During the current year, Jimmy incorporates his data processing business. Jimmy is the sole shareholder. The following assets are transferred to the corporation:
Q: Here are some items that appear on an income statement. Operating 650 Income tax expense expenses…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Equipment was acquired at the beginning of the year at a cost of $76,920. The equipment was…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: Prepare Journal entries for each of the seven transactions posted to the following T-accounts.…
A: Journal entries recording is the first step of accounting cycle process, under which atleast one…
Q: The following information pertains to Diane Company. Assume that all balance sheet amounts represent…
A: Introduction:- Return on total assets indicates earnings before interest and taxes relative to its…
Q: The background on a company, Its Industry, and the economy is usually Included in which section of a…
A: A combination of summaries of an organization's financial results, financial status, and cash flows…
Q: As part of your audit of receivables of Jasmin Corporation, you performed a cut-off test of sales.…
A:
Q: Question 14 The opening provision for doubtful debts was £2600 and the closing provision for…
A: Provision for bad and doubtful debts is created based on the estimated amount which may not be…
Q: What does the inventory turnover period ratio measure? Select one: a.Profitability. b.The average…
A: INVENTORY TURNOVER PERIOD RATIO IS A FINANCIAL RATIO SHOWING HOW MANY TIMES AN ORGANISATION HAS SOLD…
Q: Which of the following items is typically not included as a separate Item after normal revenues and…
A: Depreciation expense is the reduction of assets due to normal wear and tear, passage of time , etc.
Q: Sand Inc., a company that produces and sells a single product, has provided its contribution format…
A: Introduction: Contribution margin: Deduction of variable costs from sales value derives the…
Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of…
A: Introduction: An income statement is a critical financial record for every company. It illustrates…
Q: Funnel Manufacturing Company has provided the follwoing information: Month Budgeted Sales January $…
A: Accounts payable is one of the current liability of the business. It means amount to be paid to…
Q: Taylor Company has the following balances at the end of the current year: Total Assets $490,000…
A: Formulas: Debt to equity ratio = Total liabilities / Equity where, Equity = Total Assets - Total…
Q: Based on the following data, what is the accounts receivable turnover? Sales on account during year…
A: Accounts receivable turnover is the ratio of average accounts receivable divided by net credit sales…
Q: Martinez Co. borrowed $71,059 on March 1 of the current year by signing a 60-day, 5%, interest-…
A: Given: - Amount borrowed= $71,059 Rate of interest=5% or 0.05 Days of note=60 days Days in a year=…
Q: Bank overdraft 100,000 Accounts receivable 900,000 Allowance for doubtful accounts 40,000 Raw…
A: The statement of comprehensive income details the revenue, income, costs, or loss of the company…
Q: Industry standards for financial statement analysis: Multiple Choice Are used to compare a company's…
A: There are four comparisons of standards of financial statements, competitors, intra-company…
Q: asset nabllity year End Beginning Cash $ 62,000 $73,000 Accounts receivable (net) 75,000 60,000…
A: Cash flow from operating activities refers to the money a company makes from ongoing, regular…
Q: Entity G uses the allowance method for uncollectible accounts. When it later writes off an account…
A: There are two methods Generally Accepted: Direct write off: under this uncollectibles are directly…
Q: 5. On December 31, 2019, an entity declared a cash dividend payable March 31, 2020. On…
A:
Q: Which type of attestation engagements may accountants conduct on compliance with contractual…
A: The answer for the multiple choice question and relevant explanation are presented hereunder : The…
Q: When a cxompany extends credit directly to a customer for a purchase, the sale is recorded as a…
A: Sales can be in cash or credit. Cash sales amount is received immediately and credit sales amount is…
Q: On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated…
A: Depreciation means the amount of expenses written off from the value of fixed assets used in…
Q: uses the periodic method of recording inventory. A pi tory on hand at 3I December 2021. included in…
A: The answer has been mentioned below.
