Regarding the statute of limitations on additional assessments of tax by the IRS, select the applicable date in each of the following situations. Note: Assume a calendar year individual with no fraud or substantial omissions involved. a. The income tax return for 2018 was filed on March 3, 2019. The three-year statute of limitations will begin to run on . b. The income tax return for 2018 was filed on August 13, 2019. The statute of limitations will begin to run on . c. The income tax return for 2018 was prepared on March 31, 2019, but was never filed. Through some misunderstanding between the preparer and the taxpayer, each expected the other to file the return. The statute of limitations . d. The income tax return for 2018 was never filed because the taxpayer thought no additional tax was due. The statute of limitations .

Suppose that Ramos contributes $5500/year into a traditional IRA earning interest at the rate of 5%/year compounded annually, every year after age 37 until his retirement at age 67. At the same time, his wife Vanessa deposits $3850/year (the amount after paying taxes at the rate of 30%) into a Roth IRA earning interest at the same rate as that of Ramos. Suppose that Ramos withdraws his investment upon retirement at age 67 and that his investment is then taxed at 30%. (Round your answers to the nearest cent.)

(a)How much will Ramos's investment be worth (after taxes) at that time?

(b)How much will Vanessa's investment be worth at that time?

Problem 21-1

Monty Leasing Company agrees to lease machinery to Flounder Corporation on January 1, 2017. The following information relates to the lease agreement.

(Assume the accounting period ends on December 31.)

Part 1:

Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

My answer for Part 1 (INCORRECT): 133,805

Part 2:

Compute the present value of the minimum lease payments. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

My answer for Part 2 (INCORRECT): 716,561

Part 3:

Prepare the journal entries Monty would make in 2017 and 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 58,971.)

To record the lease, on 1/1/17

Dave Solomon is 59 years of age and is planning for his retirement. Dave is a barrister at a leading law firm. His gross salary for the 2019–2020 income year totals $345,000. He has decided to sell the majority of his assets as detailed below:

•  A two-storey residence at St Lucia, described in PoTL end of chapter question 11.6 (a)

•  A painting, described in PoTL end of chapter question 11.6 (b)

•  A parcel of shares, described in PoTL end of chapter question 11.6 (d).

•  A unit in a unit complex that he holds as a residential rental property investment. Davepurchased the unit ‘off plan’ on 1 January 2012 for $350,000. The unit was tenanted from that day. On 1 August 2019, Dave replaced the stove in the unit with a new one that cost him $1,800. He uses the diminishing value method for income tax purposes, and the effective life of the stove is 12 years. Dave sold the unit on 29 February 2020 for $450,000, and applies an apportionment of 0.2% on the sale of depreciating assets as set out in the ATO Rental properties Guide for rental property owners. During the 2019–2020 income year, Dave received rent totalling $16,800. By 30 June 2019, Dave had claimed Div 43 capital works deductions totalling $52,500.

  You are required to:

  Calculate Dave’s taxable income for the 2019–2020 income year. Show all your calculations and provide reasons for your answer, referencing relevant sections of the Income Tax Assessment Acts.

  Question 2

  Your client is a wealthy investor and property owner. Your client provides you with information (as detailed below) about various transactions that took place between 1 July 2019 and 30 June 2020.

1. 1) Warehouse: On 30 April 1985 your client acquired a large parcel of vacant land at Rocklea, a suburb in Brisbane with a significant number of commercial buildings. The purchase price was $180,000 and your client incurred $2,000 in legal fees and $18,000 in transfer duty when purchasing the land. In April 2000 your client signed a contract for the construction of a large warehouse on the land. The final construction cost was $1,000,000. The warehouse is used tohouse your client’s extensive motor vehicle collection. Your client signs the contract to sell the warehouse for $2,200,000 on 1 June 2020. Your client receives the proceeds on 1 July 2020. At the time of sale, an independent valuation revealed the land component of the sale price was $1,200,000. Your client paid $80,000 to insure the warehouse building against flood and fire damage.

