Corporations can choose either calendar year or fiscal year. It is not dependent on the tax years of the shareholders. Sole proprietorship and Partnership generally use the tax year of the owner. S-Corp typically has to use the calendar year, unless it can show the IRS why
No special tax rates for capital gains apply to corporations, the entire gain is included in income subject to normal corporate rates. None of these amounts would be reported on her individual return. 36. A. An S-Corp: S-corporations allocate entity income to shareholders, where it is then reported on their individual returns.
Interest payments on the debt are deductible by the corporation while dividends are not deductible. Repayment of the principal is tax free to the creditor, whereas payments made to shareholders for their stock may be considered dividends or taxable redemptions. On the other hand, a corporation does not recognize a gain or loss on the receipt of money or other property in exchange for its stock. Also, it does not recognize income when it receives money or other property as a contribution to
For this reason they are modernizing and automating their manufacturing facilities over 5 years at a cost between $45-$60 million. Gentech ordered a soldering line from Ace Electronics to automate a soldering process at a cost of $3 million. They need a robotic test cell as an essential component of this process. It’s the company’s first attempt at robot automation, and the cell was estimated to cost around $750K. The main competitors before the final bid stage were IAS, Robotic Automation, and UA Corporation.
SUMMARY PROBLEM STATEMENT In the spring of 2003, Mark Taylor, recently promoted to operations manager at Thicketwood Ltd., a custom kitchen cabinet manufacturer in Kitchener, Ontario. The company has to ensure that the plant's capacity would meet the upcoming year's forecasted demand of 2000 kitchen cabinets. But for now, the plant's manufacturing all relies on the handcraft of workers. No matter is the quality or the quantity of productions, cannot satisfied the demand either. Taylor's first plan was to purchase a computer numeric controlled(CNC) router, however, he was not sure whether to purchase a new or used machine.
Provide examples of each in your discussion. week 2 Compare and contrast realization of income for income tax purposes with recognition of income for financial accounting purposes. Gambling losses are miscellaneous deductions not subject to the AGI floor. Explain why this
I calculated an “inventory turnover ratio” which measures the number of times a company sells its inventory during a year. A high rate of turnover indicates easiness in selling inventory; a low rate indicates difficulty. In 2011, the inventory turnover was 6.1. By 2012 the ratio decreased to 5.2. The decrease may be due to a slow ability to turn around merchandise in sales and potentially due to paying a higher cost for goods.
SECTION A1. Discuss specific budgetary items that raise concern in the budget planning. The budgetary areas that raise concern in the budget planning are as follows, Concern #1: Revenue from Sales (income generated from sales) Competition Bikes, Inc. budgeted: $5,247,450 This seems too high based on the decreasing sales trend from Year 7 Net Sales of $5,980,000 to Year 8 Net Sales of only $5,083,000 (Horizontal Analysis) verses Year 9 budgeted Revenue from Sales of $5,247,450. Concern #2: Advertising (expense to run ads) Competition Bikes, Inc. budgeted: $28,412 This seems too high based on the decreasing trend from Year 7 Advertising of $32,760 to Year 8 Advertising of $27,428 (Horizontal Analysis) verses Year 9 budgeted Advertising
The Clean Clothes Laundry Corner Shawn Morris MG585 - Managerial Decisions September 20, 2013 Dr. John Theodore The Clean Clothes Laundry Corner (A) What is Molly’s current monthly volume? Molly’s fixed costs are $1,700 per month, and her variable costs are $0.25 per item, in which Molly is charging $1.10 per clothing item. Molly’s current monthly volume is 2,000 items. The answer was derived by using the following equation: $1,700 ÷ (1.1 – $0.25) = 2000 (B) If Molly purchases the new equipment, how many additional items will she have to dry-clean each month to break even? Using information given in question C, the $16,200 in new machinery will be divided up over 36 months.
Due to the fact that Asian and other foreign textile manufacturers have been exported aggressively and consumer preferences are requiring higher-quality products with minimum defects, like other firms, Aurora tends to produce small amount of yarns produced with minimal period and provide to customized markets. Consequently, Aurora had decreased significantly its costs by reducing $3.9 million of SG&A expenses since 2000 and it was one reason of increasing operating profit and net earnings in 2002. Unfortunately, Aurora’s returned amount from retailers had been increased and the proportion of sales return of Aurora’s one plant named the Hunter reached 1.5% in 2002; thus, the firm’s income has not risen well. Figure 1 illustrates Aurora’s financial ratios by calculating given financial information through Exhibits 1, 2, and 6. The first, the company’s liquidity ratios-current ratio and quick ratio-had been increased smoothly for these four years.