Chapter 24, Problem 24SP

Delta Tech Inc. has the following: . Current assets: $8,900 • • • Net fixed assets: $34,100 Current liabilities: $6,500 Long-term liabilities: $18,300 a. What is shareholders' equity? b. What is net working capital?

General Accounting

Hawales Corporation, a calendar year, accrual method C corporation, has two cash methods, calendar year shareholders who are unrelated to each other. Craig owns 35 % of the stock, and Oscar owns the remaining 65 %. During the current year, Hawales paid a salary of $100,000 to each shareholder. On December 31, of the current year, Hawales accrued a bonus of $25,000 to each shareholder. Assuming that the bonuses are paid to the shareholders on February 3, of the next year, compute Hawales Corporation's current year deduction for the above amounts.