• Q : Total net effect of errors on net income....
    Accounting Basics :

    On December 31, 2013, a fully depreciated machine was sold for $35,000 but the sale was not recorded until January 15, 2014 when the cash was received. In 2012, a three-year insurance premium was p

  • Q : Calculate the depreciation expense....
    Accounting Basics :

    As of January 1, 2011, Survival Industries, Inc. purchased a boat at a cost of $360,000.  When purchased, the company was using the double-declining depreciation method. Key info on the asset a

  • Q : What basis will assign to the replacement property acquired....
    Accounting Basics :

    On March 1, 2013, the building in which Mr. T operated his grocery store was completely destroyed by fire. On September 1, 2015, Mr. T settled with his insurance company and received a check for $1

  • Q : Cumulative effect of accounting change-retained earning....
    Accounting Basics :

    The change will result in a $1,800,000 increase in the beginning inventory at January 1, 2013. Assume a 40% income tax rate. The cumulative effect of this accounting change on beginning retained ea

  • Q : Tax liability reported on gentry balance sheet....
    Accounting Basics :

    The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2012, 35% in 2013 and 2014, and 30% in 2015. The total deferred tax

  • Q : What is the current market price....
    Accounting Basics :

    Six years ago, Colt, Inc. sold an issue of 30-year, $1,000 par value bonds. The coupon rate of 5.25% is payable annually. Investors presently require a rate of return of 8.375%. What is the current

  • Q : What are some possible reasons....
    Accounting Basics :

    What are some possible reasons that the CEO may hold his viewpoint? What should be your response to the CEO? Do you think it is necessary to make an accrual for an estimated amount of the assessmen

  • Q : Develop an anti-aging drug....
    Accounting Basics :

    Godert pharmaceutical company has many scientists working in the labs trying to develop an anti-aging drug. The cost of this research and development must be.

  • Q : Support the charitable contribution....
    Accounting Basics :

    Charlie Davis expects the investments to yield similar returns in the future, and he is not partial towards keeping either stock. What should he do? What documentation is required to support the ch

  • Q : What is joyce''s cost recovery for 2013....
    Accounting Basics :

    On August 5, 2013, Joyce purchased a new office building for $4 million. On October 3, 2013, she began to rent out office space in the building. What is Joyce's cost recovery for 2013?

  • Q : Determine batista''s cost recovery for 2013....
    Accounting Basics :

    Batista Corporation acquired new computer equipment on June 13, 2013, for $50,000. Batista did not elect immediate expensing under Section 179. Batista also elects not to take the additional first-y

  • Q : Evidence that a liability exists and may be unrecorded....
    Accounting Basics :

    You are conducting an end-of-year audit. Assume that the terms of trade between a buyer and a seller are free on board (FOB) destination. What document provides evidence that a liability exists and

  • Q : Compute the casualty loss....
    Accounting Basics :

    Compute the casualty loss on Andrew's uninsured rental property under the following facts: Adjusted basis $300,000; FMV before the loss $400,000;FMV after the loss $0

  • Q : Depreciation expense related to the company sole asset....
    Accounting Basics :

    In year 1 Laylor Company ha revenues of $100,000, advertising expense of $22,000, depreciation of $15,000, and other expenses of $53,000. The advertising expense in year 1 is expected to benefit the

  • Q : How much gross income should jason report....
    Accounting Basics :

    How much gross income should Jason report as a result of the damages he received?

  • Q : Comparing federal and state tax research....
    Accounting Basics :

    Write a 3-5 page paper comparing and contrasting Federal and state tax research. Analyze the different constitutionality challenges with regard to Federal and state taxes. Assess the supremacy provi

  • Q : How much gross income should abena report....
    Accounting Basics :

    On the date of the concert, the tickets were selling for $250 each. Abena and her son attended the concert. How much gross income should Abena report as a result of the tickets?

  • Q : What is the maximum amount justin can deduct....
    Accounting Basics :

    Assume the facts stated in the prior question. Assume further that Justin has no other capital gains or losses in 2013 (or any prior years). What is the maximum amount (related to the bad debt) that

  • Q : Evaluate the specific accounting principles....
    Accounting Basics :

    Describe the areas in which the Adelphia communications engaged in fraudulent financial reporting and the circumstances that led to this. Evaluate the specific accounting principles (GAAP).

  • Q : How should justin treat the loss relating to this debt....
    Accounting Basics :

    How should Justin treat the loss relating to this debt (assume that the debt is a nonbusiness debt that is a bona fide debt that arose from a debtor-creditor relationship)?

  • Q : Production department and research....
    Accounting Basics :

    Management has decided to obtain a detailed report based on an intensive investigation of the financial position of the sales department, production department and research and development departmen

  • Q : What was sandra''s 2013 casualty loss deduction....
    Accounting Basics :

    Sandra's business incurred a casualty loss in 2013. Immediately before the casualty, her business truck had an adjusted basis of $30,000 and a fair market value of $35,000.

  • Q : Determine the tax consequences to virginia....
    Accounting Basics :

    Virginia, who was experiencing financial difficulties, was able to adjust her debts as follows. Determine the tax consequences to Virginia.

  • Q : What would otherwise be a capital loss....
    Accounting Basics :

    Kevin sold stock he owned in a small business that was formed as a corporation. Kevin sold the stock to Jennifer. Which Section of the U.S. Tax Code might allow Kevin to convert what would otherwise

  • Q : Recording the transaction....
    Accounting Basics :

    Bixby Corporation purchased land and a building for $800,000. An appraisal indicates that the land's value is $400,000 and the building's value is $500,000. When recording this transaction Galaxy sh

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