Wilson has a 40% interest in the assets and income of the CC&W Partnership, and the basis of his partnership interest is $45,000 at the beginning of 2011. During 2011, the partnership’s net loss is $60,000 and wilson’s share of…
Last year Gator Getters, Inc. had $50 million in total assets. Management desires to increase its plant and equipment during the coming year by $12 million. The company plans to finance 40% of the expansion with debt and the remaining…
Richard operates a hair styling boutique out of his home. 400 of the 2000 square feet of floor space are allocated to the boutique. Other information is as follows: Gross income from the boutique$10,000Supplies for the boutique2,000Depreciation on total residence12,000Utilities…
A C corporation acquired a machine for $100,000 and placed it in service on August 15, 2007. The corporation elected S corporation status at the beginning of 2011. On February 13, 2012, the property was sold for $40,000, payable in…
Operating income/(loss) and tax rates for Lombard Corporation for 2012 through 2015 were as follows: 2012: $150,000, 30%; 2013: $250,000, 35%; 2014: ($500,000), 35%; 2015: $700,000, 40%. Assuming that Lombard opts to carryback its 2014 NOL, what is the amount…
In the month of May, Lopat Company Inc. wrote checks in the amount of $37,000. In June, checks in the amount of $50,632 were written. In May, $33,872 of these checks were presented to the bank for payment, and $43,532…
In early 2013, Yuliet received a gift of a home valued at $300,000 (from Yuliet’s Uncle, Marcus). Marcus also gave Yuliet a $25,000 cash gift. During 2013, Yuliet rented the home to Anne-Emilie. As a result of the lease with…
Overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual overhead was $415,000, actual labor hours were 21,000. The amount of overhead applied to production would be: a) $400,000 b) $415,000 c) $420,000 d)…
For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $450,000 of factory labor costs are incurred of which $120,000 is indirect labor. Actual overhead incurred was $240,000. The amount of overhead debited to…
Apple Dumpling, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the plan for the year 2013. Service cost $280,000Contributions to the plan $270,000Actual return on plan assets $260,000Projected benefit obligation (beginning of year) $2,900,000Fair…
