chapter 13 problems solutions - 60,000 bonus from sept 1 to...

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Chapter 13 Problems 29, 30, 31, 32, 37, 38, 39, 44, 48, 58, 61 29) The partnership should use the fiscal year ending on Sept 30 Because the majority interest of 68% is owned by the corporation, so the other partners will have to use the same tax year 30) If that model year change justifies that the change is a legitimate business purpose and it is approved by the IRS, then they may adopt a fiscal year. 31) a) Calendar year or fiscal year is available b) the calendar year is the only option c) calendar year d) calendar year 32) taxable income annualized 80000 tax on annualized income 15,450 tax for short period 7725 37) salary before bonus
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Unformatted text preview: 60,000 bonus from sept 1 to dec 31 30000 total income for 2011 90,000 38) a) cash or accrual b)accrual c) accrual d) accrual for sales of inventory cash or accrual for service e)cash or accrual f) cash or accrual 39) a, b, , e, 44) Jan 1 2011 20 $400 sold 200 $700 purchase 190 420 FIFO LIFO Sales $140,000 $140,000 Beg invent $8,000 $8,000 purchases 79800 79800 COG for sale $87,800 $87,800 Ending invent FIFO(10*420) 4200 LIFO( 10*400) 4000 COGS $83,600 $83,800 Gross profit $56,400 $56,200 48) LIFO because it produces a smaller taxable income when prices are rising 58) c 61) d...
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