Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.80p per unit. Fixed costs are expected to amount to 56,000p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.30p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 8 percent of the sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina’s national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina’s peso was worth .104 U.S. dollar.)

1a) Suppose management alters its current plans by spending an additional amount of 4,300p on advertising and increases the selling price to 7.80p per unit. Calculate the profit on 66,000 units. (Do not round intermediate calculations. Enter your answer in pesos.)

1b) The Sorde Company has just approached Corrientes to make a special one-time purchase of 19,000 units. These units would not be sold by the sales personnel, and, therefore, no commission would have to be paid. What is the price Corrientes would have to charge per unit on this special order to earn additional profit of 43,700p? (Round your answer to 2 decimal places. Enter your answer in pesos.)

1c) What is Leno’s current selling price of item no. 8976?

1d) If Leno used target costing for item no. 8976, what must happen to costs if the company desires to meet the market price and maintain its current rate of profit on sales? By how much?

1e) Would the identification of value-added and non-value-added costs assist Leno in this situation? (Yes or No)

1f) Suppose that by previous cost-cutting drives, costs had already been “pared to the bone” on item no. 8976. What might Leno be forced to do with its markup on cost to remain competitive? By how much? (Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e., .1234 should be entered as 12.34).)

1g) In many industries, prices are the result of an interaction between market forces and costs. (True or False)

This is my question from the subject of principles of income tax law below:

Nikki owns and carries on a chain of clothing stores. So far she has 7 of such stores. When she chooses a premises to open a new store on, the most important criterion is where she can maximise the sales of clothes. However, she is also influenced by the potential for the land on which each of the shop premises is located on to grow in capital value. In late 2019, Nikki decides to develop one of the shop premises, because real estate in the area which it is located on had appreciated markedly in recent years. This involved Nikki obtaining a building approval from the local council, demolishing the shop, and building a 6 storey apartment building on the land. As Nikki did not know much about building, this consisted of contracting a major builder to be in charge of the process of building the apartment. These apartments are sold individually to the public through a leading real estate agent.

Ignoring Capital Gains Tax, discuss whether the sales proceeds from the apartments generate ordinary income.

The answer needs approximately 400 words.

Thanks

Exercise 16-11 (Part Level Submission)

The Polishing Department of Major Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.

Production: Beginning inventory 1,730 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 46,900; ending inventory of 7,700 units 10% complete as to conversion costs.

Manufacturing costs: Beginning inventory costs, comprised of $22,100 of materials and $38,332 of conversion costs; materials costs added in Polishing during the month, $220,077; labor and overhead applied in Polishing during the month, $127,100 and $258,240, respectively.

a. Compute the equivalent units of production for materials and conversion costs for the month of September.

The equivalent units of production

Materials:_________

Conversion Costs:_________

B.Compute the unit costs for materials and conversion costs for the month.

Cost per equivalent unit of material :

C.Determine the costs to be assigned to the units transferred out and in process.

Cost of units transferred out:

Our accounting firm has won the engagement to be the new federal income tax consultant for a fortune 500 company. In the course of preparing the federal income tax returns for its tax year ending December 31, 2017, we reviewed the company's federal income tax returns for recent years. Our review discovered a large error in the company's computation of its domestic production activities deduction. The error is the result of misunderstanding the law, and was repeated on all of the recent returns. We have discussed the matter briefly and informally with the client, who has indicated that they would rather not file amended returns correcting the error. The client has also indicated that it would like a written analysis of the issue, including the chances of the issue being found by the IRS on audit and of the client prevailing on the matter if it winds up in court. To prepare for the next meeting with the client on this matter, we need to determine:

• Under the IRS rules applicable to tax practitioners, what are our ethical obligations to the client and to the IRS with regard to these mistakes, the analysis requested by the client and our advice to the client?
• Under the AICPA's standards, what are our ethical obligations to the client and to the IRS with regard to these mistakes, the analysis requested by the client and our advice to the client?

On pages 6-15 and 6-16 (Section 6-3b), the text explains that taxpayers are not allowed a business deduction for political contributions or for expenses incurred for lobbying activities.

• How does the IRS define what is a “political contribution” that cannot be deducted? Is the disallowance limited to outright gifts, or does it extend to less direct methods of providing funds to a candidate or party? If the latter, please explain the circumstances in which the disallowance applies to something that is not an outright gift.
• How does the IRS define what is “lobbying,” so that a taxpayer may determine what expenses are not deductible as lobbying expenses?
• Many not-for-profit organizations are engaged in lobbying, but still qualify to receive deductible charitable contributions. Does this activity affect an individual’s ability to claim a charitable deduction for contributions to an otherwise qualified organization? If so, in what circumstances, and how is the deduction affected?

