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Is it ethical for a CPA or CPA firm to help companies "manage" their reported earnings and financial condition? In responding to this question, first assume that the CPA or CPA firm is serving as a
Suppose, instead, that 10 percent of the taxes received by the state were collected on behalf of a city within the state. It is the policy of the state to remit the taxes to the city 30 days after i
Painting - $10,000, Property tax - $25,000. A full year of depreciation has been taken on the plant each year since 1995 using straight-line depreciation. Assume the residual value remains $50,000.
A) Calculate the income recognized by Edwards under the percentage-of-completion method of accounting in each of the years 2012, 2013, 2014
On November 30, 2013, Piani Incorporated purchased for cash of $25 per share all 400,000 shares of the outstanding common stock of Surge Company. Surge 's balance sheet at November 30, 2013, showed
when calculating the cost of land w/building on an asset and depreciation schedule; if purchased at $812,500 and fair value for the land is $72,000 and the building $828,000,
Lafayette, Inc. completed its first year of operations with a pretax loss of $800,000. The tax return showed a net operating loss of $750,000, which the company will carry forward.
They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 7%, $10 par preferred and $1 par va
Diane purchased a factory building on November 15, 1993, for $5,000,000. She sells the factory building on February 2, 2012. What is the cost recovery deduction for the year of the sale?
The actual manufacturing overhead was $136,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs by using predetermined rates. What was the over- or underapplied manufac
How much tax can be saved if John shifts $6,000 of income to his 24 year old dependent son? John is in the 25 percent tax bracket and his son has no other taxable income in 2010.
In year two the overall improvement costs raise to $400,000, or $100,000 over budget. 25 additional lots were sold in year two. Please allocate the costs and advise, what is the taxable income for y
The accounting for uncertain tax positions has been addressed by FIN 48, "Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 109." Under FIN 48 the evaluation of a
They acknowledge that the liquidity of a business was as important, if not more important, than long-term assets and liabilities from the point of view of the :
Assume that you are concerned with the account balances reported on an entity's balance sheet, more so than the amounts reported in the income statement. When it comes time to estimating bad debts,
If the benefits and risks of ownership have been transferred in a lease agreement, a capital lease should be recognized. Besides this, another conceptual consideration for recording capital leases f
For disclosing the periodic income tax expense on the income statement, one method advocated by proponents of the net-of-tax method theorize that this method should report:
When canceling debt before its maturity, debt retirement, it is theorized that the recall of the debt is a current decision. For that reason any gains or losses arising from the debt retirement shou
Explain to him why rate of return is fundamental to any long term business decision and why he needs to understand the how to use the present value method when making long-term decisions.
One of your clients was to form a new business. He spoke to his lawyer and was advised to check with CPA to determine the business form of organization. He gave you the following lists:
Prepare on Pioneer Company's books journal entries to record the investment related activities for 2014.
Consider the following information about a potential project: a) Calculate the project's return on investment. b) Based solely on ROI, is this project in the firm's best interests? Why or why not?
An individual, pursuant to a divorce decree, transfers ownership in his solely owned apartment building to his wife. The FMV of the property is $350,000, with an associated debt of $50,000. He purch
Hunter's Paradise purchased $568,000 of equipment 4 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $199,500. What is the aftertax cash flow from this
As part of the transaction, party 1 will transfer to the partnership the real property, plus the associated debt, for the partnership's real property plus $50,000 in cash. Please describe and comput