Sumner sold equipment that it u
Q: The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $…
A: A partnership in accounting is a type of business entity in which two or more individuals own and…
Q: Complete the following table. (Round your answers to two decimal places.) Direct materials…
A: The cost can be controlled using the variance analysis. The variance analysis is the cost accounting…
Q: Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit and…
A: The break-even sales are calculated as fixed costs divided by contribution margin ratio. The…
Q: Accounting ABC Corporation had the following income statement information for the year: Sales…
A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…
Q: Problem 8-59 (Static) Prepare a Production Cost Report: Weighted-Average Method (LO 8-3, 4) Mercier…
A: Under the weighted-average method of process costing, equivalent units are calculated considering…
Q: Awla Ltd. sells two products as follows: Product A Product B Units sold 2,625 3,500 Selling price…
A: Break-even is the point at which the entity is in a situation of no profit and no loss. It is the…
Q: Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries.…
A: Activity-based costing can provide a more accurate picture of the costs incurred by different…
Q: declared at the end of the year, and 660 additional shares of common stock ($0.10 par value per…
A: Balance sheet is one of financial statements which includes balance sheet, income statement and cash…
Q: Company ABC purchased a new machinery for $50,000. The machinery is expected to have a useful life…
A: DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal wear…
Q: Direct materials Direct labor Variable manufacturing overhead (based on direct labor-hours) $ 47,362…
A: Lets understand the basics. Material price variance is a variance between the rate at which material…
Q: Tim, a single taxpayer, operates a business as a single-member LLC. In 2022, his LLC reports…
A: An excess business loss is the amount by which the total deductions attributable to all of your…
Q: The following data was taken from the books as at December 31 of Blossom Inc.: $14,400 Common shares…
A: Gross profit = Sales - cost of goods sold Net income = Income before tax - income tax expenses
Q: Tom Yuppy, a wealthy investor, paid $52,000 for 1,300 shares of $10 par common stock issued to him…
A: The issue of the shares means an activity in which the company raises capital by selling the smaller…
Q: Required information [The following information applies to the questions displayed below.] Delph…
A: The pre-determined overhead rate is calculated as estimated overhead costs divided by estimated…
Q: Entity A, a VAT-registered business in the Philippines, had total sales of $3,000,000 and total…
A: The value contributed at each stage of the production of goods or services is subject to a…
Q: Required information [The following information applies to the questions displayed below.] Matt and…
A: Given, Total salary = ($ 64,000 +$ 21,000) = $ 85,000 Net Short Term Capital Gains = ($ 9,000 - $…
Q: During its first year of operations, Whispering Winds Corp. had these transactions pertaining to its…
A: To keep track of the business transactions, it is necessary for the business entities to record the…
Q: Current Attempt in Progress A tabular analysis of the transactions made during August 2022 by…
A: Stockholders Equity is calculated by subtracting total liabilities from total assets or…
Q: Required information [The following information applies to the questions displayed below.] Selected…
A: Income Statement - An income Statement is a financial statement that includes Revenue earned and…
Q: Problem 11-25 (Algo) [LO 11-6] m 2020, NB Incorporated's federal taxable income was $268,000.…
A: Prior year (2020) taxable income = $268,000 Thus 2020 Tax liability = 21% of $268,000 = $56,820
Q: If the value of an item can be measured and reasonably determined, this item can be recognized in…
A: An item can be recognized in the financial statement if it satisfies certain specified condition.…
Q: The following segmented annual income statement is for Quality Bikes LLC. If allocated fixed costs…
A: A fixed cost that is assigned to a certain area or product is called as allocated fixed cost.…
Q: 1. Determine the desired postadjustment balance in allowance for doubtful accounts. 2. Determine the…
A: The most common method for estimating bad debts allowance is the aging of accounts receivable…
Q: Required: 1. Determine the activity rates based on practical capacity and the cost of idle capacity…
A: Coffee Bean Incorporated (CBI) has two coffee products - Mona Loa and Malaysian CBI’s controller,…
Q: Whirly Corporation's contribution format income statement for the most recent month is shown below:…
A: 1.Revised net operating income = net operating income + (additional units ×contribution margin)
Q: NewCorp offers its employees a 401(k) plan. The company matches employee contributions at 50% up to…
A: Given, Annual salary = $ 61,575 Need $ 250,000 i n 401(k) when he retires in 32 years.
