Chapter 13 (8)
Pedro, age 57, is the sole owner of his principal residence, which he has owned and occupied for 10
years. Maria, his spouse, has also lived there 10 years. He sells the house for a realized gain of
a. Can Pedro use th
27. Falcon, Inc. paid salaries of $500,000 to its employees during its first year of operations. At the end
of the year, Falcon had unpaid salaries of $45,000.
a. Calculate the salary deduction if Falcon is a cash basis taxpayer.
Research and Discussion case 17-39
Your firm audits Metropolitan Power Supply (MPS). The issue under consideration is the treatment of
the company's financial statements of $700 million in capitalized construction costs relating to Eagle
Research and Discussion case 16-49
Marshall and Wyatt, CPAs, has been the independent auditor of Interstate Land Development
Corporation for several years. During these years, Interstate prepared and filed its own annual income
Objective Questions 18-32
a. In an integrated audit, which of the following must the auditors communicate to the audit
1. Known material weakness -Yes / Known Significant Deficiencies Yes The PCAOB standard
no 2 requires that the
Ex 15-24 1c and #2, 3
Allocation of common costs
Barbara Richardson, a self employed consultant near Sacramento, received an invitation to visit a
prospective client in Baltimore. A few days later, she received an invitation to make a presentation to a
Prob 16-30 1a and 2 only
Doughty Sawmill, INC., (DSI) purchases logs from independent timber contractors and processes the logs
into three types of lumber products:
Studs for residential buildings (walls, ceilings)
Decorative pieces (fireplace mantels,
Ex 22-24 #2 only
Multinational transfer pricing, goal congruence.
Suppose that the U.S. division could sell as many broadband routers as it makes at $450 per unit in the
U.S. market, net of all marketing and distribution costs.
2. Suppose division manager
Balanced scorecard. Following is a random-order isting of perspectives, strategic objectives, and
performance measure for the balanced scorecard. For each perspective, select those strategic objectives
from the list that best relate to it. For
The Russell Company has an extensive job - costing facility that uses a variety of metals. Consider each
1. Job 372 uses a particular metal alloy that is not used for any other job. Assume that scrap is material
The income of a partnership is $100,000. One partner is to get, when income is allocated among the
partners, a bonus computed as 10 percent of partnership income over $80,000 and after deducting the
bonus. The bonus allocation of income will be
Perry, Inc. owns a 90% interest in Brown Corp. During 20X6, Brown sold $100,000 in
merchandise to Perry at a 30% gross profit. Ten percent of the goods are unsold by Perry at year
end. The noncontrolling interest will receive what gross profit as a result
Braddock v. Braddock
1. What did the majority conclude on the issue before the court in this case? What reasoning supported
The majority concluded that the defendants motion to dismiss the complaint is denied. Since the two
are cousins, J
A parent company paid $500,000 for 100% of the stock of a subsidiary. At the end of the first year the
sub reported net income of $40,000 and paid $5,000 in dividends. The price paid reflected understated
equipment of $70,000 which will be depreciated ove
The balance sheet of ABC includes assets of $300,000 and liabilities of $70,000. The appraised value of
the assets reported on the balance sheet on December 31, 20X9 is $350,000. In addition, a customer list
with a value of $20,000 was noted (the intangib
First Bank v. Fischer & Frichtel, Inc.
1. What was the majoritys decision? What were the reasons for its decision?
The majoritys decision was that Fischer & Frichtel, Inc. owed a deficiency of $215,875 to First
Bank because the foreclosure property had a
When one member of a consolidated group purchases only part of the outstanding bonds of another
member of the group (for example, 80% of the bonds),
a. all bonds, and all the interest expense and interest revenue applicable to the bonds should be
On June 30, 20X1, Naeder Corporation purchased for cash at $10 per share all 100,000 shares of the
outstanding common stock of the Tedd Company. The total fair value of all identifiable net assets of Tedd
was $1,400,000. The only noncurrent asset is prope
Department of the Treasury - Internal Revenue Service
1040 U.S. Individual Income Tax Return 2015
For the year Jan. 1-Dec. 31, 2015, or other tax year beginning
Your first name and initial
OMB No. 1545-0074
, 2015, ending
IRS Use Only-Do not wri
What is the taxpayers gross income in each of the following situations?
a. Darrin received a salary of $50,000 in 2016 from his employer, Green construction.
Gross income is $50,000
b. In July 2016, Green gave Darrin an all-expense-paid trip to Las Ve
AC 321 Chapter Two Homework
1. Stone Company, maker of computers, incurred the following costs during the year:
Required: Classify each cost as either fixed or variable cost.
Salary of the factory supervisor
ABC plans to sell 10,000 electronic devices at $60 each in the coming year. Unit variable cost is $35 and
total fixed cost equals $80,000.
A.) Calculate the break-even in ballet shoes.
B.) Calculate the break-even in sales dollars.
Cost Accounting Chapter 5 Homework
ABC Company produces dvd players. One of its plants produces two versions of dvd players: a basic model
and a premium model. At the beginning of the year, the following data were prepared for the plant: