A company purchased a rope braiding machine for $307,320. The machine has a useful life of 8 years and a residual value of $17,000. It is estimated that the machine could produce 764,000 units of climbing rope over its useful…
Jasper is a self-employed businessman. On March 5, 2012 he purchases a personal computer for use at his home. He uses the computer for personal purposes 50 percent of the time and for business use the remainder of the time.…
Assume that a US company has a subsidiary in the United Kingdom that earned $100,000 (translated from pounds to dollars) in 1996 at a tax rate of 40 percent. The tax rate in the United States is 34 percent, and…
A corporation issues $500,000, 10%, 5-year bonds on January 1, 2011 for $479,000. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight- line method of amortization of bond discount, the amount of bond…
Assume that a bond is issued with the following characteristics:Date of bonds: January 1, 2005; maturity date: January 1, 2010; face value: $200,000; face interest rate: 10 percent paid semiannually (5 percent per period); market interest rate: 8 percent (4…
Bloomberg Company issed stock for $30,000 cash on January 20, 2010. During 2010, the company recorded revenue on account of $12,000 and expenses on account of $5,500. Bloomberg received $8,200 cash from accounts receivable and paid $4,500 on the accounts…
How is the timing and amount of cash disbursements for purchases and expenses affected by credit terms offered by vendors to you and what are some ways to defer or slow down cash disbursements?
Walter receives cash of $18000 and land with a fair market value of $75 000 adjusted basis of $50 000 in a current distribution. His basis in his partnerships is $16000 a) What is the amount of gain that Walter…
A company issued 9.2%, 10-¬?year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 10%, and the issuer received $95,016 cash for the bonds. On the first semiannual interest…
Jake purchased a $205,000 crane for his construction business. He sold the crane for $150,000 after taking $115,000 of depreciation. Assume Jake is in the 33% tax rate bracket. a.On what form would the gain or loss originally be reported?…
