Carol M. Read, et al. v. Commissioner Facts: Carol Read and William Read, who were married, owned Mulberry Motor Parts, Inc. (MMP), a corporation in the business of selling automobile parts. In 1985, Ms. Read filed a petition for dissolution of her marriage to Mr. Read. Carol Read owned 48% and William Read owned 52% of all voting and nonvoting stock of MMP when Ms. Read filed the divorce petition. Based on the divorce agreement, Mr. Read had the options to require Ms. Read to transfer her stock directly to him or to the corporation at his election.
On March 30, 2009 they decide to resell 50,000 shares at a price of $13 per share. There is a current balance in the APIC-share repurchase account of $40,000. Prepare the necessary journal entries to record these transactions if Tom, Inc. classifies the repurchase as treasury stock. Original issue
as required by EESA, Treasury also received warrants to purchase common stock of Bank of American at a strike price of $13.30 per share and with an aggregate value of $2 billion. Bank of America will be prohibited from paying dividends on common stock in excess of $0.1 per share per quarter for three years without the consent of Treasury. 3.On September 14, 2008, Bank of America announced its intention to purchase Merrill Lynch & Co., Inc. in an all-stock deal worth approximately $50 billion. Merrill Lynch was at the time within days of collapse, and the acquisition effectively saved Merrill from bankruptcy. [35] Around the same time Bank of America was reportedly also in talks to purchase Lehman Brothers, however a lack of government guarantees caused the bank to abandon talks with Lehman.
d) $400,000 INCORRECT 8. What is the class life for nonresidential buildings purchased after May 12, 1993? c) 27.5 years INCORRECT 9. Greg and Joyce have an adjustable rate mortgage on their home. What is the key feature of this type of loan?
Sept. 1 | Purchased inventory from Orion Company on account for $50,000. Darby records purchases gross and uses a periodic inventory system. | Oct. 1 | Issued a $50,000, 12-month, 8% note to Orion in payment of account. | Oct. 1 | Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $81,000 note. | * Instructions (a) Prepare journal entries for the selected transactions above.
BIS 155 Lab 6 of 7: Day Care Center Purchase here http://chosecourses.com/BIS%20155/bis-155-lab-6-of-7-day-care-center Product Description Your friend, Jane Morales, is considering opening a Day Care Center. She has started compiling her assumptions and putting together an Income Statement. She has determined that she must make at least $75,000 profit per year in order to start the business. She has asked you to analyze her Income Statement and help her determine whether it is viable for her to start this business. You have agreed to help her complete her Income Statement and to perform What-If analysis to help her look at her potential profitability.
Problems (p.112) (3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Ans: DSO (Days Sales Outstanding) = Accounts Receivables/Average Sales per day Accounts Receivables = 20 * 20000 = $400,000 (3-2) Debt Ratio Vigo Vacations has an equity multiplier of 2.5.
40 miles * 16.5¢/mile=$6.60 per trip * 3 trips/wk=$19.80/wk * 52wks/yr=$1029.60 per year in tax deductible transportation costs. 52. On April 1, 2010, Paul sold a house to Amy. The property tax on the house, which is based on a calendar year, was due September 1, 2010. Amy paid the full amount of property tax of $2,500.
v. Commissioner, Moline Properties corporate identity and status was called into question. Moline Properties was originally incorporated by Mr. Thompson who conveyed property to Moline Properties and in return received the entirety of the available stock making Mr. Thompson the sole shareholder. Mr. Thompson owned other real property titles separate from Moline Properties. In 1934, 1935, and 1936 the mortgages representing the entirety of the corporation’s assets were paid off through the sale of the three associated parcels of land, one sold each year. The proceeds of the sale were deposited directly into Mr. Thompson’s bank account.
Accounting and legal fees $150,000 Advertising $125,000 Freight-out $65,000 Interest $80,000 Loss on sale of long-term investments $35,000 Officers’ salaries $200,000 Rent for office space $160,000 Sales salaries and commissions $110,000 One half of the rented premises are occupied by the sales department. How much of the expenses listed above should be included in Perry’s general and administrative expenses for 201X? (TCO C) An income statement shows “income before income taxes and extraordinary items” in the amount of $3,000,000. The income taxes payable for the year are $1,500,000, including $260,000 that is applicable to an extraordinary gain. Thus, what is the “income before extraordinary items”?