• Q : What is the partnerships and each partners gain....
    Accounting Basics :

    At the beginning of the current year, Bonnie and Clyde formed the BC partnership, with each having a 50% interest. Bonnie transferred property with a $50,000 FMV, a $30,000 adjusted basis and subjec

  • Q : How would the company record a liability for the supplies....
    Accounting Basics :

    A company purchases $23,000 of supplies in the current month and promises to pay for them next month. How would the company record a liability for the supplies?

  • Q : What is lillys basis in her partnership interest....
    Accounting Basics :

    Three years ago, Lilly joined the LCD Partnership by contributing land with a $10,000 basis and $18,000 FMV. On January 15 of the current year, Lilly has a basis in her partnership interest of $20,0

  • Q : Determine the cost of goods sold would be....
    Accounting Basics :

    Post Company began the current month with $10,000 in inventory, then purchased inventory at a cost of $35,000. The inventory at the end of the month was $20,000. The cost of goods sold would be?

  • Q : Explain the units of each product should cane produce....
    Accounting Basics :

    Assume that Cane's customers would buy a maximum of 83,000 units of Alpha and 63,000 units of Beta. Also assume that the company's raw material available for production is limited to 200,000 pounds.

  • Q : Analyse the months performance for april....
    Accounting Basics :

    The Montha Company was incorporated on April 1, 20X1. Montha had 10 holders of common stock. Chenda Month, who was the president and CEO, held 51% of the shares.

  • Q : How to analyze the refunding decision....
    Accounting Basics :

    Dairy Corp. has a $10 million bond obligation outstanding which it is considering refunding. The bonds were issued at 10% and the interest rates on similar bonds have declined to 8%.

  • Q : Calculate the number of shares of common stock....
    Accounting Basics :

    Nelson Company had net income of $30,000. On January 1, the number of shares of common stock outstanding was 9,000. On April 1, the company issued an additional 3,000 shares of common stock.

  • Q : Perform an internet search using the term break-even....
    Accounting Basics :

    Perform an Internet search using the term break-even analysis. Select and read a case study or article from the results of your search.

  • Q : What is the increase or decrease in profits....
    Accounting Basics :

    What is the increase or decrease in profits as a results of purchasing the parts from the outside supplier rather than making them inside the company?

  • Q : Which equipment should axel select and why....
    Accounting Basics :

    Axel needs new equipment. Two companies can provide similar equipment but under different payment plans: Plan A: MRE offerst to let Axel pay 55,000 each year for 5 years. The payments include intere

  • Q : Determine the like-kind exchange treatment....
    Accounting Basics :

    Brett owns investment land located in Tucson, Arizona. He exchanges it for other investment land. In which of the following locations may the other investment land be located and enable Brett to qua

  • Q : What is the ocf for this project....
    Accounting Basics :

    Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.7 million. The fixed asset will be depreciated straight-line to zero over its th

  • Q : What type of pension plan would you recommend....
    Accounting Basics :

    Suppose a firm faces a current tax rate of35% but expects to fall to 20% in the future Employees on average face a current marginal tax rate of 12%pretax but expects the rate to fall to 20%when they

  • Q : What is their recognized gain on the sale of the residence....
    Accounting Basics :

    Eric and Faye, who are married, jointly own a house in which they have resided for the past 17 years. They sell the house for $375,000, with realtor's fees of $10,000. Their adjusted basis for the h

  • Q : Determine the attractive to prospective buyers....
    Accounting Basics :

    During 2012, Ted and Judy, a married couple, decided to sell their residence, which had a basis of $162,000. They had owned and occupied the residence for 11 years.

  • Q : What is the proper classification of the cost of sales....
    Accounting Basics :

    Speed Zone Inc., dealers in automobiles, pays its employees a commission of 5 percent on each sale. What is the proper classification of the cost of sales commissions?

  • Q : How raffies kids should report the mortgage....
    Accounting Basics :

    Raffie's Kids, a non-profit organization that provides aid to victims of domestic violence, lowincome families, and special-needs children has a 30-year, 5% mortgage on the existing building.

  • Q : Explain temporary employees should the manager hire....
    Accounting Basics :

    Assume that the sorting operators are temporary employees. The union contract requires that temporary employees be hired for one month at a time. Each temporary employee is hired to work 160 hours i

  • Q : What is jacks basis in the stock he received....
    Accounting Basics :

    Jack transferred property with an adjusted basis of $45,000 to JKL Corporation. There was a $35,000 mortgage on the property.

  • Q : How much gain did mary recognize as a result....
    Accounting Basics :

    Tom and George form T and G Corporation. Tom transfers machinery worth $100,000 with a basis to Tom of $40,000, while George transfers land worth $90,000 with a basis to George of $20,000 and servic

  • Q : Explain what will be the total amount they must pay....
    Accounting Basics :

    Topper Corporation has 55,000 shares of $1 par value common stock and 32,000 shares of cumulative 5.6%, $100 par preferred stock outstanding. Topper has not paid a dividend for the prior year.

  • Q : What amount will tosco report as an extraordinary loss....
    Accounting Basics :

    During the year 2009, Tosco Corporation suffered an $600,000 loss when its factory was destroyed in a flood. Assuming the corporate income tax rate is 40%, what amount will Tosco report as an extrao

  • Q : Discuss valuation of inventories on an individual item basis....
    Accounting Basics :

    Grant Wood Company manufacturers desks. Most of the company's desks are standard models and are sold on the basis of catalog prices. At December 31,2008, the following finished desks appear in the c

  • Q : Determine the amount of realized gain....
    Accounting Basics :

    For the last nine years, Mr. and Mrs. Orchard live in a residence located on eight acres. In January of the current year they sell the home and two acres of land. The purchaser of the residence does

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