Accounting Basics :

    On March 2, the two 50% shareholders of a calendar year corporation decide to elect S status. One of the shareholders, Terry, purchased her stock from a previous shareholder (a nonresident alien) on

  • Q : Recognize on the sale of the equipment....
    Accounting Basics :

    Grackle Corporation never used the equipment for any business purpose during the time it owned the equipment. What amount of loss may Grackle Corporation recognize on the sale of the equipment?

  • Q : Financial advantage-disadvantage of changing to jit system....
    Accounting Basics :

    1. What is the estimated financial advantage(disadvantage) of changing to a JIT system? 2. Are there any nonfinancial advantages(disadvantages) of changing to a JIT system?

  • Q : Make the required elimination entries in journal form....
    Accounting Basics :

    Complete the consolidated workpaper for P and S for the year 2011 and prepare the required elimination entries in journal form.

  • Q : Prepare the required elimination entries in journal form....
    Accounting Basics :

    Complete the consolidated statements workpaper for Pruitt Corporation and Soto Corporation for December 31, 2011 and prepare the required elimination entries in journal form Pruitt Corporation and S

  • Q : What is the proper treatment for capital loss....
    Accounting Basics :

    what is the proper treatment for the $10,000 long-term capital loss on the tax return?

  • Q : How much salary expense should be recorded....
    Accounting Basics :

    Employees at B Corporation are paid $5,000 cash every Friday for working Monday through Friday. The calendar year accounting period ends on Wednesday, December 31. How much salary expense should be

  • Q : What is trail''s taxable income....
    Accounting Basics :

    Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $180,000. In addition, Trail has a net capital gain of $60,000. what is Trail's taxable income ?

  • Q : What is sarah''s basis in the stock....
    Accounting Basics :

    Sarah transfers property with an $80,000 adjusted basis and a $100,000 FMV to Super Corporation in a Sec. 351 transaction. Sarah receives stock with an $85,000 FMV and a short-term note with a $15,0

  • Q : Balance sheet and income statement fundamental....
    Accounting Basics :

    What amounts, if any, related to this transaction would be reported on PC Mall's balance sheet and income statement in 2008? In 2009?

  • Q : What is ralph''s basis in the stock....
    Accounting Basics :

    Ralph transfers property with an adjusted basis of $65,000 and a FMV of $70,000 to Lake Corporation in a Sec. 351 transaction. Ralph receives stock worth $60,000 and a short-term note having a $10,0

  • Q : Straight-line amortization recorded at the end of the year....
    Accounting Basics :

    Make the entries on the issuer's books for the sale of the bonds, the payment of interest, amortization of premium or discount, and accrual of interest, and reacquisition as needed for 2004 and 2005

  • Q : What is carolyn''s basis in the stock....
    Accounting Basics :

    Carolyn transfers property with an adjusted basis of $50,000 and a FMV of $60,000 in exchange for Prime Corporation stock in a Sec. 351 transaction. what is Carolyn's basis in the stock ?

  • Q : Operating activities by the indirect method....
    Accounting Basics :

    During the year the company's accounts receivable increased by $ 50,000, inventory decreased by $ 23,000, accounts payable decreased by $ 55,000, and accrued expenses payable increased by $ 14,000.

  • Q : Operating activities by the direct method....
    Accounting Basics :

    During the same year, cash was paid out to purchase inventory for $ 335,000, to employees for $ 230,000, and for the purchase of plant assets of $ 190,000. Calculate the amount of cash provided by o

  • Q : What is the net cost of the goods within the discount period....
    Accounting Basics :

    Davies Company purchased merchandise inventory with an invoice price of $5,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Davies Company pays within the discount period?

  • Q : What would be the markup percentage on variable cost....
    Accounting Basics :

    If the target profit is $60,000 for a volume of 480 units, fixed costs are $168,000, and the variable cost per unit is $450, then what would be the markup percentage on variable cost ?

  • Q : Recognize realized gross proft....
    Accounting Basics :

    In 2013 Lake also repossessed $200,000 of jet skis that were sold in 2011. Those jet skis had a fair value of $75,000 at the time they were repossessed .  In 2010, Lake would recognize realize

  • Q : What price will the company charge....
    Accounting Basics :

    Variable selling and administrative cost 60; Allocated fixed selling and administrative cost 75. What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a

  • Q : Provisions regarding the division of net income....
    Accounting Basics :

    Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income:

  • Q : What price will the company charge....
    Accounting Basics :

    What price will the company charge if the firm uses cost-plus pricing based on total cost and a markup percentage of 60%?

  • Q : Compton and danson share in the division of income....
    Accounting Basics :

    Compton and Danson form a partnership in which Compton contributes $50,000 in assets and agrees to devote half time to the partnership. Danson contributed $40,000 in assets and agrees to devote full

  • Q : Accounts receivable for the new partnership....
    Accounting Basics :

    Of this amount, $1,150 is completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $750. The amount debited to Accou

  • Q : Determine the dividends per share for preferred....
    Accounting Basics :

    You have estimated Income for Yr 1, 2, and 3 and determined that the following amounts could be distributed as dividends:

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