• Q : Depreciation recapture potential problem....
    Accounting Basics :

    the fair market value of the equipment was $150,000, the equipment was subject to a security agreement and note assumed by the corporation in the amount of $70,000, and there was depreciation recapt

  • Q : Should management accept this new project....
    Accounting Basics :

    Benet Division of United Refinery Company's operating results include: controllable margin, $200,000; sales $2,200,000; and operating assets, $800,000. The Benet Division's ROI is 25%. Management is

  • Q : Exchange for the property problem....
    Accounting Basics :

    On the same day, and in exchange for the property she transferred to DA Inc., Susan received a payment of $10,000 and 10 additional shares of SDA Inc.'s only class of stock. How much gain was recogn

  • Q : Share-holder as a result of the distribution....
    Accounting Basics :

    How much was the total dividend income received by the shareholder as a result of the distribution made by Smith Corpo?

  • Q : Determine the costs per equivalent unit for may....
    Accounting Basics :

    1. Compute the equivalent units for May's activity for the first department. 2. Determine the costs per equivalent unit for May.

  • Q : Business subscriptions and professional dues....
    Accounting Basics :

    Tina is reimbursed for $1,500 of business travel and $500 for various business subscriptions and professional dues. The $2,000 reimbursement should be treated as follows:

  • Q : Amount of gain or loss-subject to ordinary tax rates....
    Accounting Basics :

    a. On what form would the gain or loss originally be reported? b. What is the amount of gain or loss on the sale? c. What amount of the gain or loss is subject to ordinary tax rates?

  • Q : Ordering and receiving overhead....
    Accounting Basics :

    Direct labor hours used on each product are 50,000 for P1, 40,000 for Q2, and 110,000 for R3. How much ordering and receiving overhead is assigned to each product?

  • Q : Compute the ending ar and any shortage or overage....
    Accounting Basics :

    It is always a good idea to verify amounts in the general ledger just to be sure there are no problems or stupid mistakes (since in the real world, there is no answer book). So test the accuracy of

  • Q : Significant participation activities....
    Accounting Basics :

    Ahmad owns four activities. He participated for 120 hours in Activity A, 150 hours in Activity B, 140 hours in Activity C, and 100 hours in Activity D. Which of the following statements is correct?

  • Q : Equivalent units of the assembly department....
    Accounting Basics :

    On May 31, the ending work in process contained 40,000 units that were 25 percent complete. Using the average cost method, the equivalent units of the Assembly Department are ??

  • Q : Problem related to joint income tax return....
    Accounting Basics :

    Rex and Dena are married and have two children, Michelle (age 7) and Nancy (age 5). During 2012, Rex earned a salary of $24,000, received interest income of $300, and filed a joint income tax return

  • Q : What is the balance in new''s investment....
    Accounting Basics :

    On January 1, 2010, New Company purchased $200,000 of ten-year 10% bonds of Old Company for $226,840. Interest is payable annually.

  • Q : Straight-line method over a five-year period....
    Accounting Basics :

    Popeye Company purchased a machine for $480,000 on January 1, 2012. Popeye depreciates machines of this type by the straight-line method over a five-year period using no salvage value.

  • Q : Amortization expense for copyright....
    Accounting Basics :

    On January 5, 2013, the company determined that the copyright would expire at the end of 2018. How much should Hepburn record as amortization expense for this copyright for 2013? (Round your answer

  • Q : Intercompany machine sale....
    Accounting Basics :

    On December 31, 2013, Seal Company sold the machine to a nonaffiliated firm for $35,000. On the consolidated statements, how much gain or loss on the intercompany machine sale should be recognized i

  • Q : Managerial compensation and performance evaluation....
    Accounting Basics :

    What role does the budgeting activity play in managerial compensation and performance evaluation?

  • Q : Compute the annual rate of return on investment....
    Accounting Basics :

    What would be the key considerations in answering yes or no? Would your answer depend on who is making the promise to repay? For purpose of comparison, compute the annual rate of return on this inve

  • Q : Company expect to collect on receivables....
    Accounting Basics :

    Kennedy Company has the following collection pattern for its accounts receivable: Kennedy Company has the following collection pattern for its accounts receivable:How much should the company expect to

  • Q : Compute the volume of sales in units....
    Accounting Basics :

    Letterman Company produces and sells two products: A and B in the ratio of 3A to 5B. Selling prices for A and B are, respectively, $1,200 and $240; respective variable costs are $480 and $160. The

  • Q : Fixed budget performance report....
    Accounting Basics :

    Bay City Company's fixed budget performance report for July follows. The $647,500 budgeted expenses include $487,500 variable expenses and $160,000 fixed expenses. Actual expenses include $158,000 f

  • Q : Objective of accounting standards....
    Accounting Basics :

    Accounting Standards, it is also necessary to have a sound foundation, referred to as the conceptual framework. Let's discuss it step by step starting with the objective. What is the objective of ac

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

    Which of the materials and labor variances should be investigated if management considers a variance of more than 4% from standard to be significant?  

  • Q : Expected and actual rate of return on plan assets....
    Accounting Basics :

    Becky Company began a defined benefit pension plan on January 1, 2010. No prior service credit was granted to employees. Service costs amounted to $34,000 in 2010 and $37,000 in 2011. All contributi

  • Q : Ratio analysis to measure profitability-liquidity kellogs....
    Accounting Basics :

    Write a paper of no more than 1250 words in which you conduct a comparative and ratio analysis to measure profitability and liquidity for Kelloggs ?

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