2. 2) Boat: Your client owned a luxury motor cruiser that was moored at the Manly Yacht Club. Your client used the boat to go fishing over weekends and to cruise the waters of Moreton Bay. Your client purchased the vessel in late 2006 for $140,000 and sells the vessel on 1 June 2020 to a local boat broker for $90,000. During the period of ownership, your client paid a total of $25,000 in weekly mooring fees to the Manly Yacht club and also incurred $20,000 in repairs on the vessel.

3. 3) Dining Table: Your client acquires a large, hand crafted, English oak dining table for $8,000 in April 2001. The table is very old, having been constructed sometime during 1910 and was used by your client and his family in their formal dining room. Your client auctions the table on 2 April 2020 and it sells for a record price of $50,000. Your client pays $2,000 in auction fees. Duringyour client’s period of ownership they paid $3,000 to insure the table against loss or damage.

4. 4) Your client also has a capital loss carried forward from the 2017–2018 income year of $10,000.

You are required to:

Calculate which amount(s), if any, must be returned as assessable income for the 2019–2020 income year. Show all your calculations and provide reasons for your answer, referencing relevant sections of the Income Tax Assessment Acts.

Sierra Company manufactures soccer balls in two sequential processes: Cutting and Stitching. All direct materials enter production at the beginning of the Cutting process. The following information is available regarding its May inventories: Beginning Inventory Ending Inventory Work in process inventory—Cutting 83,500 80,500 Work in process inventory—Stitching 103,300 72,900 Finished goods inventory 28,100 16,250 The following additional information describes the company's production activities for May. Direct materials Raw materials purchased on credit $ 45,000 Direct materials used—Cutting 22,750 Direct materials used—Stitching 0 Direct labor Direct labor—Cutting $ 17,600 Direct labor—Stitching 70,400 Total factory payroll paid (in cash) 143,800 Factory Overhead (Actual costs) Indirect materials used $ 18,000 Indirect labor used 55,800 Other overhead costs 51,000 Factory Overhead Rates Cutting (150% of direct materials used ) Stitching (120% of direct labor used ) Sales $416,000 rev: 01_28_2020_QC_CS-197408 2. Prepare summary journal entries dated May 31 to record the following production activities during May: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor costs incurred, (e) indirect labor costs incurred, (f) payment of factory payroll, (g) other overhead costs, (credit Other Accounts), (h) overhead applied, (i) goods transferred from Cutting to Stitching, (j) goods transferred from Stitching to finished goods, (k) cost of goods sold, and (l) sales.

darcy james borrowed $15,000 which she is paying back in 48 monthly payments of $420 each. with 14 payments remaining, she decides to repay the loan in full. use the rules of 78 to find the amount necessary to pay off the loan

-Assume all unrealistic assumptions related to CAPM holds. Still the assumption which says “all investors will buy market portfolio” seems to be unrealistic.

-Standard deviation and beta (beta is for stocks) both measure the same concept.

-Ignoring the magnitudes, Correlation is still more accurate than Covariance.

This is true or false, so a brief explanation would be very helpful, Thanks!

1. NAM manufactures yoga props such as straps and blocks. Straps are sold to customers at a price of $15 per strap. The company is currently operating at 75% capacity with regard to strap production and produces 30,000 straps per year. At the current operating level, the cost of producing and selling a single strap is as follows:

An order has been received from a chain of yoga studios for 12,000 straps at a special price of $10 per strap. If the special order is accepted, the unit variable manufacturing costs will increase by $0.20 per strap due to the addition of a special label the studio has requested be included on the straps. Additionally, the total fixed product costs will increase by 5%. Variable period costs consist solely of sales commissions, which will not be paid on the special order. Fixed period costs will not be affected by acceptance of the special order.

What is the effect on operating income if the special order is accepted? (indicate the amount and if operating income would increase or decrease) (circle your final answer

Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020.

