• Q : How should the home office expenses be treated....
    Accounting Basics :

    Martin has a home office for his business as an agent for rock-and-roll bands The business shows a loss of $2000 before home office expenses. How should the home office expenses be treated?

  • Q : Shares of stock outstanding problem....
    Accounting Basics :

    Tan Corporation (E&P of $700,000) has 1,000 shares of stock outstanding owned by two unrelated individuals, Jacob (600 shares) and Julie (400 shares). Both shareholders paid $75 per share for th

  • Q : How much may they deduct of schedule a for special clothing....
    Accounting Basics :

    She also purchased a pair of standard black shoes to war while on duty that cost $45. How much may they deduct of Schedule A for special clothing and uniforms (before applying the 2% of adjusted gro

  • Q : What amount of the total expenses should be allocated....
    Accounting Basics :

    Peter pays rent for his home of $12000, utilities of $4800, and maintenance expenses of $1200. What amount of the total expenses should be allocated to the home office?

  • Q : What are the tax consequencesas-result of stock redemption....
    Accounting Basics :

    What are the tax consequences to Sheldon and Hawk Corporation as a result of the stock redemption?

  • Q : What amount of income or loss from the boutique....
    Accounting Basics :

    Richard operates a hair styling boutique out of his home. 300 of the 1,200 square feet of floor space are allocated to the boutique. Other information is as follows:

  • Q : What is the amount of nancy''s deduction for business gifts....
    Accounting Basics :

    Nancy owns a small dress store. During 2009, Nancy gives business gifts having the indicated cost to the following individuals:

  • Q : What is the amount of bob''s business gift deduction....
    Accounting Basics :

    During the 2009 holiday season, Bob, a barber, gave business gifts to 34 customers. The values of the gifts, which were not of a promotional nature, were as follows:

  • Q : What amount is reportable as interest income....
    Accounting Basics :

    Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $175 in interest on a savings account at the Moss National Bank and $1,475 in interest on California Mu

  • Q : How much may harry deduct as travel expenses for the trip....
    Accounting Basics :

    How much may Harry deduct as travel expenses for the trip?

  • Q : What is the amount of outstanding checks....
    Accounting Basics :

    What is the amount of outstanding checks at the end of November?

  • Q : What is the average wait time for production....
    Accounting Basics :

    Vases take an average of 15 minutes to manufacture, and the machine that produces the vases has an annual capacity to run 4,000 hours. What is the average wait time for production?

  • Q : What are the tax consequences to sheldon....
    Accounting Basics :

    Sheldon had acquired all of his shares 10 years ago at a cost of $100 per share. What are the tax consequences to Sheldon and Hawk Corporation as a result of the stock redemption?

  • Q : Estimate how much of the $229,145 of overhead cost....
    Accounting Basics :

    Estimate how much of the $229,145 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $229,145 consisted of utilities and supervis

  • Q : Invest today in an account expected....
    Accounting Basics :

    Jane wants to set aside funds to take an around the world cruise in four years. Assuming that Jane has $8,000 to invest today in an account expected to earn 6% per annum, how much will she have to s

  • Q : Adjustment of accruals on long-term contracts....
    Accounting Basics :

    James, Inc. incurred the following infrequent losses during 2012:?A $140,000 write-down of equipment leased to others.?A $80,000 adjustment of accruals on long-term contracts.

  • Q : What is the amount of goodwill....
    Accounting Basics :

    On April 1, 20X1, Paape Company paid $950,000 for all the issued and outstanding stock of Simon Corporation. The recorded assets and liabilities of the Simon Corporation on April 1, 20X1, follow:

  • Q : What is the expected gross margin for stanford corporation....
    Accounting Basics :

    Stanford produces 120,000 units of A, 120,000 units of B and 60,000 units of C. The total costs incurred up to the split-off point are $300,000 What is the expected gross margin for Stanford Corporati

  • Q : What would be the effect on rhone''s overall profits?....
    Accounting Basics :

    If Rhone changes its method of accounting for Erone's sales, assuming that all of Erone's production is sold in the period that it is produced, what would be the effect on Rhone's overa ll profits?

  • Q : What are the budgeted machine hours....
    Accounting Basics :

    XYZ Corp. produced 26,000 units of its only product. Machine hours per unit are 2.8. The budget planned for  23,000 units. What are the budgeted machine hours and the flexible-budget machine ho

  • Q : How much will be allocated to the ending inventory....
    Accounting Basics :

    Wilmington has no Work-in-Process inventory at the end of the period. If the manufacturing overhead-variance is prorated between inventory and cost of goods sold,  how much will be allocated to

  • Q : What will be the result of this error....
    Accounting Basics :

    Oak Bluff Company incorrectly assigns a $50,000 overhead item to selling expense. Borden has  more inventory at the end of the year than at the beginning of the year. what will be the result of

  • Q : What is the cumulative average time per unit....
    Accounting Basics :

    A particular manufacturing job is subject to an estimated 90% learning curve. The first unit required  40 labor hours to complete. What is the cumulative average time per unit after four units

  • Q : What is the target price per unit....
    Accounting Basics :

    Abrams Corporation sells a product for $75 per unit. Its market share is 20 percent. The market share can be increased to 30 percent with a reduction in price to $63. The product is currently earni

  • Q : What is tw''s margin safety....
    Accounting Basics :

    TwoWheels (TW) manufactures hi-tech bicycles that sell for $600 each. They sell 1,000 bicycles  per year. Fixed higher-level costs amount to $100,000. Break-even for TW is 300 bicycles.  w

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