Your child will go to a private school starting in 4 years. The tuition for the school is $33210 per year, for 4 years

Your child will go to a private school starting in 4 years. The tuition for the school is $33210 per year, for 4 years starting in year 4. If the interest rate is 4% compounded annually, how much must you deposit today to just be able to fund the tuition?

Asset A pays $1661 per year, for 10 years, starting in year 1. If the interest rate is 6% compounded annually, what is the price of asset A today?

Asset A pays $1661 per year, for 10 years, starting in year 1. If the interest rate is 6% compounded annually, what is the price of asset A today?

If you earn 6% APR (compounded annually) on your investments, how much do you have to invest today to “Fund” a payment of $500 due in 3 years?

If you earn 6% APR (compounded annually) on your investments, how much do you have to invest today to “Fund” a payment of $500 due in 3 years?

You earn 8% APR (compounded annually) on your investments, how much do you have to invest today to “Fund” a payment of $1,000 due in 4 years?

You earn 8% APR (compounded annually) on your investments, how much do you have to invest today to “Fund” a payment of $1,000 due in 4 years?

How much would you have to invest in year 1 and year 2 in an account that earns 5% compounded annually so that you would have $16757 in year 8?

How much would you have to invest in year 1 and year 2 in an account that earns 5% compounded annually so that you would have $16757 in year 8?

You get a loan for $12911 today and will pay back the loan as three equal payments in years 1, 2 and 3. If the interest on the loan is 4%, how big is each payment?

You get a loan for $12911 today and will pay back the loan as three equal payments in years 1, 2 and 3. If the interest on the loan is 4%, how big is each payment?

If you invest $1016 in year 1 and in year 2 in an account that earns 4% compounded annually, how much will you have in 8 years?

If you invest $1016 in year 1 and in year 2 in an account that earns 4% compounded annually, how much will you have in 8 years?

How much would you have to invest today in order to have $10807 in 4 years if you earn 3% on your investments.

How much would you have to invest today in order to have $10807 in 4 years if you earn 3% on your investments.

Why was Miracle chosen to illustrate team building? Illustrate (support your ideas) with information given in your textbook

Why was Miracle chosen to illustrate team building? Illustrate (support your ideas) with information given in your textbook (include page numbers!). Which leadership characteristics were displayed and by whom?

Time Management is one of the most important tools of a successful college student and leaders in general

Time Management is one of the most important tools of a successful college student and leaders in general. You may have heard of Randy Pausch of "The Last Lecture" fame. Before he died, he also gave a lecture about time management. Write at least a one page essay. ESSAY: How could you incorporate Mr. Pausch's advice into your life? What can you do to improve your own time management? What are your impressions of his speech? What does this have to do with leadership?

In “The Allegory of the Cave” Plato’s mainconceptual scheme of the cave is that people see reality as the visible world when reality

In “The Allegory of the Cave” Plato’s mainconceptual scheme of the cave is that people see reality as the visible world when reality really is not the visible world. After reading this selection by Plato, write about the main concept and how you can apply that to your personal leadership.

Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service

Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change- related services represent 75% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 25% of its sales and provides a 60% contribution margin ratio. The company's fixed costs are $15,000,000 (that is, $75,000 per service outlet).

Clyde currently commutes 55 miles to work in the city. He is considering a new assignment in the suburbs on the other

Clyde currently commutes 55 miles to work in the city. He is considering a new assignment in the suburbs on the other side of the city that would increase his commute considerably. He would like to accept the assignment, but he thinks it might require that he move to the other side of the city. Determine if Clyde’s move qualifies for a moving expense deduction and calculate the amount (if any) under the following circumstances: (assuming he is employed for 39 of the next 52 weeks). a. Clyde estimates that unless he moves across town, his new commute would be almost 70 miles. He also estimates the costs of a move as follows: Lodging while searching for an apartment $ 126 Transportation — auto (100 miles @ 19 cents/mile, rounded) 19 Mover's fee (furniture and possessions) 1,500 Meals while en route 35 (i) Does Clyde’s move qualify for a moving expense deduction? (ii) Calculate the amount of deduction. b. Clyde estimates that unless he moves across town, his new commute would be almost 115 miles. He also estimates the cost of a move as follows: Lodging while searching for an apartment $ 126 Transportation — auto (100 miles @ 19 cents/mile, rounded) 19 Mover's fee (furniture and possessions) 1,500 Meals while en route 35 (i) Does Clyde’s move qualify for a moving expense deduction? (ii) Calculate the amount of deduction. c. Clyde estimates that unless he moves across town, his new commute would be almost 150 miles. He also estimates the cost of a move as follows: Lodging while searching for an apartment $ 126 Transportation — auto (100 miles @ 19 cents/mile, rounded) 19 Mover's fee (furniture and possessions) 1,950 Meals while en route 35 (i) Does Clyde’s move qualify for a moving expense deduction? (ii) Calculate the amount of deduction.

Larry purchased an annuity from an insurance company that promises to pay him $10,000 per month for the rest of his life

Larry purchased an annuity from an insurance company that promises to pay him $10,000 per month for the rest of his life. Larry paid $1,051,200 for the annuity. Larry is in good health and he is 72 years old. Larry received the first annuity payment of $10,000 this month. Use the expected number of payments in Exhibit 5-1 for this problem. a. How much of the first payment should Larry include in gross income? b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in gross income? c. What are the tax consequences if Larry dies just after he receives the 100th payment?

