• Q : Problem related to treasury stock transactions....
    Accounting Basics :

    If the cost method is used to record treasury stock transactions, to record the sale of the 5,000 treasury shares, David should credit what amount(s)?

  • Q : Amount of retained earnings available for dividends....
    Accounting Basics :

    declared and issued a small stock dividend of 1,500 shares ($10 par value) when the fair value of the stock was $30 per share. what is the amount of retained earnings available for dividends at the

  • Q : Total stockholders equity will increase by what amount....
    Accounting Basics :

    On the date of the exchange, the common stock had a fair value of $55 per share (the shares were originally issued at $30 per share). As a result of this exchange, Mary"s total stockholders' equity

  • Q : Retained earnings decrease by what amount....
    Accounting Basics :

    Four months later, John declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decrease by what amount?

  • Q : Auction website for amount....
    Accounting Basics :

    Olga researched the playground set online and discovered it was worth $300. In July 2013, Olga sold the playground set through an auction website for that amount (i.e., $300). Which of the following

  • Q : Exchanges undeveloped real estate....
    Accounting Basics :

    Eric exchanges undeveloped real estate for developed real estate on May 3, 2013. On May 3, 2013, the fair market value of each property is $500,000. Eric had purchased the undeveloped real estate on

  • Q : Katherines mortgage on the land....
    Accounting Basics :

    Andrew is negotiating to buy land from Katherine. What will Andrew's basis be in the land, if Andrew gives Katherine $70,000 and Andrew assumes Katherine's mortgage on the land of $30,000?

  • Q : Amount of actual exemption for the amt....
    Accounting Basics :

    Assume that a couple that filed a joint return had 2013 AMTI of $300,000. What was the amount of their actual 2013 exemption for the AMT?

  • Q : Maximum interest expense deduction....
    Accounting Basics :

    Assume further that, in 2013, Betsy and Dennis had net investment income of $2,000. Assume they itemize deductions, what is their maximum interest expense deduction in 2013?

  • Q : Problem on risk for partnership....
    Accounting Basics :

    Dave's share of net income from Partnership X during 2013 is $15,000. Dave's share of losses from Partnership Z during 2013 is $50,000. How much is Dave at risk for Partnership X on January 1, 2014?

  • Q : Adjustment for the alternative minimum tax....
    Accounting Basics :

    Which of the following would MOST LIKELY require an adjustment for the alternative minimum tax?

  • Q : Additional shares of identical common stock....
    Accounting Basics :

    On September 5, 2007, Michael paid $5,500 for 100 shares of TXX-5761 Inc. common stock. On June 13, 2013, Michael received a nontaxable 10% common stock dividend (i.e., 10 additional shares of ident

  • Q : Purchasing a piece of land....
    Accounting Basics :

    Andrew recently purchased a piece of land, a building and a truck for a lump sum of $500,000. The fair market value of the land was $180,000, the fair market value of the building was $500,000, and

  • Q : Problem related to inheritation of the land....
    Accounting Basics :

    Katherine purchased land for $100,000 in 1985. The land was valued at $700,000 on July 1, 2013, when Katherine died. Katherine's son John inherited the land in 2013. What basis would John have in th

  • Q : Joint return and itemize deductions....
    Accounting Basics :

    Assume there were no selling expenses. How much of a LOSS may Jennifer and Michael recognize on the sale to Olga (assume that Jennifer and Michael are married and file a joint return and itemize ded

  • Q : Condemned by the proper local authorities....
    Accounting Basics :

    Pavlina's business property (located in Alexanderland USA) was condemned by the proper local authorities.

  • Q : Basis in new residence concept....
    Accounting Basics :

    In early 2013, Irma sold her personal residence to David for $300,000. At the time of the sale, Irma's adjusted basis was $50,000. Within three months of the sale, Irma moved into a new residence sh

  • Q : Single taxpayer in the tax bracket....
    Accounting Basics :

    Elaine is a single taxpayer in the 33% tax bracket. Elaine wants to minimize her 2013 tax liability. Which of the following provides the LARGEST tax benefit to Elaine (assume that she may legally ta

  • Q : Maximum capital loss amount....
    Accounting Basics :

    Yessenia has no other capital gains or losses (in 2013 or prior years). For 2013, what is the maximum capital loss amount that Yessenia may use to offset her other income?

  • Q : Depreciation or other deductions....
    Accounting Basics :

    Katherine and Dave started living in the house immediately after purchasing it and never made any capital improvements to the house or took any depreciation (or other deductions) against it.

  • Q : Dennis realized gain on the exchange....
    Accounting Basics :

    Dennis traded in computer equipment with an adjusted basis of $15,000 (and a value of $15,000) for other (like-kind) computer equipment then valued at $7,000. Dennis also received $8,000 in cash as

  • Q : Recognized gain on the exchange basics....
    Accounting Basics :

    Michael traded in office equipment with an adjusted basis of $50,000 (and value of $60,000) for other (like-kind) office equipment then valued at $40,000. Michael also received $20,000 in cash as pa

  • Q : Gain or loss related to transfer....
    Accounting Basics :

    Now, assume that in the previous question Jennifer sold the stock to Olga for $90,000 (instead of $60,000). What is the gain or loss that Jennifer should report (again, ignore any gift tax that may

  • Q : What is the gain or loss that jennifer report....
    Accounting Basics :

    What is the gain or loss that Jennifer should report for 2013 if she sold the stock to Olga in 2013 for $60,000 (ignore any gift tax that may have been paid on the transfer from Betsy to Jennifer)?

  • Q : Dependent care credit amount problem....
    Accounting Basics :

    Assume their 2013 AGI equaled $28,000. Assume they incurred $9,000 of child care expenses during 2013 for their ONE dependent child, Pavlina (who is 5 years old). What is their child and dependent c

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