• Q : Problem related to normal separation costs....
    Accounting Basics :

    The exit interviews are estimated to cost $100 per employee in additional to normal separation costs of $5000. How much will the company pay in separation costs if these exit interviews are implemen

  • Q : Determine the carrying amount and tax base of the plant....
    Accounting Basics :

    On 1 July 2011, Kookaburra Ltd acquired an item of plant at a cost of $200 000. The machine has an expected useful life of eight years, and Kookaburra Ltd adopts the straight-line method of deprecat

  • Q : Depreciation on the income statement basics....
    Accounting Basics :

    Last year Ark charged $3,751,333 Depreciation on the Income Statement of Andrews. If early this year Ark sold all its depreicable assets for their book value, the effect on Andrews's financial state

  • Q : What would be the dividend yield....
    Accounting Basics :

    Assume Baldwin is paying a dividend of $1.50 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield?

  • Q : What type of audit report is issued....
    Accounting Basics :

    what type of audit report is issued when the auditors believe that the financial statements have been presented in conformity with generally accepted accounting principles in all respects, except th

  • Q : How much revenue is recognized....
    Accounting Basics :

    In the March income statement, how much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)

  • Q : What is the cost of issuing these deposit....
    Accounting Basics :

    Your financial firm needs to borrow $500 million by selling time deposit with 180-day maturities. If interest rates on comparable deposit are currently at 3.5%, what is the cost of issuing these dep

  • Q : How much industry currently produce in the core segment....
    Accounting Basics :

    Without Digby's product Drum how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in t

  • Q : What will be digby book value....
    Accounting Basics :

    Digby's balance sheet has $86,494,000 in equity. If next year, assets decrease by $4,000,000 and liabilities increase by $2,000,000, what will be Digby's book value?

  • Q : What will be the transfer price....
    Accounting Basics :

    Evergreen's policy is that internal transfers will be made at variable cost plus 20%. If Bark purchases the widgets from Fern, what will be the transfer price?

  • Q : What is the net change in equity....
    Accounting Basics :

    Evaluate every transaction and find the impact or effect on the assets, liabilities and equity

  • Q : What goes into determining an interest rate....
    Accounting Basics :

    Given the uncertainty surrounding the collectability of the note, did an exchange occur? How do we account for the different scenarios, exchange or no exchange?

  • Q : Amortization of gain through depreciation....
    Accounting Basics :

    Compute the amortization of gain through a depreciation adjustment for 2010 for consolidation purposes.  

  • Q : Cvp analysis when applying for a loan....
    Accounting Basics :

    In making her presentation to the bank for the loan of $15 000, Jill uses CVP analysis to show how the new equipment would reduce the direct costs of labour and materials but does not show the fixed

  • Q : Declaration legally binding....
    Accounting Basics :

    On 30 June 2014, the directors declared an ordinary dividend of $0.05 per share. The company's constitution gave them the power to make such a declaration legally binding.

  • Q : What balance should appear in investment in holistr account....
    Accounting Basics :

    On January 1, 2012, Alison, Inc., paid $70,500 for a 40 percent interest in Holister Corporation's common stock. This investee had assets with a book value of $224,500 and liabilities of $96,500.

  • Q : Production-volume variance....
    Accounting Basics :

    Given for the fixed factory overhead of a company: $201,000 applied, $198,000 flexible budget, $205,000 incurred. The production-volume variance is:

  • Q : Company tolerance rate and industry standards....
    Accounting Basics :

    What would your plan of action be if the Client contested your tolerance rate. And how can an auditor find a balance between the company's tolerance rate and industry standards?

  • Q : Determine the total increase or decrease in owners equity....
    Accounting Basics :

    Assuming a beginning balance of zero, determine the total increase or decrease in owner's equity for January.

  • Q : Treatment of cash distribution....
    Accounting Basics :

    Determine Lizzie's stock basis at the end of the year, and the treatment of her cash distribution.

  • Q : Federal income tax ramifications....
    Accounting Basics :

    On September 14, when the land is worth $240,000, it is distributed to David. Assuming that David's basis in his S corporation stock is $270,000 on the distribution date, discuss any Federal income

  • Q : Compute the machine''s internal rate of return....
    Accounting Basics :

    Compute the machine's internal rate of return. Would you recommend purchase of the machine? Explain.

  • Q : Nonseparately stated income or loss for the tax year....
    Accounting Basics :

    a. Compute Kitsch's nonseparately stated income or loss for the tax year. b. What would be the share of this year's income or loss items for James Billings, one of the Kitsch shareholders?

  • Q : Taxable gain sandy recognize from the sale....
    Accounting Basics :

    Three years after the contribution date, the land contributed by Sandy is sold by the partnership to a third party for $380,000. How much taxable gain will Sandy recognize from the sale?

  • Q : What tax issues should be considered....
    Accounting Basics :

    Penny's mother owns 40 of the remaining shares; unrelated individuals own the other 30 shares. What tax issues should be considered with respect to the corporation's purchase of Penny's shares?

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