Jimmy has fallen on hard times recently. Last year he borrowed $265,000 and added an additional $86,000 of his own

Jimmy has fallen on hard times recently. Last year he borrowed $265,000 and added an additional $86,000 of his own funds to purchase $351,000 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmy’s lender agreed to reduce the loan amount to $238,300. For each of the following independent situations, indicate the amount Jimmy must include in gross income a. The real estate is worth $178,000 and Jimmy has no other assets or liabilities. b. The real estate is worth $245,700 and Jimmy has no other assets or liabilities. c.The real estate is worth $200,200 and Jimmy has $48,300 in other assets but no other liabilities.

Terry was ill for three months and missed work during this period. During his illness, Terry received $9,100 in sick pay

Terry was ill for three months and missed work during this period. During his illness, Terry received $9,100 in sick pay from a disability insurance policy. What amounts are included in Terry’s gross income under the following independent circumstances? a. Terry has disability insurance provided by his employer as a nontaxable fringe benefit. Terry’s employer paid $6,710 in disability premiums for Terry this year. b. Terry paid $6,710 in premiums for his disability insurance this year. c. Terry’s employer paid the $6,710 in premiums for Terry, but Terry elected to have his employer include the $6,710 as compensation on Terry’s W-2. d. Terry has disability insurance whose cost is shared with his employer. Terry’s employer paid $3,600 in disability premiums for Terry this year as a nontaxable fringe benefit, and Terry paid the remaining $3,110 of premiums from his after-tax salary

On Dec 1st of this year, you have been hired as Chief Financial Officer (“CFO”) of a business called Beavers Entertainment Incorporated

On Dec 1st of this year, you have been hired as Chief Financial Officer (“CFO”) of a business called Beavers Entertainment Incorporated (“GoBeavs”). The company plans, organizes, and administers various music festivals, one of which is called Civil War Music Fest (“CWMF”) held at the Reser Stadium. Part of your job as the CFO of the GoBeavsis to record the transactions related to running the festival. You will also be responsible for fixing errors, including unrecorded transactions. The festival will begin Friday, Dec.12thand run through Sunday, Dec.14th. The owner of GoBeavs has contracted with various bands to play at your festival. Among them include Maron5, SOS, KidCudi, Foster the People, and Major Lazer. You will provide a campground adjacent to the main festival as well as other amenities. Items worth noting: - GoBeavs has a 12/31 year-end. - GoBeavs rounds all numbers to the nearest $1. - The General Journal (GJ) is where you will record the journal entry (JE) associated with each individual transaction. Note: not all transactions or events require a JE. - The General Ledger (G/L) is where you post the results of any JE. Each G/L account is in “standard account form” which is a more formal format of a typical T-account. o Note: the headers of the individual G/L accounts do not indicate whether the account is a normal debit or credit balance. Use the information on the trial balance worksheets to determine whether an account has a normal debit or credit balance. - The Adjusting Trial Balance (ATB) and Closing Trail Balance (CTB) reflect the unadjusted, adjusted, and closing balances of each G/L account. You will populate information from the individual G/L accounts into these worksheets which will ultimately help you produce the financial statements for the second phase of the project. - The Financial Statements (F/S) reflect the summary information about GoBeavs. They are prepared using the information from the Adjusted TB. This is part of the second phase of the project. - An example of how to record a JE and post it to the G/L is already in the GJ. - Post JE’s to the G/L at the end of each transaction date to keep the G/L balances updated. - All JEs and G/L postings are to be typed into the document. - You must work through the problems sequentially; do not skip around doing random JEs. Do not “divide-and-conquer”.

This year, Leron and Sheena, married filing jointly, sold their home for $729,000 after all selling

This year, Leron and Sheena, married filing jointly, sold their home for $729,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? a. Leron and Sheena bought the home three years ago for $135,000 and lived in the home until it sold. b. Leron and Sheena bought the home one year ago for $486,000 and lived in the home until it sold. c. Leron and Sheena bought the home five years ago for $298,000. They lived in the home for three years until they decided to buy a smaller home. Their home has been vacant for the past two years.

As treasurer of Toys B Me, you are considering different investment accounts. Assume you have $200,000

As treasurer of Toys B Me, you are considering different investment accounts. Assume you have $200,000 to invest for three years, which of the following investment accounts is the highest yielding? A. 7.47% compounded daily B. 7.48% compounded monthly C. 7.49% compounded quarterly D. 7.50% compounded semi-annually

The original Barbie doll was introduced in 1972 and sold for approximately $3.00. In year 2015, a mint-condition doll

The original Barbie doll was introduced in 1972 and sold for approximately $3.00. In year 2015, a mint-condition doll in its original box would be listed on EBay at approximately $700.00. What average annual rate of return would the seller realize if she had been the original purchaser of this ‘investment’? A. 13.52% B. 14.95% C. 9.71% D. 19.84% E. 10.47%

You are now 25 years old and just beginning to save for your retirement. If your retirement account will earn 7%

