MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
20th Edition
ISBN: 9781259969614
Author: SPILKER
Publisher: MCG
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Question
Chapter 15, Problem 51P
a.
To determine
Compute M’s after-tax
b.
To determine
Compute M’s after-tax cash flow from the entity’s business income and other forms of compensations if M received a salary of $100,000. Assume all the business income was allocated and distributed to M.
c.
To determine
Compute M’s after-tax cash flow from the entity’s business income and other forms of compensations if M received a salary of $20,000. Assume all the business income was allocated and distributed to M.
d.
To determine
Determine the compensation combination that generated the most after-cash flow for M. State the contributing factors that favoured this combination.
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Item
Hourly labor unges
Description
920 hours $27 per hour
190 hours for Job 101
340 hours for Job 102
Factory supervision
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Factory Janitorial work
Selling, general, and
administrative salaries
Total payroll costs
Required:
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1. & 2. Prepare the journal entries for payroll and to apply manufacturing overhead to production. The company applies manufacturing
overhead to products at a predetermined rate of $54 per direct labor hour
Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.
View transaction list
Journal entry worksheet
A
B
Record Fairfield Company's payroll costs to be paid at a later date.
Note Enter debits before credits.
S.No Date
1
Account Title
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Chapter 15 Solutions
MCGRAW-HILL'S TAX.OF INDIV.+BUS.2020
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