calculate income tax for the Rachael Corporation based on the following “book net income” of 1,000,000 includes the following: capital losses $30,000 capital gains $10,000 and federal income tax expense
In 2011 Heart Corporation had year -end assets of $1,200,000 sales of $1,650,000 net income of $140,000, net cash flows from operating activities of $195,000.00 dividends of $60,000, purchases of plant assets of $250,000, and sales of plant asset of…
Calculate the future value of an annual annuity of $5000 beginning today and continuing for 10 years, assuming an earnings rate of 9%.
1. Kim had the following transactions for 2006:Salary: $48,000Damage award (compensatory) for city bus accident: $18,000Loss on sale of stock investment: $5,600Loan from father to purchase auto: $14,000Alimony paid to ex-wife: $8,000What is Kim’s AGI for 2006? 2. John forms…
You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year Beginning of year Price# shares bought or sold2005$50.00 1002006$55.00 502007$51.00 752008$54.00 75 a. What is the geometric…
DNA Corporation issued $4000000 in 10.5 percent, ten year bonds on February 1, 2010, at 104. Semiannual interest payment dates are January 31 and July 31. Use the straight – line method and ignore year-end accruals. 1. With regard to…
Question 1:Breaker Company purchased a new piece of equipment on July 1, 2010 at a cost of $300,000.The equipment has an estimated useful life of 5 years and an estimated residual value of $25,000. The current year end is 12…
Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost/book value/fair value differentials…
Great Falls Brewery’s regular selling price for a case of beer is $15. Variable costs are $8 per case and fixed costs total $2 per case based on production of 250,000 cases. The fixed costs remain unchanged within a relevant…
The Charlotte Bobcats, a professional basketball team, has been offered the opportunity to purchase the contract of an aging superstar basketball player from another team. The general manager of the Bobcats wants to analyze the offer as a capital budgeting…
