• Q : Which of the following statements is true....
    Accounting Basics :

    Hannah's Homemade Cookies produces and sells delicious shortbread cookies. The cost of producing a bag of cookies is $.65 and the bag sells for $3.75. Hannah is considering processing all the cookie

  • Q : What are total fixed expenses....
    Accounting Basics :

    If the sale price per unit is $21.50, the variable expense per unit is $16.75, and the breakeven point in sales is $634,250, what are total fixed expenses?

  • Q : How much is total overhead costs at this level of activity....
    Accounting Basics :

    Cunningham Manufacturing Company prepared a fixed budget of 80,000 direct labor hours, with estimated overhead costs of $400,000 for variable overhead and $120,000 for fixed overhead. Cunningham the

  • Q : First of day of the partnership tax year....
    Accounting Basics :

    What is P-4's portion of the depreciation of this machine if the depreciation rate for the year is 10% of the adjusted basis, and P-4's interest was acquired at the first of day of the partnership's

  • Q : Determine the net cash flow provided....
    Accounting Basics :

    Last year Burbach Company's cash account increased by $10,000. Net cash provided by investing activities was $16,000. Net cash used in financing activities was $34,000. On the statement of cash flow

  • Q : Prepare the closing entries for the temporary accounts....
    Accounting Basics :

    E4-19B On December 31, the adjusted trial balance of E-Z Employment Agency shows the following selected data. Accounts Receivable $25,000 Service Revenue $90,000;Interest Expense 7,500 Interest Payabl

  • Q : Tax consequences of receiving a cash payment....
    Accounting Basics :

    If a service oriented partnership has the following balance sheet, what are P-1's (a general partner) tax consequences of receiving a $20,000 cash payment as a retiring partner. Assume that P-1 is a

  • Q : Compute the depreciation expense relating to the equipmen....
    Accounting Basics :

    A company purchased equipment for $325,000 on January 2, 2013. The company expects the equipment to last for eight years or 60,000 hours of operation, with an estimated salvage value of $25,000. Dur

  • Q : Distributing the assets back to the partners....
    Accounting Basics :

    After only 6 months, the two realize that they cannot get along and distribute the assets back to the partners. All of the following are TRUE statements, except one. Which statement is FALSE

  • Q : Basis in the accounts receivable....
    Accounting Basics :

    Nicole receives $30,000 cash and accounts receivable with a $50,000 basis and a $52,000 fair market value to the partnership. What gain or loss does Nicole recognize, and what is her basis in the ac

  • Q : Proportionate non-liquidating distribution....
    Accounting Basics :

    Stephanie receives a proportionate nonliquidating distribution from the QRS Partnership. The distribution consists of $60,000 cash and property with an adjusted basis to the partnership of $30,000 a

  • Q : What amount of interest revenue would omega record....
    Accounting Basics :

    Omega Company leased machinery to Suleiman Company on January 1, 2012, for a ten-year period expiring December 31, 2021. Equal annual payments under the lease are $150,000 and are due on July 1 of e

  • Q : Problem regarding creating taxable gain....
    Accounting Basics :

    All of the following distributions could create taxable gain, except one. Which one will NOT create taxable gain upon a distribution?

  • Q : Compute the direct-material price and quantity variances....
    Accounting Basics :

    Compute the direct-material price and quantity variances and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.  

  • Q : Accounts receivable-inventory and partnership interest....
    Accounting Basics :

    She receives a proportionate non-liquidating distribution from the partnership consisting of $10,000 of cash, unrealized accounts receivable (basis of $0, fair market value $30,000), and inventory

  • Q : Edgers outside adjusted basis....
    Accounting Basics :

    How much of the debt is included in Edger's outside Adjusted Basis?

  • Q : Adjusted outside basis after transaction....
    Accounting Basics :

    The partnership made an ordinary cash distribution of $30,000 to Molly, and paid guaranteed payments to partners Molly, Amber, and Pat of $30,000 each ($90,000 total). What is Molly's adjusted outsi

  • Q : Which of the following is true....
    Accounting Basics :

    The City of DeKalb contributes to three pension plans: 1)a Statewide pension plan for nonuniformed personnel, 2. a locally admisinstered plan for police officers, and 3. a locally administered plan

  • Q : Operating asset in the parking lot business....
    Accounting Basics :

    The land has been held by Barry for the past 6 years as an investment. It will be used by AB as an operating asset in its parking lot business. Which of the following statements is correct?

  • Q : How you get the rate....
    Accounting Basics :

    The Ferris Company applies manufacturing overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 3 direct labor-hours are required per unit of produ

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

    Three years after the contribution date, the land contributed by Lexi is sold by the partnership to a third party for $120,000. How much taxable gain will Lexi recognize from the sale?

  • Q : What is the purpose of the adjustment....
    Accounting Basics :

    Prevatt, Inc. owns 80% of Franklin Company. During the current year, a portion of the investment in Franklin is sold. Prior to recording the sale, Prevatt adjusts the carrying value of its investmen

  • Q : Basis in the non-cash property....
    Accounting Basics :

     Immediately before the distribution, Stephanie's adjusted basis for her partnership interest is $80,000. Stephanie's basis in the noncash property received is:

  • Q : Net cost recovery deduction....
    Accounting Basics :

    In May 2013, Preston purchases 5-year MACRS property costing $150,000 and 7-year MACRS property costing $140,000. Preston's income is $100,000. If Preston wishes to maximize his total 2013 cost reco

  • Q : What amount would matsui report in its year-end 2006....
    Accounting Basics :

    Assume that, on 1/1/06, Matsui Co. paid $1,200,000 for its investment in 60,000 shares of Yankee Inc. Further, assume that Yankee has 200,000 total shares of stock issued.

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