taxable income from 1st january 2021 to 30th June.

Q: Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments…

A: Present Value- The value of an investment or amount today is referred to as its present value. It is…

Q: Can you please explain the PV that is used to calculate the present value of tax savings. That is:…

A: Tax is calculated and paid to government after, deducting depreciation. Depreciation is a non cash…

Q: There are 44 employees working for Segura Corporation. They are paid every second Monday for 10…

A: The journal entries are prepared to record the day to day transactions on regular basis. The…

Q: illustrate the earnings management continuum

A: Answer:-  Earnings management meaning:- Earnings management is the practice of using accounting…

Q: Assume that a company provided an income statement as follows:   Sales   $ 524,000 Cost of goods…

A: Cost of goods sold- The total direct cost incurred in preparing the goods is referred to as the cost…

Q: A firm has sales of $1,070, net income of $211, net fixed assets of $514, and current assets of $270…

A: Common Size Balance sheet value of Inventory: This number shows the proportion of total assets that…

Q: Calculate the labour turnover rate by applying a) Separation Method b) Replacement Method c) Flux…

A: 1. Separation Method: Under this percentage of number of Employees left during the year are…

Q: Assume that the entity is a private not-for-profit hospital. During Year 2, the hospital has two…

A: Net Asset without Donor Restrictions: It refers to the part of net assets of a Not for Profit…

Q: Cash Flow Hedge: Long in Commodity Futures The Hershey Company uses futures to lock in the cost of…

A: Future contracts include the agreement to buy or sell an asset between two parties at a specific…

Q: Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company…

A: The income statement is the statement the company prepares to calculate net income or loss after…

Q: The following data is provided for Garcon Company and Pepper Company for the year ended December 31.…

A: The prime cost is the one which includes all the direct costs includes in the making of a product.…

Q: Which of the following statements is true? Oa. A one-time election is available to taxpayers 55…

A: Taxpayer: A taxpayer may be an individual or business entity, the one is obligated to pay taxes to a…

Q: 1. A TV company purchased a machinery for P 100,000.00 on July 1, 2015. It is estimated that it will…

A: Depreciation expense is the reduction in the value of asset due to its wear and tear or use.  The…

Q: B had earned income of $80,000 in 2020 and $95,000 in 2021. At the end of 2030 their pension…

A: RRSP Deduction: It is  the maximum amount  which can  be invested  in a retirement account  by  a…

Q: Which of the following statements is true? Oa. A one-time election is available to taxpayers 55…

A: A one-time election is available to taxpayers 55 years of age or older which allows them to sell…

Q: Which of the following statements is true? Oa. A one-time election is available to taxpayers 55…

A: Income Tax- Income tax is best defined as the amount of tax levied by the government on the earnings…

Q: Prepare a bond premium amortization schedule for the first 4 interest periods.

A: Bond :- A form of Debt instruments which is issued by Companies & Governments. It is a type of…

Q: Suppose that we can describe the world using two states and that two assets are available, asset K…

A: Arbitrage: The arbitrage process reduces risk by purchasing and selling different securities in a…

Q: TB MC Qu. 11-77 (Algo) The net effect on next-year's operating income of adding the feature to the…

A: Net Effect on Operating Income = Incremental Revenue Earned - Incremental Costs Incurred

Q: Wildhorse Co. reports net income of $62,000. Partner salary allowances are Pitts $17,000, Filbert…

A: Division of net income: In partnership, income is dividend between partners in the profit/income…

Q: rporation entered into a 20 year franchise that allows ZZ Corporation the right to use its…

A: If the notes are paid by the annual installments that carry the payment for interest and payment for…

Q: A fire wiped out Plymouth Paper Company's Inventory. The insurance company will accept an estimate…

A:

Q: Purchase 1 2 3 Glasgow Enterprises started the period with 80 units in beginning inventory that cost…

A: Under the weighted average inventory method, weighted average cost per unit is calculated by…

Q: 6.On January 1, 2019, Cruiser Corporation issued 5,000 of its 5-year, P1,000 face value, 11% bonds…

