Martinez uses the effective-interest method of amortizing bond premium. At the end of the first year, Martinez should report unamortized bond premium of: 1. Question: : (TCO C) Sisco Co. purchased a patent from Thornton Co. for $180,000 on July 1, 2007. Sisco amortizes the patent over a period of 10 years. Expenditures of $92,000 for successful litigation in defense of the patent were paid on July 1, 2011.
* June 2011, Netcrawler granted Michelle an employee stock option, valid until 2013 to acquire up to 1,000 common shares of Netcrawler at $20 per share. * April 30, 2012, Michelle exercised her stock option and acquired 1,000 common shares of Netcrawler at $20. * Michelle already owned 1,000 Netcrawler shares she previously brought from ex-employee for $10,000 * On same day she exercised her option, Michelle sold all 2,000 Netcrawler shares for $70,000 to an arm’s length party. Issue to analyze Michelle will like to know the tax consequence of her buying 1,000 shares of Netcrawler and selling 2,000 shares in the same year. Analysis based on above information Michelle is deemed to have received a benefit under 7(1), an employee acquiring the shares of an employer is said to not be dealing at arm’s length.
During 2011, Z-Mart made installments sales of $300,000 and received payments of $135,000 on those sales. Z-Mart's gross profit on sales is 30%. Required: Prepare the necessary journal entries for 2011. 10 Solutions Multiple Choice Question Number Answer 1 a 2 c 3 b 4 c 5 d 6 c 7 a
The machine is expected to produce 675,000 finished products during its eight-year life. Smith produced 70,000 units in 2012 and 110,000 units during 2013. Required: 1) Determine the amount of depreciation expense to be recorded on the machine for the years 2012 and 2013 under each of the following methods: | |2012 |2013 | |a) Straight-line method |$16,875 |$16,785 | |b) Units of production method
1) Taxpayer Limited paid $10,000 to purchase computer applications software (before apply HST) on January 31, 2013. Taxpayer Limited has a December 31 year-end. What is the maximum tax deduction that Taxpayer Limited can claim in respect of the above expenditure for its taxation year ended December 31, 2013, assuming that Taxpayer is registered to collect and remit HST? 2) CLASS 10.1 ABC Ltd. is a manufacturer with a December 31 year-end. On January 1, 2013, the undepreciated capital cost for Class 10.1 was $22,950.
Question 5. (TCOs 3, 4, 5, & 7) During the past two years, through extensive advertising and improved customer relations, Beech Corporation estimated that it had developed customer goodwill worth $100,000. For the current year, determine the amount of goodwill Beech Corporation may amortize. Question 6. (TCOs 3, 4, 5, & 7) Damien, not a dealer in real estate, sold real estate with a basis of $250,000 for $500,000 cash, a note for $250,000, and the buyer assumed Damien’s mortgage on the property of $125,000.
An annuity pays $24,000 per year for 11 years (first payment one year from today). You feel the appropriate discount rate is 13%. What is the annuity worth to you today? 10. You deposit $16,000 per year for 12 years (deposits at the end of each year) in an account that pays an annual interest rate of 14%.
What was Brady Brothers cash basis income? Cash basis income: $6,000 (cash received) - $5,000 (cash paid) = Answer: $1,000 Question 3: What was Brady Brothers accrual basis income? Accrual basis income: $12,000 (revenue earned) - $8,000 (expenses incurred) = Answer: $4,000 Question 4: Anderson Company’s balance sheet at the end of the year revealed the following information: Clients owe Anderson Company $35,300 for completed projects. Anderson Company owns office equipment totaling $95,500. Anderson Company owns $5,000 of material used on various client projects.
A company leases a machine on January 1, Year One for five years which call for annual payments of $4,000 for the first year and then $10,000 per year after that. The present value of these payments based on a reasonable interest rate of 10 percent is assumed to be $38,000. This lease
SERC focuses on providing creative and innovative solutions for customers rather than academic theories. The college invests in pioneering developments to make offerings customer led and takes a similar approach to internal processes and systems to avoid bureaucracy, focusing always on the end users’ needs.SERC currently has over 1,100 employees working with 37,000+ students. In the academic year 2012/13, 20,836 qualifications were obtained by 10,133 students. 96% of FE students on completion of their course progress to high levels of education or employment. With 5,200+ business client relationships and 2,135 students placed in 1,075 distinct businesses since August 2013, the college has built and maintained a reputable platform in the local community and economy.