You are now 25 years old and just beginning to save for your retirement. If your retirement account will earn 7% per year with monthly compounding, how much do you need to invest each month so that you can retire at 60 years old with $2million in your retirement account? A. $1110 B. $855 C. $960 D. $1305 E. $1260

You are looking at the car that is currently selling at $55,000. Classic Autos is offering free credit

You are looking at the car that is currently selling at $55,000. Classic Autos is offering free credit (i.e. no interest charged on the borrowed amount) on the car. You pay $10,000 down today and then pay the remaining balance at the end of five years. Premium Motors next door does not offer credit, but will give you $15,000 off the list price if you pay cash now. Which dealership is offering a better deal? Assume annual compounding with 8% discount rate. A. Cannot determine without further info B. Classic autos is offering a better deal C. Premium autos is offering a better deal D. Both dealerships' offer value are same

What would be your account balance at the end of 15 years from now if you invest $15,000 today at an account that earns 15% per year?

What would be your account balance at the end of 15 years from now if you invest $15,000 today at an account that earns 15% per year? A. approx. $245,500 B. approx. $122,056 C. approx. $195,500 D. approx. $145,506 E. approx. $225,056

According to the Rule of 72, how long would it take for $2500 to become $80,000?

According to the Rule of 72, how long would it take for $2500 to become $80,000? A. approx. 40 years at 7.2% interest B. approx. 54 years at 12% interest C. approx. 96 years at 6% interest D. approx. 30 years at 14.4% interest E. approx. 50 years at 7.2% interest

You just received an insurance settlement offer related to an accident you had five years ago

You just received an insurance settlement offer related to an accident you had five years ago. The offer gives you a choice of one of the following three offers: • OPTION A: $2000 per end of each month for 5 years • OPTION B: $1400 per beginning of each month for 7 years • OPTION C: $2300 per end of each month for 4 years If you can earn 8% annual rate with monthly compounding on your investments, which option would you choose? A. Option A is the best choice because it has the highest present value. B. You are indifferent between option A and B as they both have equal values and higher than option C. C. You are indifferent to the three options as they are all equal in value. D. Option C is the best choice because it has the highest present value. E. Option B is the best choice because it has the highest present value.

You just settled an insurance claim. The settlement calls for increasing payments over a seven-year period

You just settled an insurance claim. The settlement calls for increasing payments over a seven-year period. The first payment will be paid one year from now in the amount of $8,000. the following payments will increase by 5% annually. What is the value of this settlement to you today if you can earn 7% on your investments? A. 45,785.85 B. 31,063.79 C. 49,491.43 D. 57,811.54 E. 36,408.28

You are scheduled to receive annual payments of $6500 for each of the next 8 years. The discount rate is 6% with annual compounding

You are scheduled to receive annual payments of $6500 for each of the next 8 years. The discount rate is 6% with annual compounding. What is difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year? A. approx. $2482 B. approx. $1325 C. approx. $2422 D. approx. $2021 E. approx. $3033

Kerry and Rob just had their first child, Helene. Being financially responsible parents, they want to start saving for Helene's college

Kerry and Rob just had their first child, Helene. Being financially responsible parents, they want to start saving for Helene's college education so that they will have $355,000 by the time she is 18. Assuming that they have $10,000 in a bank account that pays 5% interest compounded annually today, how much must they add to the account each year to have $355,000 by the time Helene is 18? A. approx. $16,055 B. approx. $10,221 C. approx. $11,946 D. approx. $11,763 E. approx. $18,254

Glenn Robinson recently signed a contract: receiving 12,500 every MONTH for the following 7 years.

Glenn Robinson recently signed a contract: receiving 12,500 every MONTH for the following 7 years. Then, receive 15,000 per MONTH for 2years following. How much is the contract worth in today's dollars, assuming an annual discount rate of 12%? A. approx. 1.21 million B. approx. 980,224 C. approx. 1.47 million D. approx. 755,872 E. approx. 846,246

Suppose you have $2million in your retirement account. If the account earns 4% annual rate with monthly compounding

Suppose you have $2million in your retirement account. If the account earns 4% annual rate with monthly compounding, how much can you take out each month during your 40 years of retirement? A. approx. $6650 B. approx. $4360 C. approx. $8460 D. approx. $8360 E. approx. $4460

You want to have $100,000 in 2 years. If you found an investment account that pays you 9% annual rate with monthly compounding

You want to have $100,000 in 2 years. If you found an investment account that pays you 9% annual rate with monthly compounding, how much do you need to deposit today? A. 84,593 B. 85,168 C. 84,168 D. 83,693 E. 83,583

You invested $10,500 in an account that pays 10 percent simple interest. How much more could you have earned over a 15-year

You invested $10,500 in an account that pays 10 percent simple interest. How much more could you have earned over a 15-year period if the interest had compounded annually? A. $29,001 B. $26,345 C. $17,611 D. $11,749 E. $31,914

Candle & Candle Co. has total sales of $1,500,000 and costs of goods sold $900,000. Depreciation is $43,000 and no further expense

Candle & Candle Co. has total sales of $1,500,000 and costs of goods sold $900,000. Depreciation is $43,000 and no further expense. The firm pays interest expense of $20,000. What is the operating cash flow for Candle & Candle Co. if their tax rate is 20%? A. $281,400 B. $171,800 C. $385,200 D. $492,600

