• Q : Credit to gain on sale of debt investments....
    Accounting Basics :

    Tolan Co. purchased 60, 6% Irick Company bonds for $60,000 cash plus brokerage fees of $600. Interest is payable semiannually on July 1 and January 1. If 30 of the securities are sold on July 1 for

  • Q : Prepare in good form a multiple-step income statement....
    Accounting Basics :

    Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Show EPS computations as well.

  • Q : Partnership interest after the contribution....
    Accounting Basics :

    Mr. Lily contributes cash of $5,000 in exchange for his 50 percent interest. What amount of gain must Mr. Williams recognize? What is the basis of his partnership interest after the contribution?

  • Q : Entries for zero-interest-bearing note....
    Accounting Basics :

    On December 31, 2010, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2014.

  • Q : Access to the accounting program....
    Accounting Basics :

    Jonathan looks around the office and cannot find the company checkbook or ledger. Only one other person has access to the accounting program. Jonathan calls you to investigate. How would you proceed

  • Q : Calculate the credit for child and dependent care expenses....
    Accounting Basics :

    Dabney and Nancy are married, both gainfully employed, and have two children who are three and six years old. Dabney's salary is $35,000 while Nancy's salary is $40,000. During the year, they spend

  • Q : Should margaret participate in the qualified tuition program....
    Accounting Basics :

    Her son will be in the 15% marginal tax bracket in all relevant years. Given these assumptions, should Margaret participate in the qualified tuition program?

  • Q : Compute steve''s allowable general business credit....
    Accounting Basics :

    Steve has a tentative general business credit of $85,000 for the current year. His net regular tax liability before the general business credit is $95,000, and his tentative minimum tax is $90,000.

  • Q : Solaris incurs additional costs....
    Accounting Basics :

    Without the buildings and improvement, the tract of land is valued at $1,866,820. Solaris also incurs the following additional costs:

  • Q : Determine the adjustment to income due to the change....
    Accounting Basics :

    The accounts receivable, inventory, and accounts payable balance per books were zero. Determine the adjustment to income due to the change in accounting method and the amount that is allocated to 20

  • Q : Financial capital maintenance concept....
    Accounting Basics :

    On December 31, 2010, the net assets of Marino Manufacturing amounted to $40,000. Net income calculated by using the financial capital maintenance concept amounted to $12,000. During the year, addit

  • Q : What is the total amount of the credit that chris may claim....
    Accounting Basics :

    Chris spends $800,000 to build a qualified low-income housing project, which is placed in service on January 1, 2005. He financed the project using his personal funds. What is the amount of the low

  • Q : What is her holding period for the land....
    Accounting Basics :

    The executor elects the alternate valuation date. Faith has nine brothers and sisters and each inherited a one-tenth interest.

  • Q : What are the income tax consequences to each party....
    Accounting Basics :

    .Victor sold his personal residence to Colleen and paid real estate taxes of $9,450 for the year, $3,250 of which was apportioned to Colleen based on the period she owned the property during the yea

  • Q : Calculate the equivalent units of production for the year....
    Accounting Basics :

    The following data is available for Osman Corp. for the current year: Beginning inventory of goods in process 12,000 units, 60% completed. Ending inventory of goods in process 18,000 units, 30% comp

  • Q : Calculate the weighted average shares outstanding....
    Accounting Basics :

    Assume the items in a. through c. above have already been adjusted for the stock split. NOTE: Carry out your answer to 4 decimal places.

  • Q : Calculate the dividends to be received....
    Accounting Basics :

    The board of directors of Dragonfly declared $600,000 in dividends toward the end of the year. There were 2 years of dividends in arrears on the preferred stock. Calculate the dividends to be receiv

  • Q : How long has the company owned this asset....
    Accounting Basics :

    A depreciable asset currently has a $40,100 book value. The company owning the asset uses straight-line depreciation. They paid $70,000 for this asset and consider it to have a $1,000 salvage value

  • Q : Loss to be reported on joint return....
    Accounting Basics :

    Her loss on Ballpoint Pen Corporation stock was $120,000 and her loss on Pencils Corporation stock was $20,000. Both losses qualify under Code Sec. 1244. Vera files jointly with her husband. What is

  • Q : How should hubert allocate the $975,000 purchase....
    Accounting Basics :

    Hubert and Fran agree to assign $125,000 to a five-year covenant not to compete. How should Hubert allocate the $975,000 purchase price to the assets?

  • Q : Largest deduction claim for organizational expenditure....
    Accounting Basics :

    What is the largest deduction it can claim this year for organizational expenditures?

  • Q : Determine walter''s agi....
    Accounting Basics :

    Based on the information given above, determine Walter's AGI. Be sure to show your work.

  • Q : What is the amount of the low-income housing credit....
    Accounting Basics :

    What is the amount of the low-income housing credit that Chris may claim in 2005 (assuming a rate of 7.96%)? What is the total amount of the credit that Chris may claim as a result of the $800,000 e

  • Q : Transferred property with an adjusted basis....
    Accounting Basics :

    In 2008, Larry transferred property with an adjusted basis of $20,000 and a fair market value of $15,000 to a corporation in exchange for stock. Code Sec. 351 applies to the transfer and the stock q

  • Q : Determine the amount of loss he can deduct....
    Accounting Basics :

    If Sanford has adjusted gross income for the year of $100,000 (before considering the $90,000 loss), determine the amount of loss he can deduct on his income tax return for the current year.

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