Accouting

In: Business and Management

Submitted By jlf422003
Words 411
Pages 2
A business bad debt is deductible for tax purposes as a(n): d. A business bad debt is deductible for tax purposes as an ordinary business deduction.
A business machine valued at $800 was contributed to a charitable organization during the year. The machine cost $1,000 but was depreciated down to $600 before the donation was made. Indicate the correct income tax treatment with respect to the donation. a. An ordinary income property charitable deduction is limited to basis. There is no income recognition when making a charitable donation.
A business tax deduction for business gifts is restricted to $25 per year per: d. A business tax deduction for business gifts is restricted to $25 per individual donee per year.
A calendar-year corporation incurs $53,000 of start-up costs. If the corporation began business on August 1 of the current year, what is the maximum amount of the start-up costs that it can deduct against business income in the current year? d. Taxpayers are allowed $5,000 in the rst year, plus amortization of the remaining balance over 180 months. The $5,000 is reduced, however, by the amount by which start-up costs exceed $50,000. Thus, in this case, the corporation may deduct $2,000 plus ($51,000 / 180 months x 5 months) = $3,417.
A contribution made to the following donee is not deductible: b. Oxford University, England Charitable contributions must be made to charities that are incorporated in the United States.
A corporation paid $50,000 for qualied child care expenses during the year in order to provide child care for its employees. The corporations child care credit is: a. $0 b. $5,000 c. $10,000 d. $12,500 e. $25,000 d. $50,000 x 25%
A deduction for salaries and wages can include: d. A deduction for salaries and wages can include both bonus payments and payments for services performed in prior years.
A nonbusiness bad debt is deductible…...

Similar Documents

Accouting

...CHAPTER 2 Learning Objective: 02-01 Analyze routine economic events-transactions-and record their effects on a companys financial position using the accounting equation format. The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $245,000 (assume Marchetti uses a perpetual inventory system); (2) paid $60,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $160,000 to credit customers for $300,000; (4) collected $280,000 in cash from credit customers; and (5) paid suppliers of inventory $225,000. |    Analyze each transaction and show the effect of each on the accounting equation for the corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change for items which affect more than one account in an account category (i.e., assets, liabilities, etc.)) | | | Assets | = | Liabilities | + | Paid-in capital | + | Retained Earnings | (a) | $245,000 | | $245,000 | | | | | (b) | (60,000) | | | | | | (60,000) | (c) | 140,000 | | | | | | 140,000 | (d) | 0 | | | | | | | (e) | (225,000) | | (225,000) | | | | | A company that has a fiscal year-end of December 31: (1) on October 1, $25,000 was paid for a one-year fire insurance policy; (2) on June 30 the company lent its chief financial officer $23,000; principal and interest at 5% are due in one year; and (3) equipment costing......

Words: 3427 - Pages: 14

Accouting

...British Journal of Industrial Relations 49:S2 July 2011 0007–1080 pp. s353–s375 doi: 10.1111/j.1467-8543.2010.00801.x Transnational Labour Solidarity and Social Movement Unionism: Insights from and beyond a Women Workers’ Strike in Turkey bjir_801 353..375 Tore Fougner and Ayça Kurtoglu ˘ Abstract Through an analysis of solidarity across borders and social groups in connection with and beyond a strike on the part primarily of women workers at a foreignowned factory in Turkey’s Antalya Free Zone, this article contributes to the debate on the two union renewal strategies of transnational labour solidarity and coalition building with social movements. In the case at hand, the extensive strike-related support on the part of external unions and the women’s movement illustrates the positive difference that solidarity practices can make. However, looking beyond the strike itself, the case points to significant challenges related to the development of deeper and more proactive solidarity across borders and social groups. 1. Introduction What are the implications for unions of political economies being restructured in neoliberal terms, and production being re-organized transnationally? This question has generated extensive debate among unionists and academics alike, and one can somewhat synthetically distinguish among a fatalist position viewing the transformations in question as so fundamental that unions are left with few options but to resign, a denialist position......

