• Q : Claim an itemized deduction for the cost....
    Accounting Basics :

    Assume that the tax law allows individuals to claim an itemized deduction for the cost of music lessons for the taxpayer or any member of his family.

  • Q : Market value of brooks inventories....
    Accounting Basics :

    Without prejudice to your answer to (a), assume that the market value of Brooks' inventories is less than cost. Explain how this decline would be presented in Brooks' income statement for the fiscal

  • Q : Change in accounting principle....
    Accounting Basics :

    When a company discontinues an operation and disposes of the discontinued operation (segment), the transaction should be included in the income statement as a gain or loss on disposal reported as

  • Q : Amount accrued for the loss contingency....
    Accounting Basics :

    A company has a loss that meets the requirement of a loss contingency in the amount of $500,000. The company has insurance coverage in the amount of 1,000,000 with a deductible of 250,000. What amou

  • Q : Write a report that defines internal controls....
    Accounting Basics :

    Problem: Write a report that defines internal controls. List specific examples that Done Jones should use in his small business.

  • Q : What is the cost per unit output....
    Accounting Basics :

    Suppose a second shift of eight hours is run for assembly line 1 and the same is done for the final assembly line. In addition, four of the six drilling machines are made operational. The drilling m

  • Q : Liquidating some temporary investments....
    Accounting Basics :

    To have funds to purchase materials, meet payrolls, and so forth, the company will have to liquidate some temporary investments. These investments are presently yielding a return of 6,000 per year.

  • Q : Organizations in the accounting cycles....
    Accounting Basics :

    What is the first step to be performed by most organizations in their accounting cycles?

  • Q : Determine the total estimated uncollectibles....
    Accounting Basics :

    (a) Determine the total estimated uncollectibles. (b) Prepare the adjusting entry at March 31, 2007, to record bad debts expense.

  • Q : Compute q-j book and tax gain on sale....
    Accounting Basics :

    Five years ago, Q&J Inc. transferred land with a $345,000 book and tax basis for a different parcel of land worth $472,000. Q&J included its $127,000 realized gain in book income, but the ex

  • Q : Draft a memo for your employee....
    Accounting Basics :

    You have decided it is time to start looking into purchasing your company's accounting software and have chosen someone in your department to undertake the task. You want to draft a memo for your em

  • Q : Draft a memo for your employee....
    Accounting Basics :

    You have decided it is time to start looking into purchasing your company's accounting software and have chosen someone in your department to undertake the task. You want to draft a memo for your em

  • Q : Loss on the exchange of like-kind property....
    Accounting Basics :

    Problem: A taxpayer who realizes a loss on the exchange of like-kind property can elect to recognize the loss.

  • Q : Covariance between the is and ds returns....
    Accounting Basics :

    Q1. The covariance between the IS and DS returns is:  Q2. The correlation between the returns of IS and DS is

  • Q : Variability percent return of the stock....
    Accounting Basics :

    Kids Toy Co. has had total returns over the past five years of 0%, 7%, -2%, 10%, and 12%. What is the mean and variability percent return of this stock?

  • Q : Expected return on the portfolio and the market....
    Accounting Basics :

    If the risk-less rate is expected to be 3% and the market risk premium is 6%, what is the beta of the portfolio, the expected return on the portfolio and the market?

  • Q : Preparing an incremental analysis for the special order....
    Accounting Basics :

    Instructions: 1) Prepare an incremental analysis for the special order. 2) Should Pro Sports Inc. accept the special order? Explain your answer.

  • Q : Conventional costing system....
    Accounting Basics :

    A company makes two products and uses a conventional costing system in which a single plantwise predetermined overhead rate is computed based on direct labor-hours. Data for the two products for the

  • Q : Residual income for the hum division....
    Accounting Basics :

    A. The residual income for the Hum Division last year was: B. The return on investment last year for the Hum Division was:

  • Q : Traditional single-rate costing system....
    Accounting Basics :

    (1). The predetermined overhead rate under the traditional single-rate costing system is closest to: (2). The overhead cost per unit of Product B under the traditional costing system is closest to:

  • Q : Huffman corporation-change in income....
    Accounting Basics :

    A company recently approached Huffman Corporation about buying 200 units for $850. Huffman currently sells the models to dealers for $1,300. Huffman Corporation's capacity is sufficient to produce t

  • Q : Net operating income or loss....
    Accounting Basics :

    1. What is the present yearly net operating income or loss? 2. What is the present break-even point in units and in Swiss franc sales?

  • Q : Estimate a cost formula for manufacturing overhead....
    Accounting Basics :

    Using the high-low method, estimate a cost formula for manufacturing overhead. Express the variable portion of the formula in terms of a variable rate per unit of product.

  • Q : Find the real sales using cpi factors....
    Accounting Basics :

    a. Using the CPI factors find the "real" sales (in millions) b. What is happening to sales in nominal terms? In real terms?

  • Q : Performing transaction analysis....
    Accounting Basics :

    For each of the events a through e, perform transaction analysis and indicate the account, amount, and direction of the effect (_ for increase and _ for decrease) on the accounting equation. Check t

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