• Q : Compute the unit product cost for one bicycle....
    Accounting Basics :

    Shastri Bicycle of Bombay, India, produces an inexpensive, yet rugged, bicycle for use on the city's crowded streets that it sells for 717 rupees. (Indian currency is denominated in rupees, denoted

  • Q : Incremental revenue associated with accepting special order....
    Accounting Basics :

    However, Core is operating at capacity and will incur an additional $55,000 in fixed manufacturing overhead if the order is accepted. What is the incremental revenue associated with accepting the sp

  • Q : Salvage value in computing the depreciation base....
    Accounting Basics :

    At the beginning of 2010, the company purchased a machine for $510,000 (salvage value of $51,000) that had a useful life of 5 years. The bookkeeper used straight-line depreciation, but failed to ded

  • Q : Accounting income and taxable income problem....
    Accounting Basics :

    Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 40%. Prepare the journal entry to record income taxes.

  • Q : Prepare the journal entries related to the stock options....
    Accounting Basics :

    On January 1, 2008, ABC Company issued 200,000 stock options to executives in a compensatory stock option plan. Each option allows an executive to buy one share of $5 par value common stock for an e

  • Q : Determining fixed cost element of power costs....
    Accounting Basics :

    At the high level of activity in October, 7,000 machine hours were run and power costs were $18,000. in March, a month of low activity, 2,000 machine hours were run and power costs amounted to $9,00

  • Q : How much gross profit will apache recognize....
    Accounting Basics :

    How much gross profit will Apache recognize in both 2013 and 2014 assuming point of delivery profit recognition?  

  • Q : Adjusted basis in partnership interest at the end of year....
    Accounting Basics :

    His current year Schedule K-1 reported an ordinary loss of $15,000, long-term capital gain of $3,000, qualifying dividends of $2,000, $500 of non-deductible expenses, a $10,000 cash contribution, an

  • Q : What is the new equity value of tyler on its balance sheet....
    Accounting Basics :

    Talmadge Company is acquiring the target Tyler, Inc in a merger. Tyler's market valuation is $6.0 bln , and its equity value on the balance sheet before any adjustments is 3.0 bln

  • Q : Appropriate basis for recording the acquisition....
    Accounting Basics :

    What is the most appropriate basis for recording the acquisition of 40 percent of the stock in another company if the acquisition was a noncash transaction?

  • Q : What is the premium over market value....
    Accounting Basics :

    If the prevailing market value of Tyler was $5.0 billion on the Nasdaq during the three months before merger announcement, what is the premium over market value that Talmadge paid for Tyler in doll

  • Q : Individual income tax concept....
    Accounting Basics :

    What is effect on the Karl's individual income tax with the following conditions?( tax year 2011)

  • Q : What is the amount of pension expense to be reported....
    Accounting Basics :

    Presented below is pension information related to Woods, Inc. for the year 2013

  • Q : Problem regarding cutting their losses....
    Accounting Basics :

    On 11/9/11, the Wheat's sold 3,000 shares of Smith Pharmaceuticals for $5,000. The stock was purchased by them on 12/4/09 for $25,000. The investment was motivated by a rumor that a specialty drug w

  • Q : What is the amount of pension expense....
    Accounting Basics :

    The expected return on plan assets and the settlement rate were both 9%. what is the amount of pension expense reported for 2013 ?  

  • Q : Implications of the information for revenues....
    Accounting Basics :

    Consider the implications of the above information for revenues. What assertions, if any, are likely to be misstated? As a result, what accounts are likely to be overstated or understated? Explain y

  • Q : What is the amount of post-retirement expense....
    Accounting Basics :

    Kathy's Kittens, Inc. has provided the following information for their post-retirement benefits plan for 2013.

  • Q : Prepare a pension worksheet for the pension plan....
    Accounting Basics :

    The interest (settlement) rate applicable to the plan is 10%. On January 1, 2014, the company amends its pension agreement so that service costs of $350,000 are created. Other data related to the pe

  • Q : Tax consequences of the transactions....
    Accounting Basics :

    Penny, Miesha, and Sabrina transfer property to Owl Corporation for 75% of its stock. Nancy, their attorney, receives 25% of the stock in Owl for legal services rendered in incorporating the busines

  • Q : What is the new equity value of tyler on its balance sheet....
    Accounting Basics :

    Talmadge Company is acquiring the target Tyler, Inc in a merger. Tyler's market valuation is $6.0 bln , and its equity value on the balance sheet before any adjustments is 3.0 bln

  • Q : Early extinguishment of debt basics....
    Accounting Basics :

    Gains or losses from the early extinguishment of debt can be accounted for in three ways: (1) amortized over remaining life of the debt; (2) amortized over the life of the new debt; or (3) recognize

  • Q : Prepare the journal entry to recognize the income tax....
    Accounting Basics :

    Airparts Corporation reported an operating loss of $21 million for financial reporting and tax purposes. Taxable income last year and the previous year, respectively, was $22 million and $17 million

  • Q : Calculate calzone trucking''s 2011 taxable income....
    Accounting Basics :

    The truck had a fair market value of $15,200 and an adjusted basis of $10,100 at the date of the sale. Calculate Calzone Trucking's 2011 taxable income. Indicate the amount and the effect of any car

  • Q : Present value of the restructured cash flows....
    Accounting Basics :

    On December 31, 2009, Blank Co, is in financial difficulty and cannot pay a note due that day. it is a $500,000 note with $50,000 accrued interest payable to NPC, Inc. NPC agrees to forgive the accr

  • Q : Problem regarding utility cost function....
    Accounting Basics :

    1. Which of the above costs is variable? Fixed? Mixed? Explain. 2. Combine the information above to get a utility cost function for January.

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