• Q : Determine the contribution-margin ratio....
    Accounting Basics :

    How do I determine the contribution-margin ratio? I have been given the sales, cost of goods sold, gross margin, selling and admin expenses (that include commissions and all other fixed expenses), i

  • Q : Criteria for the lessor in a capital lease....
    Accounting Basics :

    What are the two additional criteria for the lessor in a capital lease? How many of these criteria does the lease need to meet to be a capital lease? What happens if these criteria are not met?

  • Q : Determine appropriate treatment of product financing....
    Accounting Basics :

    Obtain the relevant authoritative literature on product financing arrangements using the FASB's Codification Research System. You might gain access at the FASB website (www.fasb.org). What is the sp

  • Q : Determine the investment net present value....
    Accounting Basics :

    Part A: What is the investment's net present value when the discount rate is 16%? Part B: Refer to your calculations. Is this an acceptable investment? Why or why not?

  • Q : What gain must bridget recognize....
    Accounting Basics :

    In 2010, Bridget sold land to her son Caleb for $150,000 cash and an installment note for $600,000. Bridget's adjusted basis was $550,000. In 2011, after paying $10,000 interest but nothing on the p

  • Q : What is a current liability....
    Accounting Basics :

    What is a current liability? What is a noncurrent liability? What is the difference between the two types of liabilities? In which financial statement would you find these liabilities? Can you have

  • Q : Determine how many units were started and completed....
    Accounting Basics :

    ynugai corporation uses process costing system to assign costs to its steel production. during March 2010, Ynugai beginning work in process inventory of 180,000 tons of steel (100 percent complete a

  • Q : Calculate cost of goods sold for april 2009....
    Accounting Basics :

    All raw materials are considered direct to the manufacturing process. During April, the company purchased $260,000 of raw materials. Direct labor cost for the month was $342,000; workers are paid $9

  • Q : Incremental effect on net income....
    Accounting Basics :

    What will be the incremental effect on net income if this segment is eliminated, assuming the fixed costs will be allocated to profitable segments?

  • Q : Advantages and disadvantages of cost-plus pricing....
    Accounting Basics :

    A company must incur annual fixed costs of $4,000,000 and variable costs of $400 per unit and estimates that it can sell 40,000 pumps annually and marks up cost by 30 percent. Using cost-plus pricin

  • Q : What is the project total present value....
    Accounting Basics :

    A project will require an initial investment of $400,000 and will return $100,000 each year for six years. If taxes are ignored and the required rate of return is 9%, what is the project's net prese

  • Q : Joint product cost using relative sales value method....
    Accounting Basics :

    Using the relative sales value method, calculate the joint product cost that would be allocated to Alpha and Beta. How do you know if one of the products should be further processed?

  • Q : What might the company do to reduce the pressures on manager....
    Accounting Basics :

    The chief executive officer is disturbed by the survey findings. In his opinion, such behavior cannot be condoned by the company. He concludes that the company should do something about this problem

  • Q : Possible tax and economic implications....
    Accounting Basics :

    The committee would like for you to summarize your conclusions regarding the potential effects - both good and bad - of these potential changes. In formulating your answer, please discuss all of the

  • Q : What is lacy''s recognized gain....
    Accounting Basics :

    .Lacy transfers equipment (basis $25,000, FMV $120,000) to Gray Corporation. In return Lacy receives 80% of Gray's stock (worth $70,000) and an automobile (FMV $15,000). In addition, there is an out

  • Q : Problem related to discretionary corpus distribution....
    Accounting Basics :

    The Harper Trust is required to distribute $80,000 annually, split equally between its two income beneficiaries, Amy and Ben. If trust income is not sufficient to pay these amounts, the trustee can

  • Q : Calculate cost of goods sold for april 2009....
    Accounting Basics :

    All raw materials are considered direct to the manufacturing process. During April, the company purchased $260,000 of raw materials. Direct labor cost for the month was $342,000; workers are paid $9

  • Q : Fundamentals of tax consequences....
    Accounting Basics :

    The title to the property was listed as "Mason and Paula, equal tenants in common." Mason died first in 2011, when the real estate was worth $3,000,000.(I) Were there any tax consequences in 2000? E

  • Q : What adjusting entry should tao make to account for work....
    Accounting Basics :

    Tao Co. receives $10,000 cash in advance for 4 months of legal services on October 1, 2013, and records it by debiting Cash and crediting Unearned Revenue both for $10,000. It is now December 31, 20

  • Q : Partnership adjusted basis problem....
    Accounting Basics :

    (I) What is Daniel's adjusted tax basis for his partnership interest immediately after the partnership is formed? (II) What is the partnership's adjusted basis for the property contributed by Daniel?

  • Q : Prepare a 2013 retained earnings statement....
    Accounting Basics :

    As supporting documents for Requirement 2, prepare separate supporting schedules for cost of goods sold, sell-ing expenses, general and administrative expenses, and depreciation expense.

  • Q : Production of passive investment income....
    Accounting Basics :

    Crew, an S corporation, has gross receipts of $190,000 and gross income of $170,000. Crew has AEP of $22,000 and ordinary income of $29,000. It has passive investment income of $100,000, with $40,00

  • Q : What is the labor rate variance....
    Accounting Basics :

    What is the labor rate variance (amount and favorable or unfavorable)? What is the labor efficiency variance (amount and favorable or unfavorable)?

  • Q : Prepare the journal entry for this transaction....
    Accounting Basics :

    Cottonwood transferred funds in the amount of $1,589 from their checking account to pay the loan amount due. (Hint: It is probably best to create an amortization schedule to handle this entry.)prepa

  • Q : Monetary assets separately from non-monetary assets....
    Accounting Basics :

    (a) Why is it necessary to consider monetary assets separately from non-monetary assets? (b) Why will holding monetary assets lead to a purchasing power loss, but holding non-monetary assets not lea

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