• Q : What can al do to demonstrate large salary is reasonable....
    Accounting Basics :

    Al is the sole owner of a C corporation with profits of $200,000. He decides to take a salary of exactly $200,000 to eliminate double taxation. If audited, will the salary be challenged by the IRS?

  • Q : Contribution margin per service call....
    Accounting Basics :

    Byters on Call provides computer repairs on-site and has a contribution margin ratio of 32%, a contribution margin per service call of $5, and fixed costs of $21,160 per month. During March, it made

  • Q : What is the joe''s net income for august....
    Accounting Basics :

    During August, 2010, Joe's Supply Store generated revenues of $30,000. The company's expenses were as follows: cost of goods sold of $12,000 and operating expenses of $2,000. The company also had re

  • Q : What is the depreciable basis for the office equipment....
    Accounting Basics :

    Barber Corporation purchased all the assets of TECO Corporation for $1,820,000. An appraisal yielded the following: the building had a fair market value of $1,200,000; equipment a value of $1,000,00

  • Q : What is his computer basis for depreciation....
    Accounting Basics :

    Joe started a new business this year. He had purchased a computer two years ago for $4,000 and decided to use it in his business until he could afford a new system. He could purchase a new computer

  • Q : Using the high low method-what is the total fixed cost....
    Accounting Basics :

    Randall Sports has collected the following information over the las six months. Using the high-low method, what is the total fixed cost?

  • Q : Common fixed expenses problem....
    Accounting Basics :

    Lyons Company consists of two divisions, A and B. Lyons Company reported a contribution margin of $50,000 for Division A and had a contribution margin ratio of 30% in Division B, when sales in Divis

  • Q : Stimulating interest in the company....
    Accounting Basics :

    Oregon Inc $10 par common stock is selling for $110 per share. Four million shares are currently issued and outstanding. The company wants to know how their three different options will stimulate in

  • Q : Calculate the amount of deferred tax....
    Accounting Basics :

    On 30 June 2006, a company had plant whose carrying amount was $ 42,000. The original cost was $70,000, and Fair value $50,000.

  • Q : What is the economic ordering quantity for chips....
    Accounting Basics :

    If Aberwald holds a safety stock equal to a 30-day supply of chips, what is Aberwald's minimum cost of ordering and carrying inventory?

  • Q : Total-price-quantity variances for materials....
    Accounting Basics :

    Buerhle Company purchased (at a cost of $11,650) and used 2,380 pounds of materials during May. Buerhle's standard cost of materials per unit produced is based on 2 pounds per unit at a cost $5 per

  • Q : How much money will you invest in stock y....
    Accounting Basics :

    If Stock X has an expected return of 17.2 percent and a beta of 1.4, and Stock Y has an expected return of 13.6 percent and a beta of 0.95, how much money will you invest in Stock Y? How do you inte

  • Q : Compute the total overhead variance....
    Accounting Basics :

    In October, Keane Company reports 21,450 actual direct labor hours, and it incurs $114,400 of manufacturing overhead costs. Standard hours allowed for the work done is 20,400 hours. The predetermine

  • Q : How many units were completed and transferred....
    Accounting Basics :

    Injection Molding, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs.

  • Q : Net cash flow attributable to the asset purchase....
    Accounting Basics :

    What is the net cash flow attributable to the asset purchase in each year and the adjusted basis in the asset at the end of each year?

  • Q : Determine equivalent units in process for direct materials....
    Accounting Basics :

    Cedar Rapids Chemical placed 220,000 liters of direct materials into the mixing process. At the end of the month, 10,000 liters were still in process,

  • Q : Compute the total-price and quantity materials variances....
    Accounting Basics :

    Neville Company's standard materials cost per unit of output is $10 (2 pounds × $5). During July, the company purchases and uses 3,800 pounds of materials costing $19,570 in making 1,530 units

  • Q : What is the unit cost per equivalent unit in department a....
    Accounting Basics :

    Injection Molding, Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs.

  • Q : Standard direct materials price per gallon....
    Accounting Basics :

    Asaki Company accumulates the following data concerning raw materials in making one gallon of finished product: (1) Price-net purchase price $3.00, freight-in $0.30 and receiving and handling $0.40.

  • Q : Standard cost and a budgeted cost problem....
    Accounting Basics :

    Orasco Company uses both standards and budgets. For the year, estimated production of Product X is 500,000 units. Total estimated cost for materials and labor are $1,260,000 and $1,830,000. Compute

  • Q : Determine the capitalized cost....
    Accounting Basics :

    If Get Rich uses the full-cost approach to determine the asset cost, the capitalized cost is: successful-efforts approach to also determine the capitalized cost:

  • Q : Initial pledge by the local government....
    Accounting Basics :

    By the fiscal year-end of June 30, 2009, the local government had raised only $5,000 from other donors. What entry would be made for the initial pledge by the local government during the year ended

  • Q : What is the direct materials price variance....
    Accounting Basics :

    Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.  What

  • Q : Contribution margin-method of delivering pizzas....
    Accounting Basics :

    The new truck would have a eight-year useful life. It would save $6,300 per year over the present method of delivering pizzas. In addition, it would result in the sale of 2,300 more pizzas each year

  • Q : What are the debt-like features of a preferred share....
    Accounting Basics :

    What are the debt-like features of a preferred share and what are the equity-like features if the preferred shares are non-voting, cumulative, with a annual dividend entitlement of 3%, redeemable at

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