O Townhouse and rental income are Sam's separate property; condo becomes community property
Q: Apple Company manufactures wooden chairs and uses a standard cost system which sets predetermined…
A: Cost Variances It is the difference between the actual cost and the budgeted cost and is also called…
Q: Compare the Statement of Profit or Loss and Statement of Financial Position of a sole trader with…
A: A sole trader often called a sole proprietorship, is a simple business structure in which one…
Q: The company issued 2,500, P125 par ordinary shares for an outstanding bank loan of P350,000. On this…
A: The shares premium or discount can be evaluated by difference between face value of shares and…
Q: Otto Company borrows money on January 1 and promises to pay it back in four semiannual payments of…
A: Introduction: The concept of present value implies that money today is worth more than money…
Q: 16. The primary goal of managerial accounting is to provide information to: a. creditors b.…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Princess Corp. purchased 100,000 ordinary shares at P80 per share on January 1, 2020. These shares…
A: The ordinary shares means the shares whose shareholders have the right to participate in the…
Q: Feagin Company’s actual variable overhead was $73,000. Actual direct labor hours were…
A: Formulas: Variable overhead spending variance = (standard variable overhead rate - actual variable…
Q: A corporation has taxable income from operations of $1 million. In addition, it received $100,000 of…
A: Introduction: Income might take the form of cash, real estate, or services. Unless specifically…
Q: 19. Materials C is in stock due to the previous over-buying, and they have restricted use. No other…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Sources of business ownership.
A: Introduction:- Funds play vital role in every business for running operations. Companies cannot run…
Q: Problem no. 1 ABC Corporation has the following transactions throughout the year of 2020: Jan ABC…
A: The amount received or fair value of asset (tangible or intagible) above the face value of issued…
Q: LOGARITHMS You are a rising star in the music industry, and you have just received word that you…
A: 1) Amount at the end = Amount invested × (1+rate)^n 600,000 = 500,000 × (1+.0315)^n 1.2 = 1.0315^n…
Q: A stock you are interested in is priced at $105, it's recent dividend was $5, if the market expects…
A: Current price of share = $105 Recent dividend = $5 Expected growth rate in dividend = 4%
Q: Mateo, sole proprietor reported the following changes during the year from his business: Increase…
A: Income for the Year = Increase in Total equity - Additional investment during the year + Drawings…
Q: Traditionally in financial reporting, financial capital is prominent in disclosures. Over the period…
A: There are six types of capital used in integrated reporting: Financial capital Manufactured capital…
Q: he company issued 2,500, P125 par ordinary shares for an outstanding bank loan ofP350,000. On this…
A: Share premium is the amount paid in excess of par value of shares. Share premium = Number of shares…
Q: Mr B aged 63 years, has earned rupees 75,00,000 out of his business . His ex- wife gifted him cash…
A: The taxable income of taxpayers is the income liable to tax and it is the income used to determine…
Q: 1. Calculate the gross income for someone who works 38 h at $12.50/h.
A: Gross income of person means how much an individual is earning in particular period of time. If an…
Q: Problem no. 2 Ray Corp. declared a 5% stock dividend on its 10,000 issued and outstanding shares of…
A: 5% stock dividend on 10000 shares @P2 par value = 5% x 20000 = P1000
Q: A. The first costs of an equipment is P 65, 000 and a salvage value of P 3, 000 at the end of its 6…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: urred. These two products can be sold as is or processed further. Further processing of either…
A: To decide whether a product should be processed further or sold as it is , the incremental sale…
Q: Before After Difference Reason Adjustment Adjustment Rp Rp Rp Interest still has to be received 150…
A: An adjusting journal entry is usually made at the end of an accounting period to recognize an income…
Q: 5. What is the value of the total cost? A company makes a single product with a total capacity of…
A: Total Cost of Production: You may determine the cost of production, also known as the cost price or…
Q: Assume A, a "United States Person", owns 9.5% of the vote and value of X, a foreign corporation. A…
A: The answer for the question on U S shareholder is discussed hereunder : A, a United States person,…
Q: of computing vat payable
A: VAT refers to the type of tax imposed by the government over the sale of goods and services.
