Anglen Co. manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce 18,000 trophies each month; current monthly production is 14,400 trophies. The company normally charges $103 per trophy. Cost data for the current level of production are shown below:Variable costs: Direct materials$460,800 Direct labor$316,800 Selling and administrative$ 15,840Fixed costs: Manufacturing$404,640 Selling and administrative$ 74,880The company has just received a special one-time order for 900 trophies at $48 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs. Assume that direct labor is a variable
Brooke and John formed a partnership. Brooke received a 40% interest in partnership capital and profits in exchange for contributing land (basis of $30,000 and fair market value of $120,000). John received a 60% interest in partnership capital and profits in exchange for contributing $180,000 of cash. Three years after the contribution date, the land contributed by Brooke is sold by the partnership to a third party for $150,000. How much taxable gain will Brooke recognize from the sale?
[APPENDIX] Debbie and Alex formed a new partnership. The partnership agreement specified that income should be allocated in a 2-to-1 ratio, with Debbie receiving the larger portion. If revenue for the first year was $90,000 and expenses were $60,000, how much would be allocated to each partner?
During the month of March, Harley's Computer Services made purchases on account totaling $43,500. Also during the month of March, Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?
If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in theoperating activities section of the statement of cash flows (prepared by the indirect method)
When a partnership is liquidated, the assets are sold, the liabilities are paid, and any remaining cash and/or other assets are distributed to the partners
Determine the account and amount to be debited and the account and amount to be credited for the following adjustment on December 31, 2019. On October 1, 2019, the firm paid a premium of $5,600 in cash for a 1-year insurance policy.
During 2021, a company sells 20 units of inventory. The company has the following inventory purchase transactions for 2021:DateTransactionNumber of UnitsUnit CostTotal CostJan. 1Beginning inventory15$60$900Sep. 8Purchase1062 62025$1,520Calculate ending inventory and cost of goods sold for 2021 assuming the company uses LIFO.
Napoli Industries had net income for Year 2 of $1,640,000. Napoli had an average number of shares outstanding at the end of the year of 820,000 shares. On January 1, Year 2, the market price of Napoli's stock was $84 per share. On December 31, Year 2, the market price was $87 per share. What is the price-earnings ratio for Napoli at the end of Year 2?
First Bank has agreed to loan Teresa $10,000 for use in her cosmetics business. If Teresa sells the business to Melissa before the loan is disbursed, Theresa can assign her rights to the loan to Melissa.
Bonilla Inc. has a $700,000 investment opportunity with the following characteristics: Sales$2,240,000 Contribution margin ratio 40% of salesFixed expenses$739,200 The turnover for the investment opportunity is closest to:
Consider the following table of Actual earnings: Firm A Firm B Firm CActual earnings$6,000 $14,000 $18,000 r 10% 8% 12%BVt-1$100,000 $150,000 $190,000 What are the abnormal earnings for Firm C?
Jason sells stock with an adjusted basis of $66,000 to JJ Inc., his 60% owned corporation, for its fair market value of $60,000. JJ Inc. sells the stock three years later for $67,000. JJ Inc.'s recognized gain or loss on the sale will be
An involuntary conversion results from the destruction (complete or partial), theft, seizure, requisition or condemnation, or the sale or exchange under threat or imminence of requisition or condemnation of the taxpayer's property.
A company reported the following asset and liability balances at the end of 2018 and 2019: 20182019Total Assets$5,800,000$6,600,000Total Liabilities3,200,0003,600,000During 2019, cash dividends of $90,000 were declared and paid, and common stock was issued for $90,000. What was the amount of net income for 2019?
Coyote Company reacquired 25,000 shares of its common stock for $15 per share on June 1. On July 1 they sold 10,000 shares for $20 per share. On August 1 they sold 5,000 shares for $12 per share. Prepare the necessary journal entries (omit explanations)
On September 1, of the current year, Samuel, a cash-basis taxpayer, sells his cottage to Edward, also a cash-basis taxpayer for $100,000. Samuel's basis in the cottage is $65,000. The real property tax year is the calendar year. Real estate taxes on the property for the year are $3,650 and are payable on April 1 of the following year. The sales agreement does not provide for apportionment of real estate taxes between the buyer and seller. Assume Samuel pays all of the real estate taxes prior to the sale. The effects of this sales structure will be
Grace has AGI of $60,000 in 2018 and 2019. She makes cash contributions to public charities of $40,000 in 2018 and $37,000 in 2019. Grace's charitable contribution carryover to 2020 is
Sipho Corporation manufactures a single product. Last year, the company's variable costing net operating income was $90,900. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900. What was the absorption costing net operating income last year?
On March 1, Bartholomew Company purchased a new stamping machine with a list price of $34,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $550; sales tax paid, $1,360; installation costs, $450; routine maintenance during the first month of operation, $500. What is the cost of the machine?
A contract to provide lawn and landscaping service for "the next six (6) months" falls within the scope of the statute of frauds, and must be in writing to be enforceable.
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