D. $17,241. E. $16,667. 3. Norton Co., a U.S. corporation, sold inventory on December 1, 2011, with payment of 10,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows: What amount of foreign exchange gain or loss should be recorded on December 31?
(e.g., 32.1)) | Ackerman Co. has 10 percent coupon bonds on the market with sixteen years left to maturity. The bonds make annual payments. If the bond currently sells for $944, the YTM is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places.
What is Bob's gross income for 2010? Your Answer: $190,000 All $190,000 (the $140,000 salary and the $50,000 bonus) was available to Bob so the bonus must be recognized in 2010 under the doctrine of constructive receipt. When the bonus is physically received in 2011, the $50,000 will have already been taxed and will therefore not be subject to tax again in
The company records cash collection on November 20. C. The company records unearned revenue on October 15. D. The company records nothing on October 15. 3. On July 1, 2012, Herzog Mining lends cash and accepts a $9,000 note receivable that offers 10% interest and is due in nine months.
In Alexa's situation, all expenses incurred in this year is 28,900 while the passive income is only 20,000. Since we are not sure if Alex qualifies as an active participant at this point, none of the passive loss can be deducted again the passive income. 2. Assuming that Alexa's AGI from other sources is $90,000, what effect does the rental activity have on Alexa's AGI?Alexa makes all decisions with respect to the property. The AGI will be reduced by 8,900.
Case: Lucas Co. Lucas Co. is a manufacturing company that has entered into a lease agreement with Lessor Co. to lease equipment. Lucas has a positive cash flow for several years and is in compliance with all its debt covenants. The lease agreement is signed on December 15, 2004 and the usage of equipment begins on January 1, 2005. Under ASC 840, Leases, the lease is classified as a capital lease with a 5-year lease term. There is no option to negotiate for renewal provided in the lease agreement.
Exercise 4-25 January 2012 -- $5,000 December 2012 -- $4,000 $9,000 of rental income should be reported on the income tax return for 2012. The security deposit is excluded from the calculation. Exercise 4-32 a) Since the title of ownership was transferred to Barbara, she reports this on her tax return. The 1998 basis for the house, $400,000, is still the basis for the home. b) For Arnold, the $18,000 is tax deductible since the title of ownership was transferred to Barbara.
Assume that the bond is a zero coupon bond (i.e., the only payment is the one at maturity) and that company Z has no other debt outstanding. Other relevant parameters are as follows: • • • • • Company Z current asset value: €100 million Total bond issue face value: €80 million (i.e., leverage of 80%) Risk free interest rate: 2% Standard deviation of return on company Z assets: 30% Bond maturity date: one year from
5. (TCO B) In its first four years of operations ending December 31, Year 4, Alder, Inc.'s depreciation for income tax purposes exceeded its depreciation for financial statement purposes. This temporary difference was expected to reverse in Year 5, Year 6, and Year 7. Alder had no other temporary difference. Under U.S. GAAP, Alder's Year 4 balance sheet should
For every $100 earned, $23 went to Uncle Sam. Or, "I had to make $130 to have $100 to spend." That’s a 23-percent tax-inclusive rate. Sales taxes, on the other hand, are quoted tax exclusive: "I bought a $77 shirt and had to pay that same $23 in sales tax." This is a 30-percent sales tax.