EMPIRE COMPANY
Income Statement
For the Month Ended October 31, 2020
Sales revenue               $795,000   
Less:   Operating expenses                  
Raw materials purchases       $264,600           
Direct labor cost       190,200           
Advertising expense       91,000           
Selling and administrative salaries       77,800           
Rent on factory facilities       61,000           
Depreciation on sales equipment       45,800           
Depreciation on factory equipment       32,500           
Indirect labor cost       28,200           
Utilities expense       11,600           
Insurance expense       8,300        811,000   
Net loss               $(16,000)  

Prior to October 2020, the company had been profitable every month. The company’s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.

1. Inventory balances at the beginning and end of October were:

October 1
October 31
Raw materials       $19,700       $36,000
Work in process       19,400       14,700
Finished goods       29,900       53,500

2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.
(a)
Prepare a schedule of cost of goods manufactured for October 2020.

EMPIRE COMPANY
Cost of Goods Manufactured Schedule

Identify & Explain the Following:

1. Net Income:
2. Total Current Assets:
3. Book Value of Equipment:
4. Total Assets:
5. Identify ALL the Temporary Accounts from the following:

Cash, notes payable, depreciation expense, service fee expense, accumulated depreciation, salaries expense, dividends, service revenue, supplies.

Approximately Relevant ABC

Reducir, Inc., produces two different types of hydraulic cylinders. Reducir produces a major subassembly for the cylinders in the Cutting and Welding Department. Other parts and the subassembly are then assembled in the Assembly Department. The activities, expected costs, and drivers associated with these two manufacturing processes are given below.

Other overhead activities, their costs, and drivers are listed below.

Other production information concerning the two hydraulic cylinders is also provided:

Other overhead activities:.

The per unit overhead cost using the 14 activity-based drivers is $1,108 and $779 for Cylinder A and Cylinder B, respectively.

Required:

1. Determine the percentage of total costs represented by the three most expensive activities.

%

2. If required, round your interim calculations and final answers to the nearest dollar.
Allocate the costs of all other activities to the three activities identified in Requirement 1 in proportion to their individual activity costs.

Calculate the total activity costs of all the three activities.

Now assign these total costs to the products using the drivers of the three chosen activities.

3. Using the costs assigned in Requirement 2, calculate the percentage error using the ABC costs as a benchmark. Round your answers to one decimal place. If an item is negative, use a minus (-) sign to indicate.

identify the purpose and content of the statement of cash flows identify the major types of financial ratios and what they mesure

Write an e-mail to your friend explaining the differences between financial and managerial accounting. Provide easy examples to help your friend understand. Remember to tell your friend why a good understanding of the differences in financial and managerial accounting is important.

16. According to the SEC, which of the following compromises independence between an auditor and his client?

A. If the auditor also prepares the tax returns for his client

B. If the relationship between the auditor and the client places the accountant in the position of auditing his own work

C. If the auditor has been on the engagement for more than four years

D. If the client pays the audit fees

17. What is one common criticism of corporate governance programs?

A. Public recognition of whistleblowers deters some people from reporting instances of fraud.

B. Whistleblower policies do not incentivize or reward employees to report instances of fraud to management or the board.

C. Punishment inflicted on fraudsters is too harsh.

D. Monetary rewards are too generous.

18. What is the best way to mitigate the risk of fraud with regard to social media?

A. Implement a social media policy.

B. Restrict access to social media sites on company computers to all employees outside of the public relations department.

C. Limit the social media presence of your organization to reputable sites such as LinkedIn and Twitter.

D. Require all employees to adjust their Facebook privacy settings in a particular way.

19. Which of the following is characteristic of an official code of ethics?

A. An official code of ethics is not a requirement for publicly traded companies.

B. An official code of ethics can eliminate any possible confusion regarding a conflict of interest.

C. An official code of ethics is an effective substitute for moral principles, culture, and character.

D. An official code of ethics is not intended to govern behavior.