A: Introduction: In simple terms, bond is a loan taken by the issuer company from the person who…

Q: Sales units Sales dollars Production units March 12,000 $144,000 12,300 April 15,000 $180,000 15,300…

A: Manufacturing overhead costs means all type of indirect costs incurred in the production and…

Q: From April 1 through October 31, Coles County Highway Department hires temporary employees to mow…

A: High-low method is one of the method to separate the variable cost and fixed cost from the mixed…

Q: Loose Ends in Valuation ABC bought a piece of land in a highly developing area for a purchase price…

A: Assets- Assets have liquidity, which means they can be converted into cash when needed. Purchasing…

Q: The following selected transactions relate to cash collections for a firm that mainta $100 change…

A: Journal- A general journal entry is used to visualize the business transactions of any organization.…

Q: had cost of goods sold of $6,000 million, ending inventory of $2,500 million, and average inventory…

A: The ratio analysis helps to analyse the financial statements of the business on regular basis on the…

Q: e statement of realization and liquidation of ABC Corp are as follows: Assets to be realized…

A: Realisation / Liquidation Statement: When the business firm's activities comes to an end or the…

Q: Question A4 Saylor Ltd is considering a new contract that will require four additional skilled…

A: Relevant cost:  Relevant cost is the cost which is relevant in decision making. Past cost are sunk…

Q: At December 31, Rolison Consulting’s financial records show the following selected account…

A: Introduction: Retained earnings are a significant accounting topic. The word refers to a company's…

Q: Jax Incorporated reports the following data for its only product. The company had no beginning…

A: The gross profit is the excess of revenue over the cost of goods sold. It is also the amount…

Q: Karim Corporation requires a minimum $8,100 cash balance, Loans taken to meet this requirement cost…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: per 325 8,310 275 7,200 220 6,550 200 5,760 75 4,960 information from the high- and low-volume…

A: Labor costs refer to the sum total of wages paid by an employer to its employees for the particular…

Q: An IE works in the automation department of a surgical equipment manufacturing company that produces…

A: Project Decision: The management plans the spending on fixed assets using the capital budget as a…

Q: A network consists of the activities in the following list. Times are given in weeks Activity…

A: Slack is the spare time in any activity which if utilized, i.e. if that activity is delayed by that…

Q: Oswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on April 12 of…

A: Introduction:- If the customer made payment within discount period, he is eligible for sales…

Q: Ironwood Company manufactures cast-iron barbeque cookware. During a recent windstorm, it lost some…

A: Variances are the values that shows the change in the cost estimated and the actual cost incurred on…

Q: In each accounting period, a manager can select the inventory costing method that yields the highest…

A: Change in accounting policy can only be done if it helps improve the accuracy of the organization's…

Q: Cash Accounts receivable Accounts payable Common stock Unearned Revenue Revenues Rent Expense…

A: The accounts in the books usually have two types of normal balance; debit and credit. Here, debit…

Q: $500,000.00 Gross Loan, 10.75% APR, $375,000 Construction Escrow Holdback, and $15,000 Prepaid…

A: Assumptions and points taken into consideration for calculation of prepaid interest: Days in the…

Q: TRUE or FALSE. A distinct good or service can be described as Not interrelated with other goods or…

A: Goods- Goods include things you can typically consume or possess, such as clothing, food,…

Q: What are the advantages and disadvantages of an adverse audit

A: Adverse audit refers that the opinion has been provided on the financial statements that: The…

Q: Genna John started John Services Corp., a firm providing art services for advertisers, on June 1. On…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost…

A: Variance occur due to the difference between actual results and standard or budgeted Costs. Price…

Q: When credit card sales occur, the seller may receive cash immediately, or within a few days,…

A: The given statement is true.

Q: After liquidating noncash assets and paying creditors, account balances in the Oriole Co. are Cash…

A: Dissolution of a partnership firm is a process in which relationship between the partners of the…

Q: Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductions,…

A: The standard deduction is allowed to taxpayers and depends upon the filing status. The taxpayer can…

Q: Question 1  An asset costs $420,000 and will be depreciated in a straight-line manner over its…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.