Q: Contributed capital: 5% preference share, P50 par, cumulative, 30,000 shares issued, dividends 5…
A: Retained Earnings: - The total amount that remains after the payment of dividends and taxes is known…
Q: Q1a. Allocate the service department costs to the two operating departments using the direct method.…
A:
Q: 1. Tara transfers land with a $600,000 adjusted basis and a $700,000 FMV to a corporation in a Sec.…
A: The taxpayers are can transfer the property to the corporation in exchange for the corporation’s…
Q: The following information are given: Budgeted…
A: Formula: Applied overhead = Actual production x Predetermined Manufacturing overhead rate where,…
Q: Blue Corporation distributes land and building having a $70,000 adjusted basis and a $200,000 FMV to…
A: Introduction S Corporations some times distributes appreciated property to its shareholders, for the…
Q: Required information (The following information applies to the questions displayed below.] Gerald…
A: Introduction: Individuals, corporations, and other legal organisations are all subject to the…
Q: The sole proprietor of the FM2 Financial Services, Bondo, receives all accounting profits earned by…
A: Economic Profit Economic Profit and accounting profit are different. The calculation of economic…
Q: Martin Company uses a two-way analysis of overhead variances. Selected data for September 2012…
A: Solution: Actual variable factory overhead = P196,000 Standard direct labor hours =33000 Variable…
Q: 2. Lynx Oil Company has 3 wells on a lease in Texas and is the only working interest owner. Indirect…
A: Indirect costs or those who are incurred through a variety of activities but cannot be assigned to…
Q: A household that is a net borrower owes more money to its creditors than it has saved or has lent…
A: If there is increase in the interest rates in an economy, the income effect will drive their current…
Q: 3. Consider the abbreviated financial statements below for 2015 and 2016 Arch Enterprises 2015 &…
A: Owners Equity = Current Assets + Net Fixed Assets - Current Liabilities - Long Term Debt
Q: 1. J. Santos promoted featuring Manny amounted tO P3,000,000 and additional receipts from TV…
A: For the purpose of the amusement tax, the term "gross receipts" embraces all the receipts of the…
Q: A patient is admitted for appendectomy. His Health insurance will cover up to Php 24,000. His entire…
A: An cost is the decrease in the value of an asset caused by its usage to produce income. If the…
Q: On 1 January 20x2, Company A issued a convertible bond with principal amount of USD200,000, with…
A: When bonds are issued at a price above it's par value, it is called a Premium Bond.
Q: Individuals Julie and Brandon form JB Corporation. Julie transfers cash of $425,000 in exchange for…
A: Given information, FMV of stock received =$410,000 Note received = $15,000 Adjusted basis of…
Q: Question How should the acquired asset be valued and reflected on Company A's books on January 1,…
A:
Q: XYZ Corp. declared P1,800,000 cash dividends to its preference and ordinary shareholders in 2020. No…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: tatement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Johnstone…
A: Costs of Goods manufactured: - Cost of Goods manufactured is the amount which arises due the…
Q: 6. A capital investment has a net present value of $1 000 at a rate of return of 10 percent. At a 12…
A: Net Present Value (NPV): When doing an analysis of the profitability of a project or investment,…
Q: is computed using the straight line method. i useful life of the equipment is five years with alue.
A: Unrealized gain refers to the profit made on the sale of an asset that has not been realized yet.…
Q: a) Using the Throughput Accounting method, determine the optimal production schedule, and…
A:
Q: Compute the variances in dollar amount and in percentage. (Round to the nearest whole percent.)…
A: Variance: The variance is a measurement of the variability in the data. The formula for calculating…
Q: 8. How much must you deposit if a bankoffers 2% interest and your goal is to have $1500 next year?
A: As per our protocol we provide solution to one question only but as you have asked three questions…
Q: The cost to operate a clothes dryer for a year is $80.25. If the rate for electrical energy is…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: On January 1, a company agrees to pay $12,000 in eight years. If the annual interest rate is 4%,…
A: Present value (PV) which is the concept of accounting that states the sum amount today that is…
Step by step
Solved in 2 steps
- Janet and James purchased their personal residence 15 years ago for $312,500. For the current year, they have an $78,125 first mortgage on their home, on which they paid $3,906 in interest. They also have a home equity loan to pay for the children's college tuition secured by their home with a balance throughout the year of $136,750. They paid interest on the home equity loan of $13,675 for the year. Calculate the amount of their deduction for interest paid on qualified residence acquisition debt and qualified home equity debt for the current year. It an amount is zero, enter "0". a. Qualified residence acquisition debt interest $ b. Qualified home equity debt interest $S Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the curre year, Junior: Personally stayed in the home for 14 days. • Rented it to his favorite brother at a discount for 14 days. ● • Rented it to his least-favorite brother for 17 days at the full market rate. • Rented it to his friend at a discounted rate for 9 days. • Rented the home to third parties for 79 days at the market rate. Did repair and maintenance work on the home for 2 days. • Marketed the property and made it available for rent for 221 days during the year (but did not rent it out). How many days of personal use and how many days of rental use did Junior experience on the property during the year? ● Days of personal use Days of rental useSeveral years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year Junior: Personally stayed in the home for 29 days. Rented it to his favorite brother at a discount for 35 days. Rented it to his least favorite brother for 9 days at the full market rate. Rented it to his friend at a discounted rate for 13 days. Rented the home to third parties for 75 days at the market rate. Did repair and maintenance work on the home for 2 days. Marketed the property and made it available for rent 166 days (but not actually rented out), during the year (in addition to the days mentioned above). How many days of personal use and how many days of rental use did Junior experience on the property during the year? Days of personal use Days of rental use
- The Rins own a home in Boston. They paid $780,000 for their home three years ago. Their current balance on their mortgage is $660,000. At the time that their home was worth $900,000, they refinanced their mortgage. Their new mortgage is for $800,000. In addition to the home in Buston, the Rins alco own a vacation home in Florida. They paid $350,000 for the home several yeas ago, and the current mortgage on the seconed home is $295,000. How much inretest the Rins are allowed to deduct if the excess proceeds from the refinanceing are used to buy or improvement their main home.Jack and Kim were coworkers who fell in love and got married. They sold their principal residence in MD for the net amount of $1,000,000 after all selling expenses. Jack and L bought the house 9 years ago and occupied it until it was sold. On the date of sale, the house had a cost basis of $200,000. What amount of gain should Jack and Kim recognize from the sale of the residence? $1,000,000 $800,000 $300,000 $550,000Alexa owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses inconnection with her condo:Insurance $ 2,000Mortgage interest 6,500Property taxes 2,000Repairs & maintenance 1,400Utilities 2,500Depreciation 14,500 During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personalpurposes during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unlessotherwise specified, Alexa has no sources of passive income.Assume Alexa receives $30,000 in gross rental receipts. a. What effect do the expenses associated with the property have on her AGI?b. What effect do the expenses associated with the property have on her itemized deductions?