Today's year is 2018. You are planning to invest your tax refunds at an account that pays 10% annual rate with annual compounding

Today's year is 2018. You are planning to invest your tax refunds at an account that pays 10% annual rate with annual compounding. Following are your estimated tax refunds each year: • year 2018: $2,000 • year 2019: $2,500 • year 2020: $2,500 • year 2021: $2,800 How much will you have in your account in year 2021? A. $10,485 B. $11,237 C. $8,253 D. $9,368 E. $12,556

Micro Insuring Low-Income Consumers through Innovative Channels (A) CASE STUDY by Philip M. Parker

Micro Insuring Low-Income Consumers through Innovative Channels (A) CASE STUDY by Philip M. Parker and Marcos Andre Osorio, Harvard Business Review Case Study, Get tutoring of this case. CONTACT US FOR TUTORING AND MENTORING: Send your initial inquiry by submitting the following form. Our representative will respond you as soon as possible.

Micro Insuring Low-Income Consumers through Innovative Channels (B) CASE STUDY by Philip M. Parker and Marcos Andre Osorio

Micro Insuring Low-Income Consumers through Innovative Channels (B) CASE STUDY by Philip M. Parker and Marcos Andre Osorio, Harvard Business Review Case Study, Get tutoring of this case. CONTACT US FOR TUTORING AND MENTORING: Send your initial inquiry by submitting the following form. Our representative will respond you as soon as possible.

Deals on Wheels Inc., Discussion Questions CASE STUDY by William Nemitz, Dawna Travis Dewire, Richard Mandel, Ross Petty

Deals on Wheels Inc., Discussion Questions CASE STUDY by William Nemitz, Dawna Travis Dewire, Richard Mandel, Ross Petty, Harvard Business Review Case Study, Get tutoring of this case. CONTACT US FOR TUTORING AND MENTORING: Send your initial inquiry by submitting the following form. Our representative will respond you as soon as possible.

The Pitfalls of Non-GAAP Metrics CASE STUDY by H. David ShermanS. David Young

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Partners In Health: Costing Primary Care in Haiti CASE STUDY by Robert S. Kaplan and Mahek A. Shah

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Louis files as a single taxpayer. In April of this year he received a $1,190 refund of state income taxes

Louis files as a single taxpayer. In April of this year he received a $1,190 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the standard deduction last year was $6,300 a. Last year Louis claimed itemized deductions of $6,370. Louis’s itemized deductions included state income taxes paid of $2,125. b. Last year Louis had itemized deductions of $4,710 and he chose to claim the standard deduction. Louis’s itemized deductions included state income taxes paid of $2,125. c. Last year Louis claimed itemized deductions of $7,870. Louis’s itemized deductions included state income taxes paid of $3,815.

Matteo, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday

Matteo, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Matteo’s employer called and offered him $550 in overtime pay if he would agree to work over the weekend. Matteo could get his car repaired over the weekend at Autofix for $418. If Matteo works over the weekend, he will have to pay the $418 to have his car repaired but he will earn $550. Assume Matteo pays tax at a flat 15 percent rate. a-1. Strictly considering tax factors, should Matteo work or repair his car if the $418 he must pay to have his car fixed is not deductible? a-2. Given the answer in a-1 above, by how much is Matteo better or worse off? b-1. Strictly considering tax factors, should Matteo work or repair his car if the $418 he must pay to have his car fixed is deductible for AGI? b-2. Given the answer in b-1 above, by how much is Matteo better or worse off?

Through November, Tex has received gross income of $77,500. For December, Tex is considering whether

Through November, Tex has received gross income of $77,500. For December, Tex is considering whether to accept one more work engagement for the year. Engagement 1 will generate $7,490 of revenue at a cost of $4,050, which is deductible for AGI. In contrast, engagement 2 will generate $7,490 of revenue at a cost of $3,440, which is deductible as an itemized deduction. Tex files as a single taxpayer a. Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions other than those generated by engagement 2. b. Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has $4,640 of itemized deductions other than those generated by engagement 2. c. Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has $8,200 of itemized deductions other than those generated by engagement 2.

Jorge and Anita, married taxpayers, earn $90,400 in taxable income and $55,000 in interest from an investment in City

Jorge and Anita, married taxpayers, earn $90,400 in taxable income and $55,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate?

Campbell, a single taxpayer, earns $211,500 in taxable income and $7,500 in interest from an investment in State

Campbell, a single taxpayer, earns $211,500 in taxable income and $7,500 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) a. How much federal tax will she owe? b. What is her average tax rate? c. What is her effective tax rate? d. What is her current marginal tax rate?

This year, Leron and Sheena, married filing jointly, sold their home for $750,000 after all selling costs

This year, Leron and Sheena, married filing jointly, sold their home for $750,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? a. Leron and Sheena bought the home three years ago for $150,000 and lived in the home until it sold. b. Leron and Sheena bought the home one year ago for $600,000 and lived in the home until it sold. c. Leron and Sheena bought the home five years ago for $500,000. They lived in the home for three years until they decided to buy a smaller home. Their home has been vacant for the past two years.

