CHAPTER 3. Job-Order Costing
Absorption costing: A costing method that includes all
manufacturing costsdirect materials, direct labor, and both
variable and fixed manufacturing overheadin unit product costs.
Allocation base: A measure of activit
Demonstration Problem 7-1 - Accounting for Bad Debts
The Solo Company was started on January 1, 2015. The following events occurred during 2015
1. Provided $4,000 of services on account.
2. Collected $3,000 cash from accounts receivable.
ACCY 171 Spring 2017
Chapter 5 Homework
Unless otherwise indicated, all taxpayers are calendar-year, cash-method taxpayers.
1. On December 15, 2016, Jacks Tax Prep, a cash-method taxpayer, prepaid $5,000 worth of deductible
interest on a business loan. Th
HW # 1
Objective: To review basic statistical concepts and reinforce the foundation for topics to follow
in the semester. The emphasis is on intuitive reasoning and not theoretical facts.
Directions: This assignment will not be collected. It
I am agreeing to abide by the University Honor Code. I understand that cheating is
unethical. Therefore, I will not cheat, or use the work of others, including copy and paste
sources on the internet as my own f
Under 721, neither the partnership nor the partners recognizes any gain on formation
of the entity.
Emma will take a cash basis of $100,000 in her partnership interest.
Laine will take a substituted basis of $40,000 i
Chapter 11 Review
1. Instead of going to the office first, the taxpayer goes directly to the client's location. It is 20
miles roundtrip to her office and 25 miles roundtrip to the client. Twenty-five miles are
deductible as transportation expense.
Chapter 8 review
1. A security that is a capital asset becomes worthless. The loss is deemed to have occurred on
the last day of the tax year that the security becomes worthless.
2. Herald is in the business of song writing. He writes jin
1. Section 721 provides that, in general, gain but not loss is recognized by the partnership or the partner on
contribution of appreciated or depreciated property to a partnership in exchange for an interest in the partnership.
It appears that Avas meals are not provided for the convenience of the employer, but rather
as a convenience for the employee. Thus, this is a taxable fringe benefit. Therefore, Ava is
required to include in gross income the difference betwe
Chapter 10 review
1. Edna had an accident while competing in a rodeo. She sustained facial injuries that required
cosmetic surgery. While having the surgery done to restore her appearance, she had
additional surgery done to reshape her chin, which was not
1. Tourmaline Corporation, a calendar year C corporation, has taxable income of $1.3 million and $3
million for 2014 and 2015, respectively. The minimum 2015 estimated tax installment payments for
a. April 15, 2015, $110,500; Ju
Peyton is required to include $60,000 in gross income, the value of the automobile.
The award does not satisfy the right type of achievement requirement to qualify for
exclusion from gross income. In addition, the provision that requires
Statement of Cash Flows
Prime Sports Gear, Inc.
Work Sheet for Statement of Cash Flows
For Year Ended December 31, 2013
Year Ended 12/31/2013
1. Choose the correct statement about the corridor (minimum) amortization
method for pensions as applied in 20x6.
a. it is applied to PSC
b. it is a required method
c. it uses 12/31/x6 PBO and plan asset amounts to compute the amount
amortized in 20x6
1. Ending deferred tax liability and asset balances are based on:
*a. future year reversing temporary differences
b. current year originating temporary differences
c. current year reversing temporary differences
d. current year permanent differences
1. Which party owns the asset under lease during the lease term?
c. both lessor and lessee
d. neither lessor nor lessee
1. What type of account is unearned interest in a capital lease?
*a. contra asset
d. contra li