- Colin McGregor and his wife Alice own a house in Kelowna as well as a condo at Big White. They purchased the house in Kelowna in 1997 for $270,000 and the condo in 2012 for $190,000. Both properties have been used exclusively by the McGregors. Early in 2021 the McGregors retired and put both properties up for sale. The condo sold in April for $420,000 and the house sold in July for $750,000. Determine the minimum capital gain that must be reported on the sale of the two properties.Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the current year, Junior: Personally stayed in the home for 22 days. Rented it to his favorite brother at a discount for 10 days. Rented it to his least-favorite brother for 8 days at the full market rate. Rented it to his friend at a discounted rate for 4 days. Rented the home to third parties for 58 days at the market rate. Did repair and maintenance work on the home for 2 days. Marketed the property and made it available for rent for 150 days during the year (but did not rent it out). How many days of personal use and how many days of rental use did Junior experience on the property during the year? Days of personal use: Days of rental use:Tyson owns a condominium near Laguna Beach, California. This year, he incurs the following expenses inconnection with his condo:Insurance $ 1,000Mortgage interest 7,500Property taxes 3,200Repairs and maintenance 800Utilities 1,700Depreciation 5,700During the year, Tyson rented the condo for 100 days, receiving $25,000 of gross income. He personallyused the condo for 60 days. Assume Tyson uses the Tax Court method of allocating expenses to rental useof the property. Tyson itemizes deductions, and the sum of his itemized deduction for non-home businesstaxes and the real property taxes allocated to rental use of the home is less than $10,000. What is Tyson'snet rental income for the year (assume this is not a leap year)?
- . George and Mary Keys are very excited over the news that they are to be parents. Since their graduation from college three years ago, they have purchased a new house and a new car. They owe $130,000 on the house and $8,000 on the car. Their only life insurance consists of $75,000 of term coverage on George and $50,000 on Mary. This coverage is provided by their employers as an employee benefit. Their personal balance sheet shows a net worth (assets minus liabilities) of $80,000. George is rapidly moving up within his company as special projects engineer. His current annual salary is $60,000. In anticipation of the new arrival, George is considering the purchase of additional life insurance. He feels that he needs at least $500,000 in coverage, but his budget for life insurance is somewhat limited. The couple has decided that Mary will stay at home with the new baby and put her career on hold for ten years or so while this baby, and perhaps a later sibling or two, are young. a. As…Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance $ 1,380 690 4,830 1,071 840 Utilities Depreciation 1,140 12,300 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the. condo for 35 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the IRS method of allocating expenses to rental use of the property. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo? b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo? c. If Tamar's basis in the condo at the beginning of the year was $150,000, what is her basis in…Leticia and Stephanie Sims purchased a home in Spokane, Washington, for $400,000. They moved intothe home on February 1 of year 1. They lived in the home as their primary residence until June 30 ofyear 5, when they sold the home for $700,000. a. Assume the same facts as in part (b), except that the Sims live in the home until January of year4, when they purchase a new home and rent out the first home. What amount of realized gainon the sale of the home will the Sims include in taxable income if they sell the first home onJune 30 of year 5 for $700,000? b. Assume the original facts, except that Stephanie moves in with Leticia on March 1 of year 3 andthe couple is married on March 1 of year 4. Under state law, the couple jointly owns Leticia'shome beginning on the date they are married. On December 1 of year 3, Stephanie sells herhome that she lived in before she moved in with Leticia. She excludes the entire $50,000 gain onthe sale on her individual year 3 tax return. What…