This year, Janelle received $200,000 in life insurance proceeds. Under the following scenarios

This year, Janelle received $200,000 in life insurance proceeds. Under the following scenarios, how much of the $200,000 is taxable? a. Janelle received the proceeds upon the death of her father, Julio. b. Janelle received the $200,000 proceeds because she was diagnosed with colon cancer (life expectancy of six months), and she needed the proceeds for her care. c. The proceeds related to a life insurance policy she purchased for $35,000 from a friend in need. After purchase, Janelle paid annual premiums that total $22,000.

Terry was ill for three months and missed work during this period. During his illness

Terry was ill for three months and missed work during this period. During his illness, Terry received $4,500 in sick pay from a disability insurance policy. What amounts are included in Terry’s gross income under the following independent circumstances? a. Terry has disability insurance provided by his employer as a nontaxable fringe benefit. Terry’s employer paid $2,800 in disability premiums for Terry this year. b. Terry paid $2,800 in premiums for his disability insurance this year. c. Terry’s employer paid the $2,800 in premiums for Terry, but Terry elected to have his employer include the $2,800 as compensation on Terry’s W-2. d. Terry has disability insurance whose cost is shared with his employer. Terry’s employer paid $1,800 in disability premiums for Terry this year as a nontaxable fringe benefit, and Terry paid the remaining $1,000 of premiums from his after-tax salary.

For each of the following situations, indicate how much the taxpayer is required to include in gross income

For each of the following situations, indicate how much the taxpayer is required to include in gross income: a. Steve was awarded a $5,000 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees. How much of scholarship is Steve required to include in his gross income? b. Hal was awarded a $15,000 scholarship to attend State Hotel School. All scholarship students must work 20 hours per week at the School residency during the term. What is the amount of scholarship Hal should include in his gross income?

Fred currently earns $9,000 per month. Fred has been offered the chance to transfer for three to five years

Fred currently earns $9,000 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $10,000 per month if he accepts the assignment. Assume that the maximum foreign earned income exclusion for next year is $101,300. a-1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year? a-2. If Fred’s employer also provides him free housing abroad (cost of $20,000), how much of the $20,000 is excludable from Fred's income? b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year?

Jimmy has fallen on hard times recently. Last year he borrowed $250,000 and added an additional $50,000 of his own

Jimmy has fallen on hard times recently. Last year he borrowed $250,000 and added an additional $50,000 of his own funds to purchase $300,000 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmy’s lender agreed to reduce the loan amount to $230,000. For each of the following independent situations, indicate the amount Jimmy must include in gross income: a. The real estate is worth $175,000 and Jimmy has no other assets or liabilities. b. The real estate is worth $235,000 and Jimmy has no other assets or liabilities. c. The real estate is worth $200,000 and Jimmy has $45,000 in other assets but no other liabilities.

For each of the following independent situations, indicate the amount the taxpayer must include in gross income

For each of the following independent situations, indicate the amount the taxpayer must include in gross income: a. Phil won $500 in the scratch-off state lottery. There is no state income tax. b. Ted won a compact car worth $17,000 in a TV game show. Ted plans to sell the car next year. c. Al Bore won the Nobel Peace Prize of $500,000 this year. Rather than take the prize, Al designated that the entire award should go to Weatherhead Charity, a tax-exempt organization. d. Jerry was awarded $2,500 from his employer, Acme Toons, when he was selected most handsome employee for Valentine’s Day this year. e. Ellen won a $1,000 cash prize in a school essay contest. The school is a tax-exempt entity, and Ellen plans to use the funds to pay her college education. f. Gene won $400 in the office March Madness pool.

Lanny and Shirley are recently divorced and do not live together. Shirley has custody of their child, Art, and Lanny pays Shirley $22,000 per year. All property was divided equally

Lanny and Shirley are recently divorced and do not live together. Shirley has custody of their child, Art, and Lanny pays Shirley $22,000 per year. All property was divided equally. a. How much should Shirley include in income if Lanny’s payments are made in cash but will cease if Shirley dies or remarries? b. How much should Shirley include in income if $12,000 of Lanny’s payments is designated as “nonalimony” in the divorce decree? c. How much should Shirley include in income if Lanny’s payments drop to $15,000 once Art reaches the age of 18?

Larry purchased an annuity from an insurance company that promises to pay him $1,500 per month for the rest of his life

Larry purchased an annuity from an insurance company that promises to pay him $1,500 per month for the rest of his life. Larry paid $170,820 for the annuity. Larry is in good health and he is 72 years old. Larry received the first annuity payment of $1,500 this month. Use the expected number of payments in Exhibit 5-1 for this problem. a. How much of the first payment should Larry include in gross income? b. If Larry lives more than 15 years after purchasing the annuity, how much of each additional payment should he include in gross income? c. What are the tax consequences if Larry dies just after he receives the 100th payment?

Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000

Clyde is a cash-method taxpayer who reports on a calendar-year basis. This year Paylate Corporation has decided to pay Clyde a year-end bonus of $1,000. Determine the amount Clyde should include in his gross income this year under the following circumstances: a. Paylate Corporation wrote the check and put it in his office mail slot on December 30 of this year, but Clyde did not bother to stop by the office to pick it up until after year-end. b. Paylate Corporation mistakenly wrote the check for $100. Clyde received the remaining $900 after year-end. c. Paylate Corporation mailed the check to Clyde before the end of the year, (and it was delivered before year-end). Although Clyde expected the bonus payment, he decided not to collect his mail until after year-end. d. Clyde picked up the check in December, but the check could not be cashed immediately because it was postdated January 10.

