Discuss the requirements for the tax year-end and accounting methods that may be required/adopted by Partnerships.

how to tell if an expenditure is being recorded as an asset or if it is being expensed immediately when looking at a balance sheet.

Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $290,000 for a 40 percent ownership interest, Mickayla is contributing a building with a value of $290,000 and a tax basis of $172,500 for a 40 percent ownership interest, and Taylor is contributing legal services for a 20 percent ownership interest. What amount of gain is each owner required to recognize under each of the following alternative situations? [Hint: Look at §351 and §721.] (Leave no answer blank. Enter zero if applicable.)

a. MMT is formed as a C corporation.

b. MMT is formed as an S corporation.

c. MMT is formed as an LLC.

Examine the following statements and tick the right answer –

1. The term sheet is a legal agreement between the founders of a company and the investors.-YES /NO

2. The term sheet is a legal agreement between the company and its founders to accept PE investment. - YES /NO

3. The term sheet is a legal agreement between the company and the PE investors. -YES/ NO

4. The term sheet is a list of terms and conditions based on which investors are agreeable to invest in a company. - YES /NO

5. Can the board of directors of a company decide to issue shares to investors for financing the company with PE investment? - YES /NO

6. If the investors mention an acceptable valuation of the company in the term sheet, can the shareholders of a company decide to reject the of fereven if the board of directors is willing to accept it? - YES /NO

7. Aftertheconclusionofexecutionofagreementsandsatisfactionoftheconditionsprecedent to investment, the funds will be made available to the company from the investors -YES

/ NO

8. Eveniftheduediligencefindingofacompanyarenotsatisfactory, can investors decide to go ahead with the transaction? - YES /NO

9. If two companies are theoretically identical in all financial parameters, can an investor value them differently? - YES /NO

10. Can the post-money value of a company be higher than the pre-money value if the company has no debt in its balance sheet? - YES /NO

Microsoft Dynamics GP Write off an Uncollectible accounts receivable Under the allowance method, the write off of a specific accounts receivable:

1. Decreases net income and decreases accounts receivable.

2. Decreases net income and decreases working capital.

3. Affects neither net income nor accounts receivable.

4. Affects neither net income nor working capital.

5. Increases bad debit expense and increases the allowance for doubtful accounts.

what are the formulas for

NOPM for the current year as if the company capitalized its operating leases.

NOAT for the current year as if the company capitalized its operating leases.

RNOA for the current year as if the company capitalized its operating leases.

Financial Leverage as if the company capitalized its operating leases

Return on Equity as if the company capitalized its operating leases

Nonoperating Return as if the company capitalized its operating leases

Math SAT scores (Y) are normally distributed with a mean of 1500 and a standard deviation of 140. An evening school advertises that it can improve students' scores by roughly a third of a standard deviation, or 30 points, if they attend a course which runs over several weeks. (A similar claim is made for attending a verbal SAT course.) The statistician for a consumer protection agency suspects that the courses are not effective. She views the situation as follows: H0 : = 1500 vs. H1 : = 1460.

Assume that after graduating from the course, the 420 participants take the SAT test and score an average of 1450. Is this convincing evidence that the school has fallen short of its claim at 2.5% level?

As director of capital budgeting, you are reviewing three potential investment projects with the following cost and cash flow projections.

1.Calculate the Internal Rate of Return (IRR) for each project.

2.Assuming your capital investment budget of $500,000 will only allow selection of one project (thus the projects are now mutually exclusive), which project should you fund?

Linda Larue has arthritis. Her chiropractor advised her that she needed to swim daily to alleviate her pain and other symptoms. Consequently, Linda and her husband, Philo, purchased for $400,000 a new home that had a swimming pool, after selling their old home for $325,000. If the Larues had constructed a pool at their former residence, it would have cost $75,000 to build, and it would have increased the value of their home by $50,000.