Q: For the next (4) four questions: ABC Corporation acquired P2,000,000 bonds of X Company on January…
A: Transaction costs or the bond issue costs are the expenses that are incurred by the company for…
Q: In determining an employee's net pay, which of the following taxes would not be deducted? a.SUTA…
A: Employees net pay = Gross pay - All payroll deductions
Q: Form W-2 on an annual basis to let the employer know ing the year. nW-2 to supply employer with…
A: The statement is explained as,
Q: 3. A Corporation engaged in this transaction: Declared and issued a stock divide Indicate which…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: An employee receives an hourly rate of $22, with time and a half for all hours worked in excess of…
A: The entire amount of fixed earnings earned during a specific time period is referred to as a…
Q: Carissa receivesacommission of 2.1% on her monthly sales up to $4,800. The rate then increases to…
A: Commission is one form of revenue being earned on sales made by the business. This is calculated as…
Q: The following financial statements information is available from ST Group of companies: Consolidated…
A: Amount of bonds retired = $4664-$3003 = $1661
Q: A partner in a limited liability partnership (LLP): 1. has no liability for acts of malfeasance of…
A: A partner in a limited liability partnership is liable upto the amount invested by him. He has no…
Q: Harding Company Accounts payable $40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash…
A: Quick assets = Accounts receivable + Cash + Marketable securities
Q: True or false 9. The control risk is the risk of auditors fail to detect material misstatement leads…
A: Risk of material misstatement is defined as 'the risk that the financial statements are materially…
Q: On July 1, 2019, Amplex Company purchased a coal mine for $2 million. The estimated capacity of the…
A: The answer is stated below:
Q: Apparelle Co. developed the following equation to predict certain components of its budget for the…
A: COST EQUATION : Y = A + BX WHERE Y IS TOTAL COST , A IS THE FIXED COST , B IS THE VARIABLE COST PER…
Q: In looking over last year’s sales figures, Audio-2-Go’s sales budgeting team recalled…
A: Sales forecasting is the process of predicting future earnings by calculating how much service or…
Q: G. Calamia Company manufactures athletic wear for sporting goods stores and frequently sells its…
A: The accounts receivable present the sales made to customers on account and the balance due from…
Q: Question 3 As at 1 Feb 2020, Aleena Trading had a balance of RM 2,330 in the allowance for doubtful…
A: Bad Debts recovered : Sometimes it appears that the amount from debtors will not be received and Co.…
Q: Blue Ridge Marketing Inc, manufactures two products, A and 8. Presently, the company uses a single…
A: Factory overhead is the cost of producing goods and services or manufacturing in factory it includes…
Q: Use the information in Scenario 9.15. What is the target inventory level needed to achieve a 90%…
A: A distributor of computer monitor purchases monitor from an overseas supplier. The distributor want…
Q: Replacement cost of an asset is related to: A. Market value B. Current costs C.…
A: An asset is the resource owned by an entity which can be used for the daily operations of the…
Q: The following information is available from Avery Company, a manufacturer of security cameras: Cost…
A: Unit product cost = Cost of Goods Manufactured / Total Units Produced
Q: The charter of a corporation provides for the issuance of 94,546 shares of common stock. Assume that…
A: Dividend is paid on the shares outstanding. Shares outstanding = 41,432 - 3,112 = 38,320 shares
Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 8%, on a 90-day,…
A:
Q: A company manufactures t-shirts. In January, the budgeted direct labor hours are 1,960, and the…
A: Solution: Budgeted price per T-shirt = $84,000 / 4200 = $20 Per T-shirt Actual price per T-shirt =…
Q: prepare a trial balance on the sheet provided for the trial balance i included a photo the format…
A: Preparation of trial balance is the third phase in the accounting process. After posting the…
Q: Economics I know the answers are 21% 21% and $18,784,100 i just need to know how to get there. Month…
A: Answer a:- Marginal tax rate in tax year 1 is 21%. Explanation:- Computation of marginal tax rate…
Q: Limited liability refers to an owner's liability for which of the following? I. The amount invested…
A: Under limited liability company the shareholders liability is limited only to the extent of nominal…
Step by step
Solved in 2 steps
- X, resident citizen, had the following information for the year 2022:Gain from sale of office equipment, P20,000Gain from sale of land not used in business (selling price of P300,000), P100,000Gain from sale of shares of stock directly to the buyer, P50,000Gain from sale of shares of stock through the stock exchange (selling price, P200,000), P10,000Bad debt recovery, P50,000How much is the total capital gains tax?Prepare your answers using excel or clearly written computations. Show your work for maximum points. 3. Diego transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $300,000. Determine Diego’s recognized gain on the transfer and the basis for his stock.Problems 15 and 16 are independent problems based on the following capital account balances: Darrow invests $250,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings’s capital balance? $160,000 $168,000 $170,200 $171,200
