FINANCIAL&MANAGERIAL ACCOUNTING(LL)W/AC
15th Edition
ISBN: 9781337955447
Author: WARREN/TAYLOR
Publisher: CENGAGE L
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Chapter 23, Problem 4CMA
JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory
Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was $596,000, and actual fixed factory overhead was $410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was:
- a. $24,000 unfavorable.
- b. $2,000 unfavorable.
- c. $4,000 favorable.
- d. $22,000 favorable.
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Comprehensive Problem 2-76 (LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5) (Algo)
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Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2023. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2023:
Asset
Cost
Date Placed in Service
Office furniture
$ 400,000
02/03
Machinery
1,810,000
07/22
Used delivery truck *Note:
90,000
08/17
*Note:Not considered a luxury automobile.
During 2023, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2024 to increase its production capacity. These are the assets acquired during 2024:
Asset
Cost
Date Placed in Service
Computers and information system
$ 450,000
03/31
Luxury auto*Note:
92,500
05/26
Assembly equipment
1,200,000
08/15
Storage building
800,000
11/13
*Note:Used 100…
Entire chart at bottom needs filled in!
Now assume that during 2024, Karane decides to buy a competitor's assets for a purchase price of $1,649,500. Compute the maximum 2024 cost recovery, including §179 expense and bonus depreciation. Karane purchased the following assets in 2024 for the lump-sum purchase price:
Note: Round your final answers to the nearest whole dollar amount.
Asset
Cost
Date Placed in Service
Inventory
$ 270,000
09/15
Office furniture
280,000
09/15
Machinery
300,000
09/15
Patent
243,000
09/15
Goodwill
6,500
09/15
Building
480,000
09/15
Land
70,000
09/15
Assume that Karane takes the maximum section 179 expense for the Assembly Equipment.
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2023. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2023:
Asset
Cost
Date Placed in Service
Office furniture
$ 400,000…
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2023. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2023:
Asset
Cost
Date Placed in Service
Office furniture
$ 400,000
02/03
Machinery
1,810,000
07/22
Used delivery truck*Note:
90,000
08/17
*Note:Not considered a luxury automobile.
During 2023, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2024 to increase its production capacity. These are the assets acquired during 2024:
Asset
Cost
Date Placed in Service
Computers and information system
$ 450,000
03/31
Luxury auto*Note:
92,500
05/26
Assembly equipment
1,200,000
08/15
Storage building
800,000
11/13
*Note:Used 100 percent for business purposes.
Karane generated taxable income in 2024 of $1,795,000 for purposes of computing the §179 expense limitation. (Use MACRS Table 1, Table…
Chapter 23 Solutions
FINANCIAL&MANAGERIAL ACCOUNTING(LL)W/AC
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