• Q : What is the amount taxable to each shareholder as a dividend....
    Accounting Basics :

    Jack and Jill each own one-half of the stock of JJ Corporation, which corporation has earnings and profits of $15,000. JJ Corporation distributed to its two shareholders property with a total fair m

  • Q : Optional tool in the accounting process....
    Accounting Basics :

    A 10-column spreadsheet used to draft a company's unadjusted trial balance, adjusting entries, adjusted trial balance and financial statements and which is an optional tool in the accounting process

  • Q : Insurance expense on the annual income statement....
    Accounting Basics :

    On April 1, 2011, a company paid the $1,350 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the y

  • Q : How much gain is recognized by jack....
    Accounting Basics :

    Jack transferred property with an adjusted basis of $45,000 to JKL Corporation. There was a $35,000 mortgage on the property. In exchange for the transferred property, Jack received stock with a fai

  • Q : What amount, if any, can abc corporation deduct....
    Accounting Basics :

    ABC Corporation made cash contributions of $35,000 to charitable organizations in 2012. ABC Corporation had taxable income of $280,000 without taking into account its charitable contributions for th

  • Q : Customers in exchange for goods or services....
    Accounting Basics :

    The principle that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash and (3) measures the amount

  • Q : Yirld of money in an interest-bearing account....
    Accounting Basics :

    If Apex deposits the money in an interest-bearing account yielding 8 percent, what will be the cash received from the sale, assuming no tax effect? The spot rate at the beginning of the transaction

  • Q : Money in an interest-bearing account....
    Accounting Basics :

    If Apex deposits the money in an interest-bearing account yielding 8 percent, what will be the cash received from the sale, assuming no tax effect? The spot rate at the beginning of the transaction

  • Q : How much is paula''s recognized gain....
    Accounting Basics :

    Paula receives a liquidating distribution from Pell Corporation as part of a redemption of all of its stock. Paula's basis for her Pell stock is $10,000. In exchange for her stock, Paula receives pr

  • Q : Dollar value of the purchase....
    Accounting Basics :

    How many dollars would XYZ have to pay the Japanese supplier, and what would be the dollar value of the purchase?

  • Q : What taxable income is....
    Accounting Basics :

    Best Company, Inc. had gross receipts of $400,000, cost of goods sold of $110,000, other expenses of $100,000 and a $90,000 net capital loss. what taxable income is:

  • Q : Effect of the rental activity....
    Accounting Basics :

    Kristen's AGI is $120,000 before considering the effect of the rental activity. What is Kristen's AGI after considering the tax effect of the rental use of her home?

  • Q : What bev''s tax consequences are....
    Accounting Basics :

    Dick, Bev and Mollie form Murphy Corporation. Dick transfers land worth $80,000 (adjusted basis is $25,000) for 80 shares, Mollie transfers $40,000 cash for 40 shares and Bev transfers equipment wor

  • Q : Problem on federal taxable income....
    Accounting Basics :

    Warbler Corporation, whose Federal taxable income totals $10 million. Warbler apportions 60% of it's business income to State C. Warbler generates $3 million of non business income each year, and 20

  • Q : What is pat''s recognized gain on the exchange....
    Accounting Basics :

    Pursuant to a plan of corporate reorganization, Pat exchanged 1,000 shares of Stream Corporation stock that she had purchased for $60,000, for 1,200 shares of Creek Corporation voting stock having a

  • Q : Compute beta corporation state f taxable income....
    Accounting Basics :

    Compute Beta Corporation's State F taxable income for the year.

  • Q : What is lou''s recognized gain or loss on this exchange....
    Accounting Basics :

    Pursuant to a plan of corporate reorganization which qualified as an A reorganization, Lou received one share of stock of X Corporation worth $65 and cash of $20 in exchange for a share of stock in

  • Q : What the resulting bases for evan''s stock and corporation....
    Accounting Basics :

    Evan transferred real estate to a corporation in a Code Section 351 transaction. The real estate was a capital asset in Evan's hands and will also be a capital asset when held by the corporation

  • Q : Equity in income of sacco....
    Accounting Basics :

    During 2010, Sacco reported income of $50,000 and paid dividends of $20,000 while in 2011 it reported income of $75,000 and dividends of $30,000. Assume Dawson has the ability to significantly infl

  • Q : What amount of loss can be recognized by kenny corp....
    Accounting Basics :

    The stock of Kenny Corp. is owned equally by two brothers. During 2008, they transferred land (which had a basis of $300,000 and a fair market value of $320,000) as a contribution to capital to Kenn

  • Q : What gain, if any, will bob recognize on the transfer....
    Accounting Basics :

    Ann and Irene form AIB Corporation transferring their respective business assets to AIB Corporation. Ann exchanges her property with a basis to Ann of $100,000 and fair market value of $400,000 for

  • Q : What is the roi for the shellfish division....
    Accounting Basics :

    The purchase of Shrimp Inc. will require an investment of $800,000, and the synergy between the two companies will increase Shellfish Division's operating income by $80,000. Bonuses in all of New O

  • Q : How much gain did mary recognize....
    Accounting Basics :

    Mary received a liquidating distribution from ABC Corporation as part of the redemption of all of the ABC Corporation's stock and the complete liquidation of ABC Corporation.

  • Q : Price premiums and discounts....
    Accounting Basics :

    Here, price premiums and discounts are indicated by pluses and minuses, respectively, and Period 0  represents Closed Fund's initiation date.

  • Q : How much was the total dividend income received....
    Accounting Basics :

    XYZ Corporation distributed to its shareholders a total of $30,000 in cash plus property that had a fair market value of $80,000 and a basis of $60,000.

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