Answer the following

Facts:

Issues:

Conclusions:

Authorities( only use the IRS code/ Reg):

Analysis and Summary:

Action to be taken:

Miss Yu is performing the audit on leases of TipuPte Ltd for the year ended 31 December 2016. From the ledger, Miss Yu noticed that there are three items. which are on lease, i.e. a van, a lathe machine and the oven. As part of the audit, Miss Yu would send standard confirmation letters to the lessors. Two days before the end of the fieldwork, Miss Yu received confirmation from the van's lessor. Miss Yu's client has short taken the van lease by $10,000. Miss Yu sent the second reminder confirmation and managed to receive the confirmation from the lathe machine's lessor. The lease would only start from 1 January 2017. Miss Yu has to yet receive any confirmation pertaining to the leasing of the oven.

Required

a. What should Miss Yu do in the future to make sure that the confirmation letter are received and answered promptly?

b. There are discrepancies to two of the items. What further action should Miss Yu take?

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,600 helmets, using 2,268 kilograms of plastic. The plastic cost the company $14,969.

According to the standard cost card, each helmet should require 0.57 kilograms of plastic, at a cost of $7.00 per kilogram.

Required:

1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,600 helmets?

2. What is the standard materials cost allowed (SQ × SP) to make 3,600 helmets?

3. What is the materials spending variance?

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 5,100 of these meals using 2,000 direct labor-hours. The company paid its direct labor workers a total of $28,000 for this work, or $14.00 per hour.

According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $13.50 per hour.

Required:

1. What is the standard labor-hours allowed (SH) to prepare 5,100 meals?

2. What is the standard labor cost allowed (SH × SR) to prepare 5,100 meals?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:

During the most recent month, the following activity was recorded:

1. Nineteen thousand two hundred and fifity pounds of material were purchased at a cost of $1.70 per pound.

2. All of the material purchased was used to produce 2,500 units of Zoom.

3. 400 hours of direct labor time were recorded at a total labor cost of $5,200.

Required:

1. Compute the materials price and quantity variances for the month.

2. Compute the labor rate and efficiency variances for the month.

(For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar

Capital Rationing Decision for a Service Company Involving Four Proposals

Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows:

The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate of return of 12% is required on all projects. If the preceding standards are met, the net present value method and present value indexes are used to rank the remaining proposals.

Required:

1. Compute the cash payback period for each of the four proposals.

2. Giving effect to straight-line depreciation on the investments and assuming no estimated residual value, compute the average rate of return for each of the four proposals. If required, round your answers to one decimal place.

3. Using the following format, summarize the results of your computations in parts (1) and (2) by placing the calculated amounts in the first two columns on the left and indicate which proposals should be accepted for further analysis and which should be rejected. If required, round your answers to one decimal place.

4. For the proposals accepted for further analysis in part (3), compute the net present value. Use a rate of 15% and the present value of $1 table above. Round to the nearest dollar.

5. Compute the present value index for each of the proposals in part (4). If required, round your answers to two decimal places.

On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:

On January 2, Park borrowed $66,000 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand’s total fair value. The $66,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent).

(1) On a consolidated balance sheet as of January 2, what should be the amount for current assets?

(2) On a consolidated balance sheet as of January 2, what should be the amount for non current assets?

At December 31, 2017, Novak Corporation reported the following plant assets. Land $ 3,198,000 Buildings $26,610,000 Less: Accumulated depreciation—buildings 12,712,050 13,897,950 Equipment 42,640,000 Less: Accumulated depreciation—equipment 5,330,000 37,310,000 Total plant assets $54,405,950 During 2018, the following selected cash transactions occurred. Apr. 1 Purchased land for $2,345,200. May 1 Sold equipment that cost $639,600 when purchased on January 1, 2011. The equipment was sold for $181,220. June 1 Sold land for $1,705,600. The land cost $1,066,000. July 1 Purchased equipment for $1,172,600. Dec. 31 Retired equipment that cost $746,200 when purchased on December 31, 2008. No salvage value was received. Collapse question part (a) Journalize the transactions. Novak uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year useful life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Record entries in the order displayed in the problem statement. 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.)