- C Corporation ("C") had accumulated E&P of $30,000 at the beginning of the current year. During the current year, X distributed property fair market value $30,000, adjusted basis of $35,000 and subject to a liability of $10,000 to shareholder A. This was the only transaction C had during the current year. As a result, A will recognize $20,000 dividend income, and C will have accumulated E&P of $5,000 at the beginning of the next year. True FalseA newly formed corporation received the following assets in exchange for stock: Appreciation Basis FMV (Built in Loss) Adjusted Basis Equipment 300,000 250,000 Land 400,000 430,000 Trucks/Other 400,000 320,000 Building 400,000 220,000 What is the corporation’s adjusted basis of each asset to the corporation? You must show your calculations.ONLY SOLVE PART D and E Jeff Stein incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market value and adjusted bases. FMV Adjusted Basis Inventory $30,000 $45,000 Building 150,000 120,000 Land 180,000 90,000 Total $360,000 $255,000 The fair market value of the corporation’s stock received in the exchange equaled the fair market value of the assets transferred to the corporation by Jeff. The transaction met the requirements to be tax-deferred under §351. a. What amount of gain or loss does Jeff realize on the transfer of the property to his corporation? b. What amount of gain or loss does Jeff recognize on the transfer of the property to her corporation? c. What is Jeff’s basis in the stock he receives in his corporation? d. What is the corporation’s…
- Individuals A and B are planning to form a new corporation: NEWCO. A will contribute to NEWCO several high-end super computers with a combined, fair market value of 80,000. A's adjusted basis in these computers is 10,000. B will contribute to NEWCO 80,000 of cash. NEWCO will issue to each of A and B, 100 shares of voting common stock in exchange for the property and cash contributed. Consequently, there will be 200 common shares outstanding with a total initial value of $160,000? What is A's basis in her shares of NEWCO, assuming the contributions meet all the requirements of IRC 351? a. A’s basis for her stock is 80,000, same as B. b. A’s basis for her stock is 10,000, i.e., a substituted basis. c. A's basis for her stock is zero because the company has not generated E&P A. A’s basis for her stock is 100, which is equal to the number of shares she received.On January 1, 20x1, the partners of ABC Partnership decided to admit other investors. As a result, thepartnership was converted to a corporation. Relevant information follows:Carrying amounts Fair valuesCash20,000 20,000Receivables60,000 40,000Inventory80,000 70,000Equipment 540,000 670,000PayablesA, Capital (20%)B, Capital (30%)C, Capital (50%)50,000150,000200,000300,00050,000N/AN/AN/AThe corporation has an authorized capitalization of P2,000,000 divided into 200,000 ordinary shareswith par value of P10 per share. Shares were issued to the former partners based on their respectiveadjusted capital balances. How many shares did each of the partners receive? Show computation.King’s Road recently acquired all of Oxford Corporation’s stock and is now consolidating the financial data of this new subsidiary. King’s Road paid a total of $850,000 for Oxford, which has the following accounts: Fair value Tax Basis Accounts Receivable $153000 $153000 Inventory 141000 141000 Land 136000 136000 Buildings 276000 221000 Equipment 233000 160000 Liabilities (281000) (281000) a. What amount of deferred tax liability arises in the acquisition?b. What amounts will be used to consolidate Oxford with King’s Road at the date of acquisition?c. On a consolidated balance sheet prepared immediately after this takeover, how much goodwill should King’s Road recognize? Assume a 40 percent effective tax rate.
- 4. Reed Corporation has a deficit in accumulated E & P of $300,000 and has current E & P of $225,000. On 12/31/19, Reed distributes $250,000 to its sole shareholder, Sam, who has a basis in his stock of $55,500. Required: Calculate the following at the Corporation level. a. Dividend distributionb. ROCc. Ending Accumulated E&P at 12/31/19. 5. Tan Corporation has Accumulated E & P of $250,000. Current year E&P of 50,000.It distributes land with a fair market value of $75,000 (adjusted basis of $90,000) to its sole shareholder, Troy: a. What is Troy’s Dividend income?b. How much is added/subtracted in calculating Tan’s E&PX, owns an idle land worth 1M. X works in MCDO as an accounting manager. He decided to exchange the land to shares of stocks of MCDO, a domestic corp. for 10,000 shares with value of 1.2M. As a result, X obtains control, having 90% interest, in the corporation. What is the CGT?X, owns an idle land worth 1M. X works in MCDO as an accounting manager. He decided to exchange the land to shares of stocks of MCDO, a domestic corp. for 10,000 shares with value of 1.2M. As a result, X obtains control, having 90% interest, in the corporation. What is the CGT? a. 6% of 1.2M b. 6% of 200,000 c. 6% of 1M d. None of the above
