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…
Assume an economy with two firms. Firm A produces wheat and firm B produces bread. In a given year, firm A produces 50,000 bushels of wheat, sells 20,000 bushels to firm B at $3 per bushel, exports 25,000 bushels at…
1. Stride Along has total assets of $385 million. Its total liabilities are $100 million and its equity is $285. Calculate its debt ratio. 2. A company had $9,000,000 in net income for the year. Its net sales were $13,200,000…
A number of years ago, Lee acquired a 20% interest in the BlueSky Partnership for $60,000. The partnership was profitable through 2012, and Lee’s amount at risk in the partnership interest was $120,000 at the beginning of 2013. BlueSky incurred…
During the 2010 tax year, Irma incurred the following expenses: Union dues $275Tax return preparation fee 125Brokerage fees for the purchase of stocks 35Uniform expenses 300If Irma’s adjusted gross income is $22,000, calculate her miscellaneous deductions on Schedule A of…
Dennis is a self-employed hair stylist who operates a salon in his home. The taxes and interest allocated to the business amount to $5,000; maintenance and utilities allocated to the business total $2,100, and depreciation allocated to the business use…
On August 8, 2013, Holly purchased a residential apartment building. The cost basis assigned to the building is $800,000. Holly also owns another residential apartment building that she purchased on June 15, 2013, with a cost basis of $500,000. …
Linda, who is a heard of household with one dependent, had AGI of $150,000 for 2012. She incurred the following expenses and losses during the year:Medical expenses before the 7.5%-of-AGI limitation $20,000State and local income taxes 4,500State sales tax 1,300Real…
