week 3 problem Essay

4. What is the amount that was credited to Group Insurance Premiums Collected (account number 27) during this period?

There were no other items includable in her gross income. What is the amount of her adjusted gross income for 2011?Answer

| Hill City Light & Water (a proprietary fund) contributes to a defined  benefit plan for its employees.  During 1999 Hill City contributed $27 million to its pension plan.   On February 15, 2000,  Hill City made an additional $3 million contribution related to 1999.   The actuarially determined contribution amount was $32 million.   The amount of pension expense recognized by Hill City Light & Water for 1999 should be:Answer

2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.

Couple A and B would be able to use their passive loss of $6,200 to offset their passive income of $44,000. The couple had no prior year losses from passive activities therefore they would report a passive gain of $37,800. With a modified adjusted gross income over $100,000 the couple would file using Form 8582.

Salesman B proposed to lease the golf carts for $500 dollars per cart per year. This was payable at the end of the year for

A. Calculate the amount of income Phillips would report on its 2008 and 2009 financial statements related to its investment in Jones, assuming it accounts for its investment using the Cost Method. Be sure to clearly indicate your answer for each year. (4

Without regard for this investment, Keefe earns $300,000 in net income during 2010.All net income is earned evenly throughout the year.What is the controlling interest in consolidated net income for 2010?

The current statutory tax rate is 30%. Income tax expense for the year ended 31 December 2011 was $169,774. You found out that carrying amounts of the assets and liabilities as at 31 December 2011 are equal to their tax bases except for the following items. These items originate from the same tax jurisdiction. 1. Gross property, plant and equipment is $850,000. Accounting depreciation is $255,000 and tax depreciation is $102,000. 2. Development cost of $300,000 was incurred during the year. It is depreciated over five years for accounting purposes. It is allowed for tax purposes when cash is paid. 3. Interest received in advance $45,000. Interest is taxed on an accrual basis. 4. A long-term loan was secured for $90,000. Interest is charged on 12% per year and is payable at the end of the year. Only cash interest is tax deductible. 5. A provision for restructuring of $40,000 was made in 2011. Restructuring costs are tax deductible when the company incurs the cost. Required (i) Calculate the deferred tax liability (asset) reported by the company as at 31 Dec 2011. Show the carrying amounts and tax bases for the assets or liabilities used in your computation. (15 marks) (ii) You believe that the tax rate will go up to 33% in the near future. You plan to adjust for the higher tax rate in Watts’ 2011 financial statements. Describe four expected

California Best Trucks maintains a debt ratio of 60%. Due it’s bond rating, the company pays an interest of 6.5% on it’s debt. When we multiply the tax rate (adjusted by subtracting one from the marginal rate) by the debt ratio of 60% and then multiply by our interest rate of 6.5%, our

The following includes the accounts of the Perry Company on December 31. What is the total trial balance? Accounts Receivable Cash Equipment Salaries Expense Revenue Earned Rent Expense a. b. c. $11,900 $12,000 $9,100 $1,000 4,500 4,000 1,600 2,800 200 Supplies Expense Drawing Account Advertising Expense Accounts Payable Capital Account 250 300 50 3,050 6,050

6)  On December 1 a company purchased $700 of supplies—approximately a three-month supply. On December 1 the asset Supplies was debited for $700. On December 31 the company needs to prepare a prepayment-type ___________ entry.

(10 points) Chandra has the opportunity to buy a vacant lot next to several commercial properties for $50,000. She plans to buy the property and spend another $60,000

The bank balance was low considering the assorted real estate acquired from Marvin Gardens, Kentucky Avenue, and North Carolina Avenue. Moreover, the properties generated $--- of revenue and a portion of $-- came from rent. Apart from revenue, there were various expenses to cover from the profuse real estate purchased. The luxury tax and rent expense carried an expensive price tag of $--. Even though the expense was quite high, the duo made a net profit of $--, ultimately expanding the capital to $2,067. In comparison to the second and third fiscal period, the bank account decreased only by $---, due to the costly properties. Despite the high costs, the amortization of land had increased by $600 from the previous fiscal period. Overall, the total revenue, net profit, and capital grew a slightly as expenses lugged them down.

Esto es lógico atendiendo a los cortos plazos de cobro de la prestación del servicio y de los importantes volúmenes de terrenos y construcciones que son necesarios para llevar a cabo un proyecto nuevo de este tipo. Además, los terrenos, que son cerca del 50% del total de inmovilizado, no se amortiza, por lo que su valor no se ve depreciado por la amortización con el tiempo.