Stella Clay, Inc. purchased a manufacturing plant for $1 million and made $500,000 in improvements. A few years later it constructed a child care facility in the plant for $200,000 and took an employer-provided child care credit with respect to…
The partnership agreement of Nieto, Keller, and Pickert provides for the following income ratio: (a) Nieto, the managing partner, receives a salary allowance of $36,000, (b) each partner receives 15% interest on average capital investment, and (c) remaining net income…
Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $900…
Cuff Caterers quotes a price of $60 per person for a dinner party. This price includes the 6% sales tax andthe 15% service charge. Sales tax is computed on the food plus the service charge. The service charge is computed…
1) Are we doing adequate to “Americanize” children and immigrants to America? Given that the political socialization is the key to sustaining significant political virtues and attitudes, should we be doing more to reinforce traditional American political values? Do you…
Dove, Inc., a calendar-year corporation, reported the following operating income (loss) before income tax for its first three years of operations: 2011 $80,000; 2012 $(280,000); 2013 $400,000. There are no permanent or temporary differences between operating income (loss) for financial…
The United States has the strictest product liability laws in the world today. Why do you think many other countries, particularly developing countries, are more lax with respect to holding manufacturers liable for product defects? Could it be that America’s…
Duncan Brooks Co. needs to borrow $500,000 to open new stores. Brooks can borrow $500,000 by issuing 5%, 10 year bonds at a price of 96. How much will brooks actually be borrowing under this arrangement? How much must brooks…
Beat, Inc., expects to sell 60,000 athletic uniforms for $80 each in 2012. Direct materials costs are $20, direct manufacturing labor is $8, and manufacturing overhead is $6 for each uniform. The following inventory levels apply to 2011: Beginning inventory…
Stangle Company manufactures ties. When 28,000 ties are produced, the costs per unit are: Direct materials $0.60Direct manufacturing labor 3.00Variable manufacturing overhead 1.20Fixed manufacturing overhead 1.60Variable selling 0.80Fixed selling 1.13 The ties normally sell for $22 each. The company has…
