• Q : Determine moon unamortized bond discount....
    Accounting Basics :

    Moon uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2004, Moon's unamortized bond discount should be:

  • Q : What is the break-even point in unit sales....
    Accounting Basics :

    Katara Enterprises distributes a single product whose selling price is $36 and whose variable expense is $24 per unit. The company's monthly fixed expense is $12,000. What is the break-even point in

  • Q : What is the ending cash balance....
    Accounting Basics :

    "Myron M. Fox, Rhoda R. Fiori, Cassandra P. Martin and Henrietta Q. Pasquale are equal partners in FFMP, LLP, a small business consulting services firm.

  • Q : Additional paid-in capital increase or decrease....
    Accounting Basics :

    At the date of acquisition, by how much does Riley's additional paid-in capital increase or decrease?

  • Q : What is the recognized gain and adjusted basis....
    Accounting Basics :

    Rita and Todd exchange real estate in a like-kind exchange. Rita's property is subject to a $40,000 mortgage and has a basis of $75,000 (fair market value of $112,000). She receives real estate with

  • Q : Compute the total fixed costs....
    Accounting Basics :

    Assume October is the high volume month for a toy manufacturer and July is the low volume month. The following total production costs and volume levels have been recorded:

  • Q : Mixing-forming departments on the basis of productivities....
    Accounting Basics :

    The pharmaceutical company is considering how to motivate workers to improve their productivity (monthly production). One proposal is to evaluate and compensate workers in the Mixing and Forming Dep

  • Q : What is the desired markup percentage....
    Accounting Basics :

    Rusty Company is considering developing a new product. The company has gathered the following information on this product:

  • Q : Determine the consolidated net income....
    Accounting Basics :

    The parent had a bond payable outstanding on January 1, 2011, with a book value of $212,000. The subsidiary acquired the bond on that date for $199,000. During 2011, Jordan reported interest expense

  • Q : What would be bullet corporation''s percentage markup....
    Accounting Basics :

    The following information is provided by Bullet Corporation for a new product it recently introduced:

  • Q : What is the minimum transfer price....
    Accounting Basics :

    The Molding Division is operating at full capacity. What is the minimum transfer price the Molding Division should accept?

  • Q : What amount of overhead will be assigned....
    Accounting Basics :

    Refer to the above data. If Riverview applies overhead using a predetermined rate based on machine-hours, what amount of overhead will be assigned to a unit of output which requires 0.5 machine hour

  • Q : Determine the short-term capital gains....
    Accounting Basics :

    For the current year, Monica also had $9,000 of short-term capital gains. What amount of loss may Monica use for the current year?

  • Q : What is the minimum transfer price....
    Accounting Basics :

    The Molding Division has available capacity to produce the 15,000 units for the other division. What is the minimum transfer price the Molding Division should accept?

  • Q : What is its markup percentage....
    Accounting Basics :

    HIT Company provides the following cost information related to its production of its primary product:

  • Q : Loan is a non-business bad debt....
    Accounting Basics :

    Nicholas loaned Lyle (a friend) $30,000 in 2004, with the agreement that the loan would be repaid in two years. In 2005, Lyle filed for bankruptcy and Nicholas learned that he could expect to receiv

  • Q : Taxpayer filing a joint return....
    Accounting Basics :

    Kiara, a married taxpayer filing a joint return, had the following items for 2006:

  • Q : How much is the total amount of budgeted....
    Accounting Basics :

    Each hat requires ½ yard of felt and ¼ hour of direct labor. Felt costs  $3.00 per yard and employees of the company are paid $20 per hour. How  much is the total amount of b

  • Q : Income tax return for the current year....
    Accounting Basics :

    The barn was not insured. 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

  • Q : How much is the budgeted manufacturing cost....
    Accounting Basics :

    Orr Corporation's manufacturing costs for August when production was 800  units appears below:

  • Q : Determine carlos deduction with respect to the theft....
    Accounting Basics :

    During the current year, Carlos had securities stolen from his home. Carlos had paid $30,000 for the securities, but they were worth $75,000 at the time of the theft. Carlos had $75,000 of adjusted

  • Q : What is the total amount to be budgeted for manufacturing....
    Accounting Basics :

    Lewis Production has 600  pounds of brick mix in beginning inventory and wants to have 800 pounds of brick mix in ending inventory. What is the total amount to be budgeted for manufacturing ove

  • Q : Determine the total deductions in calculating taxable income....
    Accounting Basics :

    No election is made to use the straight-line method. The company does not make the § 179 election. Determine the total deductions in calculating taxable income related to the machines for 2005.

  • Q : Find out the cost recovery deduction....
    Accounting Basics :

    Grady did not elect to expense any of the asset under § 179, nor did he elect straight-line cost recovery. Grady sold the asset on May 13, 2006. Determine the cost recovery deduction for 2006.

  • Q : How much is the ending inventory of plastic to be reported....
    Accounting Basics :

    On August  31st, 195,000 ounces of plastic were on hand. The cost of plastic is $0.03 per  ounce. How much is the ending inventory of plastic to be reported on the company's balance she

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