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…
Hinrich Entertainment distributes a DVD which sell for $12 per unit. Hinrich pays $7 per unit to buy the product. Selling costs of $1 per unit is incurred to deliver the product to the customer. This is paid in cash…
Pirate, Inc. leased equipment from Shoreline Enterprises under a four-year lease requiring equal annual payments of $180,000, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment…
A lease agreement calls for quarterly lease payments of $7,228 over a 10-year lease term, with the first payment at July 1, the lease’s inception. The interest rate is 10%. Both the fair value and the cost of the asset…
Janson Pharmaceuticals incurred the following costs in 2013 related to a new cancer drug: Research for new formulas $ 2,425,000 Development of a new formula 1,600,000 Legal and filing fees for a patent for the new formula 60,000 Total $…