Words: 11210 - Pages: 45

Accouting

...Assignment # 2 Working with Federal Reserve’s Publications Laila HP Instructor’s Name: Money and Banking 1. Describe the Federal Reserve’s assessment of the current economic activity and financial markets. Federal Reserve is a banking system of the United States and the purpose of Federal Reserve system is to address banking panics, furnish and elastic currency, to manage money supply in the nation, to maintain the stability of the financial system etc. Currently a sharp fall in exchange rates have boosts interest rates and have depresses the stock prices and created weakness in current economic activities too. In recent years economy of United States has experienced an extended period of economic expansion due to brief and shallow recession which has made the economy of United States less volatile and less recession prone. In the current economic environment of slow growth, high unemployment, and slow credit markets, the Federal Reserve has adopted a stimulatory policy. And the Federal Reserve has given the very low level of interest rates, over the recent period and also has taken additional measures to open up financial markets and stimulate spending. The Federal Reserve have responded forcefully to the significant deterioration in financial market conditions by continuing to ease monetary policy aggressively late last year.  Following are the basic operations of Federal Reserve to maintain Financial market stability and current economic......

Words: 1187 - Pages: 5

Accouting

...ACO01– FINANCIAL ACCOUNTING 2 FINAL EXAM ANSWER SHEET 2014 ------------------------------------------------- Name : Student ID : ------------------------------------------------- Test code : Time : 90 minutes TOTAL MARKS: | 1st Invigilator | 1st Examiner | 2nd Examiner | 2nd Invigilator | Part A. Multiple choice questions (40 marks) Please fill in the appropriate circles corresponding to your answers. 1. 2. Ⓐ Ⓑ Ⓒ 3. Ⓐ Ⓑ Ⓒ 4. Ⓐ Ⓑ Ⓒ 5. Ⓐ Ⓑ Ⓒ 6. Ⓐ Ⓑ Ⓒ 7. Ⓐ Ⓑ Ⓒ 8. Ⓐ Ⓑ Ⓒ 9. Ⓐ Ⓑ Ⓒ 10. Ⓐ Ⓑ Ⓒ 11. Ⓐ Ⓑ Ⓒ 12. Ⓐ Ⓑ Ⓒ 13. Ⓐ Ⓑ Ⓒ 14. Ⓐ Ⓑ Ⓒ 15. Ⓐ Ⓑ Ⓒ 16. Ⓐ Ⓑ Ⓒ 17. Ⓐ Ⓑ Ⓒ 18. Ⓐ Ⓑ Ⓒ 19. Ⓐ Ⓑ Ⓒ 20. Ⓐ Ⓑ Ⓒ 21. Ⓐ Ⓑ Ⓒ Part B. Exercises (60 marks) Transaction | Account Titles | Debit | Credit | 1. | Purchased lot | 225,000 | | | Old building | 120,000 | | | Cash | | 345,000 | | Tear down old building | 34,500 | | | Fill and level the lot | 51,000 | | | Construction cost | 1,140,000 | | | Cash | | 1,525,000 | | | | | 2. Ming Yue Co | Land | 154,665 | | | Land improvements | 55,440 | | | Building | 162,030 | | | Closing costs | 19,600 | | | Cash | | 387,850 | | | | | 3. Fineses Co | Depreciation (1 year) = 13,250 | | | | Depreciation expense | 59,625 | | | Accummulated depreciation | | 59,625 | | | | | 4. | Cash | 35,000 | | | Accummulated depreciation | 59,625 | | ...

Words: 385 - Pages: 2

Accouting

...CHAPTER 10: STRATEGY AND THE MASTER BUDGET QUESTIONS 10-1 Compel strategic planning and facilitate implementation of strategic plans. An organization’s strategy, strategic plans, and budgets are interrelated. Preparing budgets compels reviews of an organization’s strategy and its strategic plans and can facilitate implementations of the strategic plan. Feedback from budgets often results in improvements to an organization’s strategy and strategic plan. Serve as a basis for performance evaluation. Budgets serve as the benchmark against which actual performance can be compared. Budgets are a better basis for judging performance than past performance for two reasons. First, budgeted amounts take into account expected changes and improvements in the environment. Second, past performance is a result of past events and operations and may not be suitable to serve as a benchmark. To the extent past performance was not effective/efficient it does not make sense to use this as the standard against which actual performance is compared. Motivate managers and employees. Budgets, if internalized, serve as goals for managers and employees and, if properly implemented, can motivate them toward achievements of the goals. Promote coordination and communication within the organization. Budgets compel managers to think of interdependencies and interrelationships among subunits of the organization. A budget is also a communication device that helps all employees......