On page 16-12, the text states that corporations (other than S corporations) are generally prohibited from using the cash method of accounting, but that there is an exception for “qualified personal service corporations.” The text states that a qualified personal service corporation is one that performs services in the fields of “health, law, engineering, architecture, accounting, actuarial science, performing arts, or consulting” and whose employees own substantially all of the stock of the corporation.

• Are there any other fields in which a qualified personal service corporation may provide services? If so, please list them.
• What is the test for determining if a qualified personal service corporation meets the stock ownership requirement? Describe in detail.
• What are the consequences of a corporation failing to meet the criteria as a qualified personal service corporation for a taxable year?

1. Given the information below about Thomas Corporation, what was the amount of dividends the company paid in the current period?

2. The ending Retained Earnings balance of Boomer Inc. decreased by $1.9 million from the beginning of the year. The company declared a dividend of $4.7 million during the year. What was the net income for the year?

3. When a company pays utilities of $1,710 in cash, the transaction is recorded as:

4. When a company pays $2,100 dividends to its stockholders, the transaction should be recorded as:

5. A company received a bill for newspaper advertising services, $460. The bill will be paid in 10 days. How would the transaction be recorded today?

6. On March 3, Cobra Inc. purchased a desk for $350 on account. On March 22, Cobra purchased another desk for $415 also on account, and then on March 24, Cobra paid $470 on account. At the end of March, what amount should Cobra report for desks (assuming these two desks were the only desks they had)?

7.

Use the following information to prepare a trial balance.

8. At the beginning of December, Global Corporation had $1,800 in supplies on hand. During the month, supplies purchased amounted to $3,000, but by the end of the month the supplies balance was only $1,400. What is the appropriate month-end adjusting entry?

9.

The following table contains financial information for Trumpeter Inc. before closing entries:

What is Trumpeter's net income?

Determine the depreciation of the equipment with a cost of 560,000.00

For a period of 6years life the salvage value is 5% of the cost. use 3 methods of depreciation. If you want to resale the machine on the 3rd year which method you will use and why.

Through which process a person process or a paper process can a good strategic manager accomplish a strategic plan as part of a business policy? Promote one process over the other, and then evaluate the quality of the strategic management process with each process is utilized.

Which of the following would indicate a nonmonetary exchange has commercial substance:

A. The fair value of the asset received is significantly higher than the book value of the asset given up.

B. Cash was received in the exchange.

C. The expected cash flows associated with the asset involved in the exchange re significantly different.

D. Both A&C

A new employee has been given responsibility for preparing the consolidated financial statements of Sample Company. After attempting to work alone for some time, the employee seeks assistance in gaining a better overall understanding of the way in which the consolidation process works. You have been asked to assist in explaining the consolidation process. The employee is asking you to respond to the following questions:

PLEASE SHOW YOUR WORK:

1. How is the beginning-of-period non-controlling interest balance determined?
2. How is the end-of-period non-controlling interest balance determined? Provide an example.
3. Which of the subsidiary’s account balances must always be eliminated? Why?
4. Which of the parent company’s account balances must always be eliminated? Why?

Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Steinberg expects to sell 90,000 regular models and 18,000 deluxe models. A segmented income statement for the two products is as follows:

Required:

1. Compute the number of regular models and deluxe models that must be sold to break even. Round all intermediate calculations to four decimal places, and round your final answers to the nearest whole unit.

2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. Round the contribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than a whole percentage.) Round the amount of revenue to the nearest dollar.

Schylar Pharmaceuticals, Inc., plans to sell 120,000 units of antibiotic at an average price of $18 each in the coming year. Total variable costs equal $820,800. Total fixed costs equal $7,400,000.

Required:

1. What is the contribution margin per unit? Round your answer to the nearest cent.
$

What is the contribution margin ratio? Round your answer to two decimal places. (Express as a decimal-based answer rather than a whole percent amount.)

2. Calculate the sales revenue needed to break even. Round your answer to the nearest dollar.
$

3. Calculate the sales revenue needed to achieve a target profit of $215,000. Round your answer to the nearest dollar.
$

4. What if the average price per unit increased to $19.50? Recalculate the following:

a. Contribution margin per unit. Round your answer to the nearest cent.
$

b. Contribution margin ratio. Enter your answer as a decimal value (not a percentage), rounded to four decimal places.

c. Sales revenue needed to break even. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.
$

d. Sales revenue needed to achieve a target profit of $215,000. In your computations, use your rounded answer from part (4-b) above for the contribution margin ratio, and round your final answer to the nearest dollar.
$

The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems.

Required: