• Q : What is carolyn''s basis in the stock....
    Accounting Basics :

    Carolyn transfers property with an adjusted basis of $50,000 and a FMV of $60,000 in exchange for Prime Corporation stock in a Sec. 351 transaction. what is Carolyn's basis in the stock ?

  • Q : Operating activities by the indirect method....
    Accounting Basics :

    During the year the company's accounts receivable increased by $ 50,000, inventory decreased by $ 23,000, accounts payable decreased by $ 55,000, and accrued expenses payable increased by $ 14,000.

  • Q : Operating activities by the direct method....
    Accounting Basics :

    During the same year, cash was paid out to purchase inventory for $ 335,000, to employees for $ 230,000, and for the purchase of plant assets of $ 190,000. Calculate the amount of cash provided by o

  • Q : What is the net cost of the goods within the discount period....
    Accounting Basics :

    Davies Company purchased merchandise inventory with an invoice price of $5,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Davies Company pays within the discount period?

  • Q : What would be the markup percentage on variable cost....
    Accounting Basics :

    If the target profit is $60,000 for a volume of 480 units, fixed costs are $168,000, and the variable cost per unit is $450, then what would be the markup percentage on variable cost ?

  • Q : Recognize realized gross proft....
    Accounting Basics :

    In 2013 Lake also repossessed $200,000 of jet skis that were sold in 2011. Those jet skis had a fair value of $75,000 at the time they were repossessed .  In 2010, Lake would recognize realize

  • Q : What price will the company charge....
    Accounting Basics :

    Variable selling and administrative cost 60; Allocated fixed selling and administrative cost 75. What price will the company charge if the firm uses cost-plus pricing based on absorption cost and a

  • Q : Provisions regarding the division of net income....
    Accounting Basics :

    Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income:

  • Q : What price will the company charge....
    Accounting Basics :

    What price will the company charge if the firm uses cost-plus pricing based on total cost and a markup percentage of 60%?

  • Q : Compton and danson share in the division of income....
    Accounting Basics :

    Compton and Danson form a partnership in which Compton contributes $50,000 in assets and agrees to devote half time to the partnership. Danson contributed $40,000 in assets and agrees to devote full

  • Q : Accounts receivable for the new partnership....
    Accounting Basics :

    Of this amount, $1,150 is completely worthless. For the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $750. The amount debited to Accou

  • Q : Determine the dividends per share for preferred....
    Accounting Basics :

    You have estimated Income for Yr 1, 2, and 3 and determined that the following amounts could be distributed as dividends:

  • Q : How much will brooks actually receive in cash....
    Accounting Basics :

    Brooks can borrow $500,000 by issuing 5%, 10-year bonds at a price of 96. How much will Brooks actually receive in cash under this arrangement?

  • Q : What is total''s basis in the property received....
    Accounting Basics :

    Incorporating a Sole Proprietorship. Tom incorporates his sole proprietorship as Total Corporation and transfers its assets to Total in exchange for all 100 shares of Total stock and four $10,000 i

  • Q : How much cash will farley receive during november....
    Accounting Basics :

    Budgeted Sales: September $ 240,000; October $310,000; November $290,000; December $360,000; and January $200,000.

  • Q : Fixed general and administrative expenses....
    Accounting Basics :

    If the selling price is increased to $14 per unit and fixed general and administrative expenses are cut by $33,465, what will the new breakeven point be in units?

  • Q : What are pace''s taxable income....
    Accounting Basics :

    What are Pace's taxable income and income tax liability, assuming qualified production activities income is $55,000?

  • Q : Accounts receivable before allowance for doubtful accounts....
    Accounting Basics :

    During 2010, the company had charges to bad debt expense of $90,000 and wrote off, as uncollectible, accounts receivable of $40,000. What should the company report on its balance sheet at December 3

  • Q : What is omega''s charitable contributions deduction....
    Accounting Basics :

    What is Omega's charitable contributions deduction for the current year and its charitable contributions carryover to next year, if any?

  • Q : Effects of various inventory-costing methods....
    Accounting Basics :

    The management of Hoyt Corp. is considering the effects of various inventory-costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inve

  • Q : Determine amount of cash provided by investing activities....
    Accounting Basics :

    The company also purchased treasury stock for $ 78,000 and sold a new issue of common stock for $ 523,000. Determine the amount of cash provided by or used for investing activities for the year.

  • Q : What is total''s basis in the property received from tom....
    Accounting Basics :

    Incorporating a Sole Proprietorship. Tom incorporates his sole proprietorship as Total Corporation and transfers its assets to Total in exchange for all 100 shares of Total stock and four $10,000 i

  • Q : How transaction affect the investment in veritable account....
    Accounting Basics :

    The Investment in Veritable account has a balance of $588,000, corresponding to the subsidiary's unamortized acquisition-date fair value of $49 per share. Veritable issues 3,000 new shares to the pu

  • Q : What is the amount of ed''s recognized gain or loss....
    Accounting Basics :

    Transfer of Property and Services to a Controlled Corporation. In 2010, Ed, Fran, and George form Jet Corporation. Ed contributes land having a $35,000 FMV purchased as an investment in 2006 for $15

  • Q : Belotti would record depletion....
    Accounting Basics :

    During 2009, Belotti loaded and sold 4,000 tons of rock and estimated that 16,000 tons remained at December 31, 2009. During 2010, Belotti loaded and sold 8,000 tons, but estimated at December 31, 2

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