Words: 23702 - Pages: 95

Accouting

...Quantitative Case Report Checklist Executive Summary (One page) Six paragraphs Situational Analysis Overview Main SWOT Points related to the Issue Problem Analysis Review of Alternatives and Decision Criteria Recommendation with Rationale Action Plan with Critical Step, Potential Problem and Contingency Plan Present a good snapshot of the report 1.Situation Analysis – Overview (One paragraph) Should provide information about Company (age, location, type of business) Products/services and Primary customers Competitive advantage Current financial situation Current decision to be made Description of current (not past) situation supported by relevant facts from the case Situation Analysis - SWOT (One page with proper format) Assess the capabilities of the company (3-4 relevant points in each) Strengths Weaknesses Opportunities Threats Strengths & Weaknesses – internal factors – owned or controllable by the company Opportunities & Threats – external factors – uncontrollable by company For each point: Statement of the existing factor Explanation of why it is a S W O or T 2.Problem Analysis (One paragraph) Should include “Why is that”? “how significant is it?” Statement of the problem Three causes as to why it happened Significance of the problem Urgency required to solve the problem Work Smart Tip -Make sure you have a clear statement AND a case supported explanation to go along with......

Words: 1170 - Pages: 5

Accouting

...The electricity company uses past experiences. It knows the credit limit of its customers and amount of electricity being consumed by the customers for last few months. They can calculate the revenue on December 31 by using the past usage of several months and the amount received from the customers. The law firm can only recognize revenue when they deliver some sort of service to client. If they don’t deliver any service, they will not count $10,000 as revenue. At end of 2010, the firm can calculate the revenue on the basis of services provided. The firm may provide different types of services with different fees for each service. Depending upon the services used by the client and percentage completion method of services revenue can be calculated. Answer Revenue can be recognized at the end of December 2010. i.e. 5000 they were given with the advance and if they provide or didn’t provide any service till December 2010 they can count it. Raymond cannot count any of the amounts i.e. $260,000 as revenue in 2010. It depends upon the passengers who are using the service. If all the passengers are using the service in 2011, then it will be counted as revenue in 2011. If any of them cancel their reservation and don’t use the service, it will affect revenue in 2011. Answer: Revenue can be known. Allowance account should be made for bed debts account. Raymond is just a travel agent. He sell the tickets and that’s his job. The price of trees varies by height, so selling......

Words: 765 - Pages: 4

Accouting

...Case 09-1 Velocity Cellular In conjunction with quarterly review procedures, the controller of Velocity Cellular Services (Velocity or the Company) provided the audit engagement team with background information about the Company’s promotion of its new prepaid phone service plan. The controller also provided the engagement team with an accounting memo discussing the Company’s new plan. MEMO To: From: Subject: Date: Audit Engagement Team Controller, Velocity Cellular Services Accounting for New Prepaid Phone Service Plan August 31, 2008 Velocity Cellular Services (Velocity or the Company) sells wireless services and products based on the Global System for Mobile Communications (GSM) standard. Under the GSM standard, each subscriber is required to have an activation card to access the network; the activation card is therefore necessary for subscribers to use their cellular phones. The activation card identifies the subscriber, provides the subscriber with a unique phone number, and only works on a specific carrier’s network (i.e., the activation card is not interchangeable with other carrier networks). The Company is planning to promote and market a prepaid phone service plan called “Power Starterpack” as part of its line of service plans to existing wireless subscribers (i.e., individuals who already own a cellular phone). Power Starterpack — Prepaid Phone Service Plan The Power Starterpack will provide each subscriber with a new activation card......

Words: 584 - Pages: 3

Accouting

...Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 a. What is the break-even point in passengers and revenues per month? 160x=70x-3150000 90x=3,150,000 X= 35,000 (passengers) 160(35,000)= $5,600,000 b. What is the break-even point in number of passenger train cars per month? 90(.70) =63 X= 35,000 (passengers) Passenger train cars= 35,000/63 =556 c. If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars? 190x=70x-3150000 120x=3,150,000 X= 26,250 (passengers) 90(.60) =54 X= 26,250 (passengers) Passenger train cars= 26250/54 =$1,417,500 d. (Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in number of passenger train......