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Jasper and Crewella Dahvill were married in year 0. They filed joint tax returns in years 1 and 2

Jasper and Crewella Dahvill were married in year 0. They filed joint tax returns in years 1 and 2. In year 3, their relationship was strained and Jasper insisted on filing a separate tax return. In year 4, the couple divorced. Both Jasper and Crewella filed single tax returns in year 4. In year 5, the IRS audited the couple’s joint year 2 tax return and each spouse’s separate year 3 tax returns. The IRS determined that the year 2 joint return and Crewella’s separate year 3 tax return understated Crewella’s self-employment income causing the joint return year 2 tax liability to be understated by $4,000 and Crewella’s year 3 separate return tax liability to be understated by $6,000. The IRS also assessed penalties and interest on both of these tax returns. Try as it might, the IRS has not been able to locate Crewella, but they have been able to find Jasper. a. What amount of tax can the IRS require Jasper to pay for the Dahvill’s year 2 joint return? b. What amount of tax can the IRS require Jasper to pay for Crewella’s year 3 separate tax return?

In each of the following independent cases, determine the taxpayer’s filing status and the number of personal and dependency

In each of the following independent cases, determine the taxpayer’s filing status and the number of personal and dependency exemptions the taxpayer is allowed to claim. a. Alexandra is a blind widow (her spouse died five years ago) who provides a home for her 18-year-old nephew, Newt. Newt’s parents are dead, and so Newt supports himself. Newt’s gross income is $5,000. b. Bharati supports and maintains a home for her daughter, Daru, and son-in-law, Sam. Sam earned $15,000 and filed a joint return with Daru, who had no income. c. Charlie intended to file a joint return with his spouse, Sally. However, Sally died in December. Charlie has not remarried.

Kano and his wife Hoshi have been married for 10 years and have two children under the age of 1

Kano and his wife Hoshi have been married for 10 years and have two children under the age of 12. The couple has been living apart for the last two years and both children live with Kano. Kano has provided all the means necessary to support himself and his children. Kano and Hoshi do not file a joint return. a. What is Kano’s filing status? b. Assume the original facts except that Kano and Hoshi separated in May of the current year. What is Kano’s filing status? c. Assume the original facts except that Kano and Hoshi separated in November of this year. What is Kano’s filing status? d. Assume the original facts except that Kano’s parents, not Kano, paid more than half of the cost of maintaining the home in which Kano and his children live. What is Kano’s filing status?

Through November, Tex has received gross income of $120,000. For December, Tex is considering whether to accept one more work engagement

Through November, Tex has received gross income of $120,000. For December, Tex is considering whether to accept one more work engagement for the year. Engagement 1 will generate $7,000 of revenue at a cost of $4,000, which is deductible for AGI. In contrast, engagement 2 will generate $7,000 of revenue at a cost of $3,000, which is deductible as an itemized deduction. Tex files as a single taxpayer. a. Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has no itemized deductions other than those generated by engagement 2. b. Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has $4,500 of itemized deductions other than those generated by engagement 2. c. Calculate Tex's taxable income assuming he chooses engagement 1 and assuming he chooses engagement 2. Assume he has $7,000 of itemized deductions other than those generated by engagement 2.

Rick, who is single, has been offered a position as a city landscape consultant. The position pays $125,000

Rick, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in cash wages. Assume Rick files single and is entitled to one personal exemption. Rick deducts the standard deduction instead of itemized deductions. (use the tax rate schedules.) a. What is the amount of Rick’s after-tax compensation (ignore payroll taxes)? b-1. Suppose Rick receives a competing job offer of $120,000 in cash compensation and nontaxable (excluded) benefits worth $4,000. What is the amount of Rick’s after-tax compensation for the competing offer?

Jamareo has found a “favorable” authority directly on point for his tax question

Jamareo has found a “favorable” authority directly on point for his tax question. a. If the authority is an administrative authority, which specific type of authority would he prefer to answer his question? b. Which administrative authority would he least prefer to answer his question?

Randy deducted a high level of itemized deductions two years ago relative to his income level

Randy deducted a high level of itemized deductions two years ago relative to his income level. He recently received an IRS notice requesting documentation for his itemized deductions. What audit procedure likely identified his tax return for audit?

Yong’s tax return was audited because he calculated his tax liability incorrectly. What IRS audit procedure identified his tax return for audit?

Yong’s tax return was audited because he calculated his tax liability incorrectly. What IRS audit procedure identified his tax return for audit?

Campbell’s tax return was audited because she failed to report interest she earned on her tax return

Campbell’s tax return was audited because she failed to report interest she earned on her tax return. What IRS audit selection method identified her tax return?

Paula could not reach an agreement with the IRS at her appeals conference and has just received a 90-day letter

Paula could not reach an agreement with the IRS at her appeals conference and has just received a 90-day letter. If she wants to litigate the issue but does not have sufficient cash to pay the proposed deficiency, what is her best court choice?

Latoya filed her tax return on February 10 this year. When will the statute of limitations expire for this tax return?

Latoya filed her tax return on February 10 this year. When will the statute of limitations expire for this tax return?

