Perez Company, a Mexican subsidiary of a U.S. company, sold equipment costing 200,000 pesos with accumulated depreciation of 75,000 pesos for 140,000 pesos on March 1, 2009. The equipment was purchased on January 1, 2008, when the exchange rate for…
Sascha contributes some common stock that she held long-term to a public charity. On the date of the contribution, Sascha’s basis in the common stock was $12,000 and the fair market value was $5,000. What is the amount of charitable…
Erin’s records reflect the following information: 1. Paid $200 dues to a fraternal organization (such as the Elks Club) 2. Donated stock having a fair market value of $3,500 to a qualified charitable organization. She purchased the stock 2 years…
Elaine contributed some inventory from her sole proprietorship to a public charity for its use. On the date of the contribution, Elaine’s basis in the inventory was $10,000 and the fair market value was $15,000. What is the amount of…
SIMPLEX financial system is characterized by a required reserves ratio of 11 percent; initial excess reserves are $1 million, and there are no currency or other leakages. a.What would be the maximum amount of checkable deposits after deposit expansion, and…
On January 1, 2000, Rye Co. established a stock appreciation rights plan for its executives. They could receive cash at any time during the next four years equal to the difference between the market price of the common stock and…
Cookies Corporation distributed land to its sole shareholder. On the date of distribution, the land had a fair market value of $85,000 and an adjusted basis to Cookies of $42,000. What is the amount of Cookies’ gain on the distribution?…
Kite Company uses the perpetual inventory method. On January 1, 2011, Kite purchased 300 units of inventory that cost $2.00 each. On January 10, 2011, the company purchased an additional 500 units of inventory that cost $3.00 each. If kite…
Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the…
Muscle Construction signs a contract to build a classroom addition for Smallville High School. The total price for the addition is $800,000, and the initial cost estimate was $650,000. The project is expected to take 18 months to complete. The…
