This year, Amber purchased a business that processes and packages landscape mulch. Approimately 20 percent of manage time, space, and expenses are spent on this manufacturing process. At the end of the year, Amber's accountant indicated the business had processed 10 million bags of mulch, but only 1 million bags remained in the ending inventory What is Amber's tax basis in her ending inventory if the UNICAP rules are used to allocate indirect costs to inventory? Assum costs are allocated to inventory according to the level of ending inventory. In contrast, indirect costs are first allocated by time and then according to level of ending inventory) (Leave no answers blank. Enter zero if applicable) Costs Tax Inventory Material Mulch and packaging 710,000 66,500 1,360.000 430.000 750,000 945.000 Material Administrative supplies Salaries: Factory labor Salaries Sales & advertising Salaries: Administration Property taxes Factory Property taxes: Ofces 450,000 005 000

This year, Amber purchased a business that processes and packages landscape mulch. Approimately 20 percent of manage time, space, and expenses are spent on this manufacturing process. At the end of the year, Amber's accountant indicated the business had processed 10 million bags of mulch, but only 1 million bags remained in the ending inventory What is Amber's tax basis in her ending inventory if the UNICAP rules are used to allocate indirect costs to inventory? Assum costs are allocated to inventory according to the level of ending inventory. In contrast, indirect costs are first allocated by time and then according to level of ending inventory) (Leave no answers blank. Enter zero if applicable) Costs Tax Inventory Material Mulch and packaging 710,000 66,500 1,360.000 430.000 750,000 945.000 Material Administrative supplies Salaries: Factory labor Salaries Sales & advertising Salaries: Administration Property taxes Factory Property taxes: Ofces 450,000 005 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

mary is starting her own horse racing and breeding farm in paducah, KY in the current year. She purchased the following assets on April 28: one year old filly=4380, machinery= 34800, light duty truck= 44200, and land=67200. If mary does not elect section 179 or use bonus depreciation, what is her first year depreciation deduction?
Sid Slaw purchased a car three years ago that he used for both private and business purposes (he is a freelance journalist). Sid bought the vehicle for $40,000 and made an initial input tax claim of $4,173.91 out of the $5,218 GST paid. After a year, Sid realised he had overestimated his business use proportion and made an output tax adjustment of $2,086.95. Sid has just sold the car for $12,000. Calculate the net amount of GST Sid should return to the IRD upon sale of the car?
Andrew, a self-employed professional, used his personal vehicle for business trips this year. He paid $2,700 for gasoline. His car's depreciation for full business use would be $6, 200. Andrew drove a total of 18, 500 miles during the year, with 3,700 miles documented for business purposes. What business expense amount can Andrew deduct (if any) for these trips, considering that the IRS allows a standard mileage deduction of $0.56 per mile for business use? ***This question already posted and received correct answer. Kindly Don't answer this question again. If you answer i will give 10 dislikes. ****
Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2022. Stanford incurred the following expenses: Total investigation costs related to the restaurant Total investigation costs related to the bakery $42,750 53,300 If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar. What is the maximum amount Stanford can deduct in 2022 for investigation expenses?
Mr. C sold goods worth P201,600 (inclusive of vat) to Mr. D on account. Mr. D purchased goods from Mr. E worth P200,000 (exclusive of vat) on account. Mr. D sold all of the goods purchased to Mr. X at 40% above cost plus vat. All of them are VAT registered taxpayers. How much is the sales to be recorded by Mr. D?
Eve is a physician who earns $400,000 from her practice during the current year. This year, she acquired a passive activity that produces a loss of $150,000. Deductible loss?
On April 5, 2023, Kinsey places in service a new automobile that cost $67,250. He does not elect § 179 expensing, and he elects not to take any available additional first-year depreciation. The car is used 70% for business and 30% for personal use in each tax year. Kinsey uses the regular MACRS method of cost recovery (the auto is a 5-year asset). Click here to access the depreciation table to use for this problem. If required, round your final answers to the nearest dollar. Compute the total depreciation allowed for: 7,070 X 2023: 2024: $ $ 11,270 X
Margaret Lindley paid $15,160 of interest on her $301,600 acquisition debt for her home (fair market value of $501,600), $4,160 of interest on her $30,160 home- equity debt used to buy a new boat and car, $1,160 of credit card interest, and $3,160 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,160 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year? Multiple Choice O₁ O $23,640 $22,480 $19,320 $18,320 None of the choices are correct.
Last year, lana purchased a $100,000 account receivable for $90,000. During the current year, Lucy collected $97,000 on the account. What are the tax consequences to Lucy associated with the collection of the account receivable? No subsequent collections are expected. a.$7,000 gain b.$3,000 loss c.$13,000 loss d.$2,000 gain
This year, Amber purchased a business that processes and packages landscape mulch. Approximately 20 percent of management time, space, and expenses are spent on this manufacturing process. At the end of the year, Amber's accountant indicated that the business had processed 10 million bags of mulch, but only 1 million bags remained in the ending inventory. What is Amber's tax basis in her ending inventory if the UNICAP rules are used to allocate indirect costs to inventory? (Assume direct costs are allocated to inventory according to the level of ending inventory. In contrast, indirect costs are first allocated by time spent and then according to level of ending inventory.) (Leave no answers blank. Enter zero if applicable.) Material: Mulch and packaging Material: Administrative supplies Salaries: Factory labor Salaries: Sales & advertising Salaries: Administration Property taxes: Factory Property taxes: Offices Depreciation: Factory Depreciation: Offices Total Inventory Costs $ Costs…
Lauren’s Construction Company is a calendar year taxpayer. In 2010, a hurricane destroyed three of Lauren’s truck with a $1,250,000 aggregate adjusted tax basis. On October 12, Lauren received a $3,500,000 reimbursement check from its insurance company. On May 19, 2011, Lauren purchased new trucks for $4,250,000. Compute Laurens’s realized gain or loss on the involuntary conversion and its tax basis in the new trucks. a. $0 realized gain; $1,250,000 basis in the trucks. b. $2,250,000 realized gain; $4,250,000 basis in the trucks. c. $1,250,000 realized gain; $1,250,000 basis in the trucks. d. $2,250,000 realized gain; $2,000,000 basis in the trucks. e. None of the above
January Smith purchased a fancy car, a Ferrari, for $70,000 and claimed CA overtime in Class 10.1. Her opening UCC balance for the current year was $25,000 andshe sold the car for $30,000. She has no other pieces of equipment in that pool.Calculate the total impact on her taxable income.