Shane has never filed a tax return despite earning excessive sums of money as a gambler. When does the statute of limitations

Shane has never filed a tax return despite earning excessive sums of money as a gambler. When does the statute of limitations expire for the years in which Shane has not filed a tax return?

Jamarcus, a full-time student, earned $2,500 this year from a summer job. He had no other income this year and

Jamarcus, a full-time student, earned $2,500 this year from a summer job. He had no other income this year and will have zero federal income tax liability this year. His employer withheld $300 of federal income tax from his summer pay. Is Jamarcus required to file a tax return? Should Jamarcus file a tax return?

The estate of Monique Chablis earned $450 of income this year. Is the estate required to file an income tax return?

The estate of Monique Chablis earned $450 of income this year. Is the estate required to file an income tax return?

Molto Stancha Corporation had zero earnings this fiscal year; in fact, they lost money. Must they file a tax return?

Molto Stancha Corporation had zero earnings this fiscal year; in fact, they lost money. Must they file a tax return?

Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment

Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate?

Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin

Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate?

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule) a. If Campbell earns an additional $15,000 of taxable income, what is her marginal tax rate on this income? b. What is her marginal rate if, instead, she had $15,000 of additional deductions?

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds

Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) a. How much federal tax will she owe? b. What is her average tax rate? c. What is her effective tax rate? d. What is her current marginal tax rate?

huck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule..) a. How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his current marginal tax rate?

Refer to Table 23.2 in the text to answer this question. Suppose you purchase the June 2014 put option

Refer to Table 23.2 in the text to answer this question. Suppose you purchase the June 2014 put option on corn futures with a strike price of $5.10. Assume your purchase was at the last price. What is the total cost? Suppose the price of corn futures is $4.91 per bushel at expiration of the option contract. What is your net profit or loss from this position? What if corn futures prices are $5.18 per bushel at expiration?

Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $590,000

Marcelino Co.'s March 31 inventory of raw materials is $86,000. Raw materials purchases in April are $590,000, and factory payroll cost in April is $380,000. Overhead costs incurred in April are: indirect materials, $57,000; indirect labor, $25,000; factory rent, $37,000; factory utilities, $21,000; and factory equipment depreciation, $61,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $665,000 cash in April. Costs of the three jobs worked on in April follow. Job 306 Job 307 Job 308 Balances on March 31 Direct materials $ 28,000 $ 36,000 Direct labor 22,000 16,000 Applied overhead 11,000 8,000 Costs during April Direct materials 131,000 205,000 $ 105,000 Direct labor 103,000 150,000 102,000 Applied overhead ? ? ? Status on April 30 Finished (sold) Finished (unsold) In process Show how to present the inventories on the April 30 balance sheet. Required: 1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). a. Materials purchases (on credit). b. Direct materials used in production. c. Direct labor paid and assigned to Work in Process Inventory. d. Indirect labor paid and assigned to Factory Overhead. e. Overhead costs applied to Work in Process Inventory. f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) g. Transfer of Jobs 306 and 307 to Finished Goods Inventory. h. Cost of goods sold for Job 306. i. Revenue from the sale of Job 306. j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material. 2. Prepare journal entries for the month of April to record the above transactions. 3. Prepare a schedule of cost of goods manufactured. 4.1 Compute gross profit for April. 4.2 Show how to present the inventories on the April 30 balance sheet.

In December 2014, Infodeo established its predetermined overhead rate for movies produced during year 2015 by using the following cost

In December 2014, Infodeo established its predetermined overhead rate for movies produced during year 2015 by using the following cost predictions: overhead costs, $2,025,000,and direct labor costs, $450,000. At year-end 2015, the company’s records show that actual overhead costs for the year are $2,431,600. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released $ 500,000 Movies still in production 43,000 Total actual direct labor cost $ 543,000 1. Determine the predetermined overhead rate for year 2015. 2&3. Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.

In December 2014, Shire Computer’s management establishes the 2015 predetermined overhead rate based on direct labor cost. The information used in

In December 2014, Shire Computer’s management establishes the 2015 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $864,200 of overhead costs and $580,000 of direct labor cost in year 2015. During March 2015, Shire began and completed Job No. 13-56. 1. What is the predetermined overhead rate for year 2015? 2. Compute the job cost sheet

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs. Job 102 Job 103 Job 104 Direct materials $ 41,000 $ 59,000 $ 57,000 Direct labor 15,000 25,400 44,000 Overhead applied 5,850 9,906 17,160 Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $8,000; direct labor, $3,100; and overhead, $1,209. Jobs 103 and 104 are started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 are finished in June, and Job 104 is expected to be finished in July. No raw materials are used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.) 1&2. Complete the given below table to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs? 3. What predetermined overhead rate is used during June? 4. How much total cost is transferred to finished goods during June?

Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $508

Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $508 each. Costs 1. Plastic for casing—$21,000 2. Wages of assembly workers—$90,000. 3. Property taxes on factory—$5,000 4. Accounting staff salaries—$34,000 5. Drum stands (1,000 stands purchased)—$28,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$180,000 8. Annual flat fee for factory maintenance service—$14,000 9. Sales commissions—$16 per unit 10. Machinery depreciation, straight-line—$43,000 Required: 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. 2. Calculate the manufacturing cost per drum set.