Q: Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions)…
A: Shareholder's equity is the amount which represents the stake of the shareholders in the entity. It…
Q: Pension data for Barry Financial Services Inc. include the following: Discount rate, 7% Expected…
A: Pension expense can be defined as the expenses related to the liabilities for pension payable to…
Q: On July 31, 2014, the following data were accumulated to assist the accountant in prepar- ing the…
A: Adjusting entries are those which are reported in the books at the end of the period so as to adjust…
Q: Exercise 24-3 (Algo) Payback period and unequal cash flows LO P1 Beyer Company is considering buying…
A: Payback period :— It is the time period in years which is required to recover all the cash outflows…
Q: The adjusted trial balance data given below is from the Morgan Company's worksheet for the year…
A: Income statement is a important part of financial statement.In it we show the expenses and income…
Q: Gant Company purchased 30 percent of the outstanding shares of Temp Company for $83,000 on January…
A: The accounting approach of treating investments in affiliated corporations is known as the equity…
Q: While assisting the accounting department with completing the current year's financial statements,…
A: Contingent liability is Present obligation arising from past event which cannot be recognise…
Q: Here is Flounder Company's portfolio of long-term stock investments at December 31, 2021, the end of…
A: For the purpose of maintaining track of commercial transactions, the business entities record them…
Q: Farmer Sheffield Industries Inc. is in the business of producing organic foods for sale to…
A: Journal entry is the necessary requirement of the business.Accounting starts with recording…
Q: A- An example of a permanent account is : a) Withdrawal b) Revenues c) Sales expenses d) Merchandise…
A: A permanent account refers to such accounts which does not close at the end of the accounting period…
Q: Crane Company has the following budgeted costs for the next year: Shop employees' wages and benefits…
A: Given, Parts manager's salary and benefits 45000 Office employee's salary and benefits 15000…
Q: roup Company bills a client $69,000 for services provided and agrees to accept the following three…
A: The journal entries are prepared to record the transactions on regular basis. The T-accounts are…
Q: Given below are the Statements of Comprehensive Income of Do Bhd and of its subsidiary Ra Bhd for…
A: 1. Identifying the subsidiaries: Determining which entities should be included in the consolidation…
Q: Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet…
A: Average operating assets=Beginning total operating assets+Ending total operating assets2 Margin=Net…
Q: Bramble Frame Camera Shop uses the lower-of-cost-or-net realizable value basis for its inventory.…
A: Lower cost is the method to calculate the ending inventory balance. It is the responsibility of the…
Q: Calculating Taxes Owed on Manuel's Investment Year 1 Year 2 Dividends: Capital Gains: Dividends:…
A: It has been given in the question that Manuel falls in the tax bracket of 35% and for it the long…
Q: On January 1, 2021, Eagle Company borrows $30,000 cash by signing a four year, 7% installment note.…
A: A journal is made to record all business transactions. All the financial transactions are recorded…
Q: Chaz Corporation has taxable income in 2022 of $312,200 for purposes of computing the §179 expense…
A: Business organizations are required to charge the depreciation expense so that the assets are shown…
Q: Exercise 1-4 (Algo) Fixed and Variable Cost Behavior [LO1-4] Espresso Express operates a number of…
A: Fixed cost will remain constant in total. Variable cost will will remain constant per unit.
Q: Branson Mailbox produces decorative mailboxes. The company's average cost per unit is $22.43 when it…
A: Variable cost is the cost which changes with change in production volume and it is relevant in…
Q: South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET…
A: As per our policy,we are allowed to answer only first 3 sub parts of the question. Still i am…
Q: Salespeople who earn more than a particular amount get incentives. Who gets a bonus and how much?…
A: Yes, Excel can be used to calculate incentives for salespeople based on their earnings. You can use…
Q: In the short run, which of the following is most likely a variable cost? a) Vehicle fleet loan…
A: Lets understand the basics. Costs are mainly divided into two types which are, (1) Variable cost…
Q: Ames Trading Company has the following products in its ending inventory. Cost per Market per Unit…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…
11.