Words: 514 - Pages: 3

Accouting

...これだけは知っておきたい! 国際財務報告基準Q&A KeyWord1 国際会計基準審議会の発足 Q 国際会計基準審議会(IASB)の設立の経緯について教えてください。 A 1.IASC の発足および IOSCO の影響 国際財務報告基準(IFRS)の設定主体である国際会計基準審議会(IASB)は 2001 年から活動 を開始していますが、その活動は、前身の国際会計基準委員会(IASC)より引き継がれたもの です。 IASC の発足は、1973 年に遡ります。IASC は、世界 9 カ国(英・加・米・豪・蘭・西独・仏・墨・日) の職業会計士団体により設立され、日本からは、日本公認会計士協会がメンバーとして参加し ていました。IASC は発足以来、現在の国際財務報告基準の原型となる国際会計基準(IAS)を 作成していました。 1980 年代に入ると、1986 年に結成された証券監督者機構(IOSCO)からの働きかけを受けるな ど、IASC は新たな段階にはいりました。IOSCO は、米国の証券取引委員会(SEC)や日本の大 蔵省(現在は金融庁)など、資本市場の規制当局者により構成されていました。IOSCO が IASC に関心を持った理由は、1980 年代の国際資本市場の拡大、とりわけ多国間公募の拡大でした。 IOSCO は 1987 年 6 月から IASC の諮問グループのメンバーでしたが、1988 年 11 月に開催さ れた IOSCO の第 13 回メルボルン総会をもって正式に、IOSCO が IASC による IAS の改善作業 を奨励することおよび IASC の活動を支援していくことを表明しました。 IOSCO からの支持を受けて、IASC は、会計処理を可能な限り統一し国際的企業間比較を可能 にするという目標に向けて精力的に作業を行いました。1989 年 1 月に公開草案として E32「財 務諸表の比較可能性」を公表し、IAS の改訂作業を開始しました。6 年間にわたるこの比較可 能性改善プロジェクトは、1993 年 11 月にオスロで開催された IASC の理事会において 11 の基 準書が一括改訂されたことにより完了しました。 1973 年 国際会計基準委員会(IASC)の発足 1987 年 証券監督者機構(IOSCO)が IASC 諮問グループに参加 1993 年 比較可能性改善プロジェクトの完了 2000 年 2001 年 コア・スタンダードの完成 SEC のコンセプト・リリースの公表 欧州連合(EU)による IAS の EU 域内の上場企業への適用を決定 国際会計基準審議会(IASB)に組織改正 2002 年 米国財務会計基準審議会(FASB)と IASB によるノーウォーク合意 2.コア・スタンダードの完成と米国、EU の対応 比較可能性改善プロジェクトにより見直された IAS は、IOSCO にとって満足の行くものではあり ませんでした。このため、1995 年 7 月に IASC と IOSCO は、IAS を再度見直すことに合意し、 1999 年 6 月までに「包括的コア・スタンダード」を完成させることを公表しました。IOSCO が受入 れ可能と認めるコア・スタンダードが完成すれば、グローバルな市場でのクロス・ボーダーの資 金調達および上場目的のために、IAS......

Words: 429 - Pages: 2

Electronic Processing and the Role of Professional Accouting and Finance Bodies and Cods of Conduct

...------------------------------------------------- Electronic Processing and The role of professional Accouting and finance bodies and cods of conduct Accounting and Finance ATAR Assignment June 10, 2016 Ramla Mohamed Australian Islamic College June 10, 2016 Ramla Mohamed Australian Islamic College Part 1 a) What membership type are available for the organisation? Types of membership include Associate, CPA and Fellow are an example of memberships available to CPA Australia. b) What qualifications/experiences are required to become a member? Associate(ASA)- As an ASA you have six years to complete the CPA Program, including six education subjects and the experience requirement, in order to become a CPA CPA-To call yourself a CPA, you must: hold a degree or postgraduate award recognized by CPA Australia, in any discipline, have demonstrated competence in our foundation exams, usually demonstrated by the completion of an accredited degree, have completed the CPA Program, including the experience requirement, within six years, undertake continuing professional development (CPD) activities each year and comply with a code of conduct set by CPA Australia Fellow- You must be a CPA with at least 15 years' full-time work in accounting, finance or business. (1) c) How do you maintain membership? As a member of a leading global professional body, you understand the value of life-long learning. Whilst there is an obligation to participate in continuing......