Given the following selected account balances of Delray Mfg

Given the following selected account balances of Delray Mfg. Sales $ 1,053,000 Raw materials inventory, Dec. 31, 2014 41,000 Work in process inventory, Dec. 31, 2014 56,600 Finished goods inventory, Dec. 31, 2014 68,600 Raw materials purchases 189,300 Direct labor 227,000 Factory computer supplies used 19,600 Indirect labor 58,000 Repairs—Factory equipment 5,250 Rent cost of factory building 53,000 Advertising expense 90,000 General and administrative expenses 131,000 Raw materials inventory, Dec. 31, 2015 44,300 Work in process inventory, Dec. 31, 2015 41,000 Finished goods inventory, Dec. 31, 2015 65,900 Prepare its schedule of cost of goods manufactured for the year ended on December 31, 2015.

Simon Company's year-end balance sheets follow

Simon Company's year-end balance sheets follow. At December 31 2015 2014 2013 Assets Cash $ 29,083 $ 33,996 $ 35,766 Accounts receivable, net 87,698 58,892 48,161 Merchandise inventory 104,911 77,027 50,285 Prepaid expenses 9,271 9,014 3,935 Plant assets, net 266,955 250,311 219,553 Total assets $ 497,918 $ 429,240 $ 357,700 Liabilities and Equity Accounts payable $ 125,221 $ 70,365 $ 46,744 Long-term notes payable secured by mortgages on plant assets 95,481 95,763 77,471 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 113,716 99,612 69,985 Total liabilities and equity $ 497,918 $ 429,240 $ 357,700 Express the balance sheets in common-size percents.

Compute the total manufacturing cost for a manufacturer with the following information for the month

Compute the total manufacturing cost for a manufacturer with the following information for the month. Raw materials purchased $ 40,000 Raw materials used in production 64,250 Direct labor used 16,800 Factory supervisor salary 10,000 Salesperson commissions 9,200 Depreciation expense—Factory building 3,800 Depreciation expense—Delivery equipment 3,600 Indirect materials 1,550

In December 2014, Shire Computer’s management establishes the 2015 predetermined overhead rate based on direct labor cost. The information used in

In December 2014, Shire Computer’s management establishes the 2015 predetermined overhead rate based on direct labor cost. The information used in setting this rate includes estimates that the company will incur $881,600 of overhead costs and $580,000 of direct labor cost in year 2015. During March 2015, Shire began and completed Job No. 13-56. 1. What is the predetermined overhead rate for year 2015? 2. Compute the job cost sheet

TechPro offers instructional courses in e-commerce website design. The company holds classes in a building that it owns

Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department

Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for the current year follows. ATVs sell for $3,400 each. Variable selling expenses are $260 per ATV. The remaining selling expenses are fixed. Administrative expenses are 40% variable and 60% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,920 each. POLARIX Income Statement—Consumer ATV Department For Year Ended December 31, 2015 Sales $ 656,200 Cost of goods sold 370,560 Gross margin 285,640 Operating expenses Selling expenses $ 175,000 Administrative expenses 40,500 215,500 Net income $ 70,140 Required: 1. Prepare an income statement for this current year using the contribution margin format.

Company A is a manufacturer with current sales of $3,000,000 and a 60% contribution margin. Its fixed costs equal $1,320,000. Company B is a

Company A is a manufacturer with current sales of $3,000,000 and a 60% contribution margin. Its fixed costs equal $1,320,000. Company B is a consulting firm with current service revenues of $3,100,000 and a 25% contribution margin. Its fixed costs equal $270,000. Compute the degree of operating leverage (DOL) for each company. Identify which company benefits more from a 20% increase in sales.

Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 9,900 units

Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 9,900 units HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,900 units at $239 each) $ 2,366,100 Variable costs (9,900 units at $190 each) 1,881,000 Contribution margin $ 485,100 Fixed costs 326,700 Pretax income $ 158,400 Assume the company is considering investing in a new machine that will increase its fixed costs by $42,000 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2016 assuming the company purchases this machine.

Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit

Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The company’s annual fixed costs are $432,000. Management targets an annual pretax income of $750,000. 1) Compute the unit sales to earn the target income. 2) Compute the dollar sales to earn the target income.

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Quantity Components Changeover $ 454,000 Number of batches 710 Machining 310,000 Machine hours 8,590 Setups 230,000 Number of setups 180 $ 994,000 Finishing Welding $ 182,000 Welding hours 4,700 Inspecting 233,000 Number of inspections 790 Rework 64,000 Rework orders 170 $ 479,000 Support Purchasing $ 133,000 Purchase orders 483 Providing space 34,500 Number of units 5,150 Providing utilities 63,000 Number of units 5,150 $ 230,500 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,100 3,050 Welding hours 1,200 3,500 Batches 355 355 Number of inspections 470 320 Machine hours 3,250 5,340 Setups 90 90 Rework orders 100 70 Purchase orders 322 161 Required: 1. Determine departmental overhead rates and compute the overhead cost per unit for each product line. Base your overhead assignment for the components department on machine hours. Use welding hours to assign overhead costs to the finishing department. Assign costs to the support department based on number of purchase orders 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $160 for Model 212. 3. If the market price for Model 145 is $1,025 and the market price for Model 212 is $270, determine the profit or loss per unit for each model