Subject :- Accounting
Sumner sold equipment that it uses in its business for $30,800. Sumner bought the equipment a few years ago for $79,600 and has claimed $39,800 of
Step by step
Solved in 3 steps
- Fareed sells a piece of equipment used in a business for $31,500 during 2021. The equipment was purchased on July 1, 2019, at a cost of $22,000. Fareed has taken $6,600 of depreciation on the equipment. What are the amount and classification of the gain on the sale by Fareed? Group of answer choices $9,500 Section 1231 gain. $16,100 ordinary income under Section 1245. $16,100 Section 1231 gain. $6,600 ordinary income under Section 1245 and $9,500 Section 1231 gain.5. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000? Total Gain/Loss Recognized? Ordinary Gain/Loss? 1231 Gain/Loss?3. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) b. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation? Total Gain/Loss Recognized? Ordinary Gain/Loss? 1231 Gain/Loss?
- n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000?n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were increased to $60,000? Total Gain/Loss Recognized Character of Recognized Gain/Loss Ordinary Gain/Loss 1231 gain/lossLinda sold equipment used in her business for $35,000. The equipment cost $27,000 and Linda had properly claimed MACRS deductions totaling $10,000. Straight-line depreciation, if it had been used, would have been $7,000. What is the amount and character of the gain? Sec. 1245 Sec. 1231 a. $ 3,000 $15,000 b. $ 7,000 $11,000 C. $10,000 $ 8,000 d. $18,000 $0 e. none of the above
- Required information Problem 11-44 (LO 11-3, LO 11-4) (Algo) [The following information applies to the questions displayed below.] Moran owns a building he bought during year 0 for $230,000. He sold the building in year 6. During the time he held the building, he depreciated it by $40,000. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answers blank. Enter zero if applicable. Problem 11-44 Part-b (Algo) b. Moran received $246,000. Description Total Gain or (Loss) Recognized Unrecaptured $1250 gain (and §1231 gain) Remaining $1231 gain or (loss) Amount15. Blue Company sold machinery for $45,000 on December 23, 2021. The machinery had been acquired on April 1, 2019, for $69,000 and its adjusted basis was $34,200. The § 1231 gain, § 1245 recapture gain, and § 1231 loss from this transaction are: a.$0 § 1231 gain, $0 § 1245 recapture gain, $14,800 § 1231 loss. b.$0 § 1231 gain, $10,800 § 1245 recapture gain, $34,200 § 1231 loss. c.$0 § 1231 gain, $34,200 § 1245 recapture gain, $0 § 1231 loss. d.$0 § 1231 gain, $10,800 § 1245 recapture gain, $0 § 1231 loss.7. Gibby sold 4-year-old business machinery for $100,000.The machinery had an original cost of $ 80,500. Gibby claimed$ 12,500 in depreciation through the date of sale. The only other§ 1231 transactions H has had were in the two prior years. Hehad a §1231 gain of $3,500 two years ago and a §1231 loss of$12,000 last year. How are Gibby’s gains for the current yeartreated?a. $12,500 ordinary gain; $19,500 long-term capital gainb. $21,000 ordinary gain; $11,000 long-term capital gainc. $24,500 ordinary gain; $7,500 long-term capital gaind. $32,000 ordinary gaine. $32,000 long term capital gain
- Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $72.500. and it has claimed $24,800 of depreciation expense against the building. Required: a. Assuming that Houswirth receives $59,700 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $59,700 compute Houswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Houswirth receives $26.500 in cash in year 0 and a $57,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. Complete this question by entering your answers in the tabs below. Required a Required b Required c Assuming that Hauswirth receives $59,700 in cash for the warehouse, compute the amount…In year 0, Longworth Partnership purchased a machine for $57,250 to use in its business. In year 3, Longworth sold the machine for $44,300. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $24,900. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) AmountGaston owns equipment that cost $27,500 with accumulated depreciation of $22,000. Gaston sells the equipment for $5,000. Which of the following would not be part of the journal entry to record the disposal of the equipment? Multiple Choice Debit Accumulated Depreciation $22,000. Credit Equipment $27,500. Debit Loss on Disposal of Equipment $500. Credit Gain on Disposal of Equipment $500. Debit Cash $5,000.