Words: 1225 - Pages: 5

Accouting

...1. (TCO F) Computing unit product costs involves averaging in: Job-Order Costing Process Costing A Yes No B Yes Yes C No Yes D No No (Points : 5) Choice A. Choice B. Choice C. Choice D. 2. (TCO F) Luft Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: Units Percent Complete with respect to Conversion Beginning work in process inventory 11,000 90% Started in production during June 58,000 Ending work in process inventory 17,000 10% According to the company's records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. Additional conversion costs of $343,830 were incurred in the department during the month. What was the cost per equivalent unit for conversion costs for the month? (Round off to three decimal places.) (Points : 5) $8.070 $7.891 $5.928 $4.584 3. (TCO F) Lucas Company uses the weighted-average method in its process costing system. The company adds materials at the beginning of the process in the Forming Department, which is the first of two stages in its production process. Information concerning operations in the Forming Department in October follows: Units Material Cost Work in process on October 1 ......

Words: 466 - Pages: 2

Accouting

...Question Mark Goldfinger owns Beauty Sparkle Ltd, a company that manufactures silver party jewellery. One of your Asian customers places a special order of 20,000 jewellery sets (necklace plus earrings) at a price of £5 each. To take this project Mark need to invest additional £150,000 into the business. Mark asks you for help in evaluating the profitability of this request. His accounting team has provided you with the following information related to this order that m ay be helpful with your evaluation: £ Administration expenses 2,000 Depreciation 5,000 Electricity 3,000 General overhead expenses 1,000 Jewels 5,000 Other variable costs 5,000 Packaging 5,400 Production team wages 10,000 Rent 4,000 Salaries 6,000 Silver 20,000 The company has only half of the required silver in stock. The rest needs to be purchased from the wholesaler. However, the current cost for silver is 20% higher now than in previous deliveries.  40% of the electricity cost is fixed.  Production team wages – the production team currently has some spare time in which it could complete this contract.  Salaries – the management team is currently overstretched in their duties. However, the directors have agreed to pay them a one off bonus of £100 if management c arries out the supervision of this contract.  Depreciation – the depreciation rates that are set at the beginning of the year include extra capacity to ensure contracts like this one can...

Words: 520 - Pages: 3

Accouting

...Relevance Relevance means that the information in financial statement is can make a difference in the outcome of a decision. Information that made to be relevant must provide about past transaction and events, predict future conditions and confirming or correcting past evaluation by the users made (Keith, etal 2005). For example: in the balance sheet the asset and liabilities must reported in two categories, fixed and non-fixed. * Materiality The relevance of information is affected by its nature and materiality. Materiality is the term to relative the important of an item or event. Materiality is depends on the size of the items or error judged in the particular circumstances of its omission or misstatement (Wood & Sangster 2008). For example: in the multinational company, a mistake in recording the 100 box of staples may not be important, because the staples are not a material item. Materiality is means the items that is trivial for the business (Wood & Sangster 2008). Reliability “Accounting information is reliable to extent that users can depend on it to represent the economic conditions or events that it purports to represent (Gary & Curtis 2009)”. Reliability of information means that the information is free of error and bias. For example: * Faithful representation Faithful representation is very important to provide the transactions and others event in accounting information. It is also to disclosure the risk of error surrounding......

Words: 856 - Pages: 4

Accouting

...  The department started 290,000 units into production during the month and transferred 300,000 completed units tothe next department.   REQUIRED: Compute the equivalent units of production for the first department for June, assuming that thecompany uses the weighted-average method of accounting for units and costs.  (Points : 20) 3 . (TCO B) A tile manufacturer has supplied the following data:   Boxes of tile produced and sold 625,000   Sales revenue $2,975,000   Variable manufacturing expense $1,720,000   Fixed manufacturing expense $790,000   Variable selling and admin expense $152,000   Fixed selling and admin expense $133,000   Net operating income $180,000   Requ ir  ed:   a. Calculate the company's unit contribution margin   b. Calculate the company's unit contribution ratio   The department started 290,000 units into production during the month and transferred 300,000 completed units tothe next department.   REQUIRED: Compute the equivalent units of production for the first department for June, assuming that thecompany uses the weighted-average method of accounting for units and costs.  (Points : 20) 3 . (TCO B) A tile manufacturer has supplied the following data:   Boxes of tile produced and sold 625,000   Sales revenue $2,975,000   Variable manufacturing expense $1,720,000   Fixed manufacturing expense $790,000   Variable selling and admin expense $152,000   Fixed selling and admin expense $133,000   Net operating...

Words: 361 - Pages: 2

Anima Yell! | Dinesh D'Souza | Shindo (Movie)