• Q : Travel and entertainment expenditures....
    Accounting Basics :

    Jonathan was notified by the IRS that he should appear at the local IRS district office with support for his 2012 travel and entertainment expenses as well as his charitable deductions.

  • Q : Problem related to tax consequences of the incorporation....
    Accounting Basics :

    White corporation issues stock worth $350,000 to David and assumes the mortgage of $150,000 and the personal loan of $100,000. What are the tax consequences of the incorporation to David and to whit

  • Q : Result of the business combination....
    Accounting Basics :

    Valuate the synergies gained for the company as a result of the business combination and how the combined business is better positioned to compete in the global marketplace.

  • Q : Prepare the company first set of financial statements....
    Accounting Basics :

    On October 1, 2011, Santana Rey launched a computer services company, Business Solutions, that is organized as a proprietorship and provides consulting services, computer system installations, and c

  • Q : What is the business purpose doctrine....
    Accounting Basics :

    Given this, is a company that fails to take advantage of every available tax break guilty of doing a disservice to its shareholders? What is the business purpose doctrine?

  • Q : Journal entryto recognize bad debts....
    Accounting Basics :

    Assume that Business Solutions' Accounts Receivable balance at June 30, 2012, is $20,350 and that one account of $97 has been written off against the Allowance for Doubtful Accounts since March 31,

  • Q : Determining the stockholders equity....
    Accounting Basics :

    On January 1, 2010, NWK, Inc.'s assets were $300,000 and its stockholders' equity was $140,000. During the year, assets increased $15,000 and liabilities decreased $10,000. What was the stockholders

  • Q : What is the amount of investing cash flows....
    Accounting Basics :

    Beginning cash for the year was $34,000 and ending cash was $26,000. Financing cash flows were $18,000 and operating cash flows were $6,000. What is the amount of investing cash flows?

  • Q : How much are total costs to be assigned to inventory on hand....
    Accounting Basics :

    honrad company assembly department has materials cost at 4$ per unit and conversion cost at 8$ per unit. there are 30000 units in ending work in process, all of which are 33% complete as to conversi

  • Q : What is the cost of the second passenger....
    Accounting Basics :

    If you are driving in your own car to another city, how much will it really cost you to make that drive? Should you include the cost of the car, part of the cost of the car, none of it? What if a fr

  • Q : Marginal and average tax rates on taxable income....
    Accounting Basics :

    (1) interest charges of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes. What are the firm's income tax liability and its after-tax income? What are t

  • Q : What amount of the book-tax difference is permanent....
    Accounting Basics :

    In 2013, Carbonfab Manufacturers Inc. expensed $125,000 of depreciation for book purposes, but for tax purposes, it deducted $179,000.

  • Q : How would you decide to allocate indirect costs to division....
    Accounting Basics :

    Monet Hotel & Casino is situated on beautiful lake Tahoe in Nevada. The complex includes 2 300-room hotel, a casion and a restaurant. As Monet's new controller, you are asked to recommend the ba

  • Q : Direct manufacturing labor-hours problem....
    Accounting Basics :

    A single indirect-cost rate based on direct manufacturing labor-hours for the entire plant is:

  • Q : Objective as to avoid having cancer....
    Accounting Basics :

    Which city would you prefer to live in, assuming that your main objective as to avoid having cancer?

  • Q : Personal exemption and standard deduction....
    Accounting Basics :

    If Abigail files a return, the amounts of the personal exemption and standard deduction that she can claim.

  • Q : Financial reasons regarding federal income tax return....
    Accounting Basics :

    Caden and Lily are divorced on March 3, 2011. For financial reasons, however, Lily continues to live in Caden's apartment and receives her support from him. Caden does not claim Lily as a dependent

  • Q : Chloe federal income tax filing status....
    Accounting Basics :

    All of their support is furnished by Chloe. Dylan saves his earnings. Dylan reports the following information. What is Chloe's Federal income tax filing status for:

  • Q : Normal report itemized deductions....
    Accounting Basics :

    Each year, the Hundleys normally report itemized deductions of $10,000, including a $4,000 pledge payment to their church. Upon the advice of a friend, they do the following: in early January 2012,

  • Q : What is the equity income in steinbart....
    Accounting Basics :

    Inventory held at the end of one year by Alex is sold at the beginning of the next. Steinbart reports net income of $104,000 in 2012 and $137,300 in 2013 while paying $40,000 in dividends each year.

  • Q : Journal entry to record the replenishment of the petty cash....
    Accounting Basics :

    On 20 March, Batavia's petty cash fund of $100 is replenished when the fund contains $9 in cash and receipts for postage $51, freight-out $25, and travel expense $10. Prepare the journal entry to re

  • Q : What is the major issue involved in translation....
    Accounting Basics :

    XYZ Corporation, with a division located in Germany, must translate its financial statements from euros to U.S. dollars. What is the major issue involved in translation?

  • Q : Share of capital stock....
    Accounting Basics :

    What is the asset represented by share of capital stock that have not yet been issued?

  • Q : How much of the above retirement income must come....
    Accounting Basics :

    How much of the above retirement income must come from Client's retirement savings?

  • Q : Different types of legal arrangements....
    Accounting Basics :

    Different types of legal arrangements that can take place to create a business combination.

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