Answer: $235,000 6. Corporation P owns 85 percent of Corporation S1; Corporation S1 owns 60 percent of Corporation S2; Corporation S2 owns 90 percent of S3; Corporation S3 owns 60 percent of Corporation S4 and 15 percent of Corporation S2; Corporation S4 owns 100 percent of Corporation S5. Identify the consolidated group of corporations. Answer: P, S1, S2, S3, S4, S5 7. Corporation P files a consolidated return with Corporation S. In preparing a consolidated return, their accountant finds the following: Separate taxable income (loss) P= $500,000 S= ($200,000) Capital gain (loss)
To: Giant Company President From: Chief Operating Officer (COO) of Giant Re: Review of Contracts Date: September 12, 2011 QUESTIONS PRESENTED My review of Giant’s contracts finding cost-saving actions using price as instructed and addressed to the Chief Operating Officer of Giant Candy Company (Giant) Giant respectfully. I. Can contracting parties Giant terminate Little Company’s (Little) contract? A promise that places no constraints on the promisor's freedom of choice is called an “illusory promise” and does not provide consideration for another party's promise. A.
| 0.75 | | | | | General Feedback: | Expected return | 40.0% | Standard deviation | 30.0% | Coefficient of variation = std dev / expected return = | 0.75 | | | | Score: | 0/10 | | 2. Chapter 8 - Risk and Rates of Return Question MC #119 Bill Dukes has $100,000 invested in a 2-stock portfolio.
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. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debtratio? Ans: Equity Multiplier = 2.5 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.5 = 0.40 Debt Ratio + Equity Ratio = 1 Therefore Debt Ratio = 1 - Equity Ratio = 1 - 0.40 = 0.60 = 60% (3-3) Market/Book Ratio Winston Washers’s stock price is $75 per share. Winston has $10 billion in total assets.
4. Which of the following includes operating income in the ratio’s numerator? A. Times interest earned B. Debt-to-equity ratio C. Acid-test ratio D. Gross margin percentage Use the following information for the next 2 questions. Tedi Co. had net sales of $1,000,000; inventory of $230,000; cost of goods sold of $700,000; average accounts receivable of $25,000; and average total assets of $750,000.
[3] http://www.irs.gov/businesses/small/article/0,,id=146335,00.html It is important to determine if the taxpayer martially participates because this classifies the income as active or passive. Passive activity losses are non-deductable from active and portfolio income. This is why it is important to determine if the taxpayer martially participates in the business activity. PROBLEMS: 7-46) The $30,000 loss is considered a passive loss and can only be deducted against passive income, it is therefore suspended and carried forward to future years to offset potential passive income in those years. Mary has no martially participation in the rental activity, therefore the loss is considered
If this is true, it is almost impossible that as of December 31, Apollo owes ARRI nothing. The investigator needs to collect canceled checks to verify if Apollo Shoes has truly paid this invoice. Because the date is at the end of the year, the investigator may want to review Apollo’s outstanding checks. If Apollo has not paid this invoice, they are
Also the CPA firm cannot perform any more consulting or accounting services for the audit client since it is not allowed under the PCAOB audit standards. b. The auditors would have to complete the registration of the company with the SEC via Form S-1, file quarterly financials on Form 10-Q, and then file the annual fiscal year's financial statements via Form 10K in addition to the annual audited financial statements. Problem 3-23 a. 2) b.
The tax rate is 40 percent. a. what is the initial investment outlay? b. The company spent and expensed $50,000 on research related to the project last year. Would this change your answer?
"According to act-utilitarianism, it is the value of the consequences of the particular act that counts when determining whether the act is right. Bentham's theory is act-utilitarian, and so is that of J.J.C. Smart. One objection to act-utilitarianism is that it seems to be ‘too permissive’, capable of justifying any crime, and even making it morally obligatory, if only the value of the particular consequences of the particular act is great enough. Another objection is that act-utilitarianism seems better in theory than in practice, since we hardly ever have the time and the knowledge to predict the consequences of an act, assess their value, and make comparisons with possible alternative acts.