They were given a 10% discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stine estimates that the machinery will have a useful life of 10 years and a residual value of $20,000. If Stine uses straight-line depreciation, annual depreciation will be • $3,760. • $4,072.
(Points: 5) Accrual of estimated operating expenses Revenue collected in advance Prepaid operating expenses Accumulated depreciation. 3. (TCO 1) For its first year of operations Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $300,000 minus permanent difference 15,000 equals 285000 minus temporay difference 20000 equals taxable income $265000 Tringali's tax rate is 40%. What should Tringali report as its deferred income tax liability as of the end of its first year of operations? (Points: 5) $35,000.
2. Question 2: During the first month of operation, Brady Brothers made sales to customers totaling $12,000 but received only $6,000 from customers in cash. Brady Brothers incurred $8,000 for operating expenses but only paid $5,000 in cash for those expenses. What was Brady Brothers cash basis income? Cash-based income: Revenues Received $6,000 Less expenses paid $5,000 = Income $1,000 3.
Yes Yes b. No Yes c. Yes No d. No No 6. In 2010, Linz Corporation reported an extraordinary loss of $1,000,000, net of tax. It declared and paid preferred stock dividends of $100,000 and common stock dividends of $300,000.
If Casper decided to take out a loan that charges 20% APR over one year for the amount of £2000 over 12 months he would expect to pay £183 per month for 12 months with interest of £205. (candid money calculator accessed 28/7/11) If Casper makes the decision to use his credit card and he borrowed £2000 over 2 years at 15% APR his total monthly payments would be £96.08 per month, the interest would calculate to £306 this would be a total repayment of £2306 over 2 years. (candid money calculator accessed 28/7/11) Comparing the ‘loan’ to the credit card loan, Casper would pay his debt back quicker but at nearly double the price of the credit card loan, the advantage the credit card loan has, his monthly installments will be half of what the ‘loan’ but at 2 years rather than 1 year. Question 2 In question 2 of this essay I shall attempt to answer questions on expenditure and budgeting, giving a brief example from the study of the personal finance course book DB123 and the transcript of the dvd accessed on the Open University website.
Problem: P22-6, Accounting Change and Error Analysis Course: AC557 Intermediate Accounting III "On December 31, 2010, before the books were closed, the management and accountants of Madrasa Inc. made the following determinations about three depreciable assets." 1. Depreciable asset A was purchased January 2, 2007. It originally cost $540,000 and, for depreciation purposes, the straight-line method was originally chosen. The asset was originally expected to be useful for 10 years and have a zero salvage value.
Answer: she paid $8000 over the life of the loan. 100*$500=$50,000 - $10,000down = $40,000 borrowed 40,000 * 5 * .04 = $8000 5) Using the information in the last question, what is the periodic payment for year 8 of the loan? Note: Sally purchased an additional 100 cows. She paid $500/cow. She paid $10,000 down and took out a 5 year loan with interest calculated using add-on interest for the rest of the cost of the land.
Consult the IRS Circular E for federal payroll tax regulations and your state taxation agency (see Resources) for state payroll tax regulations. Withhold federal income tax based on the Circular E’s withholding tax tables and the employee’s W-4 form. Withhold Social Security tax at 6.2 percent of gross income, up to $106,800 for the year. Withhold Medicare tax at 1.45 percent. Consult your state withholding tax tables (see Resources) and the employee’s state income tax form to determine state income tax withholding.
Mr. Flint retired as president of the Color Tile Company but is currently on a consulting contract for $45,000 per year for the next 10 years. a. If Mr. Flint’s opportunity cost (potential return) is 10%, what is the present value of his consulting contract? b. Assuming that Mr. Flint will not retire for two more years and will not start to receive his 10 payments until the end of the third
Acct 152 Mini Quiz Chpt 11 ------------------------------ Lowe Company sells 4,000 units of its product for $500 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $50 per unit. In the year of sale, warranty contracts are honored on 80 units for a total cost of $4,000. 1.