Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $66,000. Meg works part-time at the same university. She earns $31,800 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules ,Dividends and Capital Gains Tax Rates.) (Round final answers to the nearest whole dollar amount.)

rev: 10_18_2018_QC_CS-144256

b. What is the Comers’ tax liability for 2018 if they report the following capital gains and losses for the year?

Alt Corporation enters into an agreement with Yates Rentals Co. on January 1, 2011 for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement:
(a) The term of the noncancelable lease is 3 years with no renewal option. Payments of $155,213 are due on December 31 of each year.
(b) The fair value of the machine on January 1, 2011, is $400,000. The machine has a remaining economic life of 10 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease.
(c) Alt depreciates all machinery it owns on a straight-line basis.
(d) Alt's incremental borrowing rate is 10% per year. Alt does not have knowledge of the 8% implicit rate used by Yates.
(e) Immediately after signing the lease, Yates finds out that Alt Corp. is the defendant in a suit which is sufficiently material to make collectibility of future lease payments doubtful.

Question: 1.what is the amount of the reduction in the lease liability for Alt Corp in the second full year of the lease if Alt Corp accounts for the lease as a finance lease.

2.If the leased machine has a $350,000 cost to Yates, the profit Yates get from the lease should be ?

Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations.
  

  
Required:
1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).
2. Post the journal entries from part 1 to the ledger accounts.
3. Prepare a trial balance as of April 30.

Anderson​, Martin​, and Bryant have capital balances of $24,000​, $36,000​, and $60,000​, respectively. The partners share profits and losses as​ follows:

a. The first $50,000 is divided based on the​ partners' capital balances.

b. The next $50,000 is based on​ service, shared equally by Anderson and Bryant. Martin does not receive a salary allowance.

c. The remainder is divided equally.

Compute each​ partner's share of the $121,000 net income for the year. ​(Complete all answer boxes. For amounts that are​ $0, make sure to enter​ "0" in the appropriate​ column.)

Furtastic manufactures imitation fur garments. On June 1, 2018, Furtastic made a sale to Willett’s Department Store under terms that require Willett to pay $170,000 to Furtastic on June 30, 2018. In a separate transaction on June 15, 2018, Furtastic purchased brand advertising services from Willett for $16,000. The fair value of those advertising services is $7,000. Furtastic expects that 2% of all sales will prove uncollectible.

Required:
1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the Furtastic’s sale on June 1, 2018.

2. Record the Furtastic’s purchase of advertising services from Willett on June 15, 2018. Assume all of the advertising services are delivered on June 15, 2018.

3. Record the Furtastic’s receipt of $170,000 from Willett on June 30, 2018.

1. Budget Performance Reports for A decentralized unit in which the department or division manager has responsibility for the control of costs incurred and the authority to make decisions that affect these costs.Cost Centers

   Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow:

   Garland Company Budget Performance Report—Vice President, Production For the Month Ended November 30
   Plant	Budget		Actual		Over Budget		Under Budget
   Eastern Region	$483,500		$483,500				$0
   Central Region	348,100		344,600				(3,500)
   Western Region	(g)		(h)		(i)
   	$(j)		$(k)		$(l)		$(3,500)

   Garland Company Budget Performance Report—Manager, Western Region Plant For the Month Ended November 30
   Department	Budget		Actual		Over Budget		Under Budget
   Chip Fabrication	$(a)		$(b)		$(c)
   Electronic Assembly	90,190		91,360		1,170
   Final Assembly	143,400		142,250				$(1,150)
   	$(d)		$(e)		$(f)		$(1,150)

   Garland Company Budget Performance Report—Supervisor, Chip Fabrication For the Month Ended November 30
   Cost	Budget		Actual		Over Budget		Under Budget
   Factory wages	$23,070		$24,680		$1,610
   Materials	62,400		61,960				$(440)
   Power and light	3,870		4,610		740
   Maintenance	6,240		6,830		590
   	$95,580		$98,080		$2,940		$(440)

   a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a-l) as marked above.

   a. $	g. $
   b. $	h. $
   c. $	i. $
   d. $	j. $
   e. $	k. $
   f. $	l. $

   b. Complete the following memo to Cassandra Reid, vice president of production for Garland Company, explaining the performance of the production division for November.

