Cream, Inc's taxable income for the current year before any deduction for an NOL carryforward of $30,000 is $70,000 . Cream's qualified production activities income (QPAI) is $60,000 . What is the amount of Cream's domestic production activities deduction (DPAD) for the current year?
Karen owns a vacation home in Door County, Wisconsin. During the year, she rents it out for two weeks and uses it personally for three weeks. Her expenses directly related to renting out the property were utilities $300 and maid service $150. The portion of taxes allocable to the rental activity is $600 and revenue from the rental is $1,000. Karen will:
Carolina Products Carolina Products sells a unique item with the following information available: Sales price $45 per unit Variable costs $15 per unit Fixed costs $5 per unit Units produced and sold 2,000 Refer to the Carolina Products information above. What is the contribution margin ratio?
Azuki Corporation operates in two sales territories, Urban and Rural. Data concerning last year's operations appear below: Urban Rural Sales$320,000 $80,000 Variable expenses 208,000 56,000 Contribution margin 112,000 24,000 Traceable fixed expenses 48,000 30,000 Segment margin$64,000 $(6,000) Azuki's common fixed expenses were $25,000 last year. If operations in the Rural Sales Territory would have been discontinued at the beginning of last year, how would this have changed the net operating income of Azuki Corporation as a whole?
For a strong internal control system over cash, it is important to have the duties related to cash receipts and cash payments divided among different employees
In December, 2016, Shooger Candy Company began including one coupon in each package of candy and offered customers a Stuffed Shooger Bear in exchange for $5 and five coupons. The stuffed bears cost Shooger $5.30 each. Eventually, it is expected that 40% of the coupons will be redeemed. During December, Shooger sold 280,000 packages of candy and no coupons were redeemed. In its December 31, 2016
Kadeisha is single with no dependents and has a salary of $102,000 for 2019, along with tax exempt interest income of $3,000 from a municipality. Her itemized deductions total $11,600.Required: Compute her taxable income.
The SSC Partnership, a cash-method partnership, has a balance sheet that includes the following assets on December 31 of the current year: Basis FMVCash$180,000 $180,000Accounts receivable-0- 60,000Equipment (cost = $100,000)40,000 50,000Land90,000 120,000Total$310,000 $410,000 Which of SSC's assets are considered hot assets under §751(a)?
Riley, Inc. began the year with Property and Equipment costing $1,020,000 and accumulated depreciation of $180,000. The only change affecting the long-lived assets account during the year is the $82,500 of depreciation expense that must be recorded for the year. What is the amount of Property and Equipment, net, to be reported on the balance sheet at the end of the year?
On October 1, Year 1, Jason Company paid $2100 to lease office space for one year beginning immediately. What is the amount of rent expense that will be reported on the Year 1 income statement and what is the cash outflow for rent that would be reported on the Year 1 statement of cash flows?
The stockholders' equity section of a corporation's balance sheet follows: Preferred stock, $25 par value, 6%, cumulative, 10,000 shares authorized, 5,000 shares issued and outstanding …………..$125,000Common stock, $5 par value, 50,000 shares authorized, 20,000 shares issued and outstanding.…………………….. 100,000Paid-in capital in excess of par value, Common stock ……… 90,000Retained earnings ………………………………………. 95,000Total stockholders' equity ……………………………….$410,000 (1) Assuming that no dividends are in arrears, compute the book values per preferred share and per common share.(2) Assuming that one year of cumulative preferred dividends is in arrears, compute the book value per common share.
Willow Clinic bases its budgets on patient-visits. During October, the clinic plans for a level of activity of 2,100 patient-visits. The clinic has provided the following data concerning the formulas it uses in its budgeting: Fixed elementper monthVariable element per patient-visitRevenue - $38.00 Personnel expenses$23,200 $11.00 Medical supplies$700 $5.90 Occupancy expenses$4,800 $1.70 Administrative expenses$4,100 $0.10 Required:Prepare the clinic's planning budget for October.
Brady owns a second home that he rents to others. During the year, he used the second home for 50 days for personal use and for 100 days for rental use. Brady collected $20,000 of rental receipts during the year. Brady allocated $7,000 of interest expense and property taxes, $10,000 of other expenses, and $4,000 of depreciation expense to the rental use. What is Brady's net income from the property and what type and amount of expenses will he carry forward to next year, if any?
Assuming that there are no other changes to its financials, if Baldwin company's fixed costs are declining but it's contribution margin is constant (remains unchanged), you can conclude that:
The following information relates to Aracely Inc at December 31 . 2014: Fair value of plan assets ............................. $1,520,000 Market related asset value ............................ 1,440,000 Accumulated benefit obligation ........................ 1,960,000 Projected benefit obligation .......................... 2,040,000 Unrecognized prior service cost ....................... 24,000
A primary advantage of using computer-assisted audit techniques (CAATs) packages to audit the financial statements of a client that uses computerized information systems is that the auditor may:
Desi Corporation incurs $5,000 in travel, market surveys, and legal expenses to investigate the feasibility of opening a new coffee house in one of the new suburban malls in town. Desi already owns a similar coffee house downtown.a.What is the proper tax treatment of these expenses if Desi decides not to open the new coffee house?b.What is the proper tax treatment of these expenses if Desi decides to open the new coffee house?c.Assume that Desi Corp is currently in the cleaning services business and incurs the noted expenses because it is considering opening a coffee house. Reconsider your responses to parts a and b.
On April 1, 2017 the Reba Company purchased 10%, $800,000 bonds of the Trading Up Company at par plus accrued interest. These bonds were classified as an investment in trading securities. The bonds pay interest on June 30 and December 31 each year. The entry by Reba on April 1, 2017, would include a
Muscato Corporation estimates that its variable manufacturing overhead is $19.00 per machine-hour and its fixed manufacturing overhead is $1,442,100 per period.If the denominator level of activity is 7,600 machine-hours, the predetermined overhead rate would be:
Amber is in the process this year of renovating the office building (placed in service in 1976) used by her business. Because of current Federal Regulations that require the structure to be accessible to handicapped individuals, she incurs an additional $11,000 for various features, such as ramps and widened doorways, to make her office building more accessible. The $11,000 incurred will produce a disabled access credit of what amount?
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. The machine has no salvage value. What is the accounting rate of return?