• Q : Investment net present value problem....
    Accounting Basics :

    Compute the investment's net present value, rounding calculations to the nearest dollar.

  • Q : Net-present-value method....
    Accounting Basics :

    On December 31, 20X3, Greene sold his holdings and generated proceeds of $13,000. Greene uses the net-present-value method and desires a 16% return on investments.

  • Q : What should groovy movies charge as selling price per piza....
    Accounting Basics :

    The Groovy Movie Chains has invested in a snack bar for its store, where individual pizzas would be prepared and sold. The investment cost the company $64,000. The company expects a sales volume for

  • Q : What balances of joe''s and ed''s capital accounts would be....
    Accounting Basics :

    Ann, Joe, and Ed have partnership capital account balances of $150,000, $300,000 and $70,000 respectively. The income sharing ratio is Ann 50%, Joe 40%, and Ed 10%. Ann wants to withdraw from the pa

  • Q : What is the company''s debt ratio....
    Accounting Basics :

    A company has total assets of $5,600,482, common stock of $2,111,111, retained earnings of $1,058,473. What is the company's debt ratio?

  • Q : How will the corporation identify the distributions....
    Accounting Basics :

    Alanna Corp. distributed $10,000 cash to Joshua, its sloe Class A common stockholder in May, 2012. It also made a $10,000 cash distribution to Ben, its sole Class B common stockholder in December, 2

  • Q : What are son''s and daughter''s bases in the stock received....
    Accounting Basics :

    "Hobbes gave his son ABC stock valued at $100,000 that he purchased for $60,000 and his daughter EFG stock valued at $100,000 that he purchased $250,000. Hobbes paid $30,000 in gift taxes on each of

  • Q : What will be tip-top''s cost of equity....
    Accounting Basics :

    The Tip-Top Paving Co. wants to be levered at a debt to value ratio of .6. The cost of debt is 11%, the tax rate is 34%, and the cost of equity for an all equity firm is 14%. What will be Tip-Top's

  • Q : Determine charger company''s monthly break-even point....
    Accounting Basics :

    If the January 2012 net income amounts differ using absorption and variable costing, explain why. If they are identical, explain why.  

  • Q : Defective units as scrap or rebuilding....
    Accounting Basics :

    A company has the choice of either selling 1,900 defective units as scrap or rebuilding them. The company could sell the defective units as they are for $3 per unit.

  • Q : What will your firm''s new operating cycle be....
    Accounting Basics :

    Your firm currently has an operating cycle of 64 days. You are analyzing some operational changes which are expected to decrease the accounts receivable period by 3 days and decrease the inventory p

  • Q : Management decisions under activity-based management....
    Accounting Basics :

    Evaluating customer reaction of the trade-off of giving up some features of a product for a lower price would best fit which category of management decisions under activity-based management?

  • Q : Estimates actual overhead costs....
    Accounting Basics :

    Which method of allocation probably best estimates actual overhead costs used? Why?

  • Q : Determine the budgeted indirect cost allocation rate....
    Accounting Basics :

    Danielle Company produces a special spray nozzle. The budgeted indirect total cost of inserting the spray nozzle is $180,000. The budgeted number of nozzles to be inserted is 60,000. What is the bud

  • Q : Did the foreign currencies increase or decrease....
    Accounting Basics :

    Frankfurter Company, a U.S. company, had a ruble receivable from exports to Russia and a euro payable resulting from imports from Italy. Frankfurter recorded foreign exchange loss related to both it

  • Q : What was the computer division''s segment income....
    Accounting Basics :

    The Computer Division of Global Electronics Company had the following financial data for the year:? Assets available for use $1,000,000 Book Value

  • Q : Production-cost cross-subsidization....
    Accounting Basics :

    Production-cost cross-subsidization results from: a) allocating indirect costs to multiple products. b) assigning traced costs to each product.

  • Q : What are their combined taxable gifts....
    Accounting Basics :

    Charles gave his three grandsons $20,000 each, his friend, Joe, $15,000, and his daughter $30,000. His second wife, Marla, gave her three children $50,000 each and $50,000 to her church. What are th

  • Q : Kind of lease in the agreement problem....
    Accounting Basics :

    From the lessee's viewpoint,what kind of lease is the above agreement. From the lessor's viewpoint, what kind of lease is this agreement?

  • Q : Accrual basis of accounting problem....
    Accounting Basics :

    Show how each transaction woudl be handled using the accrual basis of accounting. Give the amount of revenue or exepnse for January. JOurnal entries are not required.

  • Q : How much may they claim for itemized deductions....
    Accounting Basics :

    Vera and Jake, a married couple with AGI of $321,000 for 2012, have $20,000 of mortgage interest, $8,000 of unreimbursed medical expenses, $4,000 of property taxes, and $9,000 of charitable contribu

  • Q : What is stewart''s year-end basis in his partnership interest....
    Accounting Basics :

    Stewart is a 30 percent general partner in STP Partnership. His basis in his partnership interest at the beginning of the year was $40,000. During the year, the partnership reported a $30,000 loss a

  • Q : Amortization of the net gain....
    Accounting Basics :

    Calculate the 2012 amortization of the net gain. The average remaining service life of employee is 10 years.

  • Q : How much of the december 15 distribution is taxable....
    Accounting Basics :

    Borneo Corporation has $21,000 in current earnings and profits and $5,000 of accumulated earnings and profits. Borneo distributes $20,000 of income to its shareholders on June 15 and another $10,000

  • Q : What is the last date it can file its return....
    Accounting Basics :

    A corporation has a June 30 year end. What is the last date it can file its return due for its June 30, 2012 year-end if it files an extension?

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