   MEMO
   To: Cassandra Reid, Vice President of Production

   The

   • Eastern Region
   • Central Region
   • Western Region
   plant has experienced a budget overrun. Its budget reveals that the
   • Chip Fabrication
   • Electronic Assembly
   • Final Assembly
   Department caused the majority of the budget overrun. The supervisor of the
   • Chip Fabrication
   • Electronic Assembly
   • Final Assembly
   Department should investigate the reasons for the budget overruns in
   • factory wages, materials, and maintenance
   • materials, power and light, and maintenance
   • factory wages, power and light, and maintenance
   .

Sole Purpose Shoe Company

Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing facilities in your state. Sarah began the business this year, and while she has a great deal of experience in manufacturing popular and comfortable shoes, she needs some help in evaluating her results for the year, and asks for your help.

Direct Materials

Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.60 units of material per pair of shoes. During July, Sole Purpose Shoe Company incurred actual direct materials costs of $61,321 for 6,890 units of direct materials in the production of 2,200 pairs of shoes.

Complete the following table, showing the direct materials variance relationships for July for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance.

Direct Labor

Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.80 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,610 for 7,290 hours of direct labor in the production of 2,300 pairs of shoes.

Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance.

Budget Performance Report

Sarah has learned a lot from you over the past two months, and has compiled the following data for Sole Purpose Shoe Company for September using the techniques you taught her. She would like your help in preparing a Budget Performance Report for September. The company produced 3,500 pairs of shoes that required 12,250 units of material purchased at $8.20 per unit and 9,450 hours of labor at an hourly rate of $8.90 per hour during the month. Actual factory overhead during September was $28,350. When entering variances, use a negative number for a favorable cost variance, and a positive number for an unfavorable cost variance.

Use the data in the following table to prepare the Budget Performance Report for Sole Purpose Shoe Company for September.

Adams Manufacturing Inc. buys $11.9 million of materials (net of discounts) on terms of 2/10, net 50; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo discounts, how much additional credit could it obtain? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to the nearest cent.
$   

What would be the nominal and effective cost of such a credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.
Nominal cost:   %
Effective cost:   %

If the company could receive the funds from a bank at a rate of 8.2%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan? Do not round intermediate calculations. Round your answer to two decimal places.
  %

discuss the purposes for planning the audit and identify the steps that are performed during this phase of the engagement? A couple of paragraphs about this third phase. Accounting audit

Why are inventories and prepaid expenses excluded in computing the acid-test ratio?

Imagine that you are a leader of a company that wants to change to more of a B corporation. However, many of the current employees have been with the company for over five years and have established a culture that may not be in line with your new vision. Your job is to analyze your own leadership style and what changes you will need to make to see your vision become reality. You will also need to investigate other companies and how they changed their corporate culture.

Flexible Budget for Selling and Administrative Expenses for a Service Company

Morningside Technologies Inc. uses flexible budgets that are based on the following data:

Prepare a flexible selling and administrative expenses budget for April for sales volumes of $110,000, $140,000, and $165,000. Enter all amounts as positive numbers.

Kubin Company’s relevant range of production is 13,000 to 18,000 units. When it produces and sells 15,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.40 Direct labor $ 4.40 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 5.40 Fixed selling expense $ 3.90 Fixed administrative expense $ 2.90 Sales commissions $ 1.40 Variable administrative expense $ 0.90 Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 15,500 units? b. What is the total indirect manufacturing cost incurred to make 15,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 15,500 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $44,950 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation. a. When the company sells 15,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When the company sells 15,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?