List the types of tax-free reorganizations?

Data for Jim's Landscaping are shown below: Per Unit % of Sales Selling Price $600 100% Variable Expenses $390 65 % Contribution Margin $210 35 %

Fixed Expenses are $500,000 per month and the company is selling 5,000 units per month.

7) The marketing manager believes that a $54,000 increase in the monthly advertising budget would increase monthly sales by 250 units (a 5% increase in sales). Should the advertising budget be increased? Yes or no? SHOW YOUR WORK

8) Jim's Landscaping Operation Manager believes that if they increase the quality of the components that the higher-quality product would increase sales by 10%. The higher quality components will cost an additional $20 per unit. Should the higher quality components be used? SHOW YOUR WORK

On 2 January 2016, Southern Pizza bought a used Nissan delivery van for R19 200. The van was expected to remain in service for four years (30 000 Kilometers). At the end of its useful life, Southern officials estimated that the van 's residual value would be R2 400. The van travelled 8000 Km the first year, 8 500 Km the second year, 5 500 Km the third year, and 8 000 Km in the fourth year. Prepare a schedule of depreciation expense per year for the van under the three (3) depreciation methods. ( For -units -of-production and double-declining-balance, round to the nearest two (2) decimals after each step of calculation.)

Required:

1. Which method best tracks the wear and tear of the van?

2. Which method would Southern prefer to use for income tax purposes? Explain in detail why Southern prefer this method.

Frozen Ltd purchased machinery on 1 July 2011 for $680,000.  The machinery is expected to have a useful life of 20 years and a residual value of $80,000.  The firm accounts for the machinery using the revaluation model.  The fair value of the machinery on 30 June 2012 is $699,400. The machinery was sold for $500,000 cash on 31 December 2013.  No revisions are made to the useful life and residual value at the time of the revaluations.

1. Record depreciation of the machinery for the year ended 30 June 2012.
2. Record the entries to revalue the machinery on 30 June 2012.
3. Record depreciation of the machinery for the year ended 30 June 2013.
4. Record allentries necessitated by the sale of the machinery on 31 December 2013.

Erumpifier Multiproduct Breakeven Case ABC Company has committed to contracts and other fixed exp...

erumpifier Multiproduct Breakeven Case

ABC Company has committed to contracts and other fixed expenses in the amount of $100,000 per

month. Its four major product lines include the following hair care products:



Structurizers



Volumizers



Derumpifiers



Coagulators (to stop the bleeding)

Anticipated annual volumes for each of the above respectively is: 10,000, 20,000, 30,000, 40,000 units.

Variable costs for each of the above respectively is: $10, $15, $20, $25

Selling price for each of the above respectively is: $20, $60, $50, $75

Required:

1.

Complete the Multiproduct breakeven analysis and:

E.

Is contribution margin profit?

F.

Is the company breaking even? And if so, how much does it make?

G.

What can a company do when it is below breakeven?

must state whether the Variance is Favourable or Unfavourable. To receive full credit your answer must be labeled as such. For example: An answer such as “- $4500” will not be given full credit, even if the number is correct. The same number shown as “$4500 Favourable” would receive full marks. The following are independent questions: 1. Information on Fleming Company's direct material costs follows: Actual amount of direct materials purchased and used 20,000 kilograms Actual direct material costs $40,000 Standard direct material costs $2.10 per kilogram Calculate the direct materials price variance – 2 marks 2. During March, Younger Company’s direct material costs for product T were as follows: Actual unit purchase price $6.50 per meter Standard quantity allowed for actual production 2,100 meters Quantity purchased and used for actual production 2,300 meters Standard unit price $6.25 per meter Calculate the materials usage variance – 2 marks 3. The following labour standards have been established for a particular product Standard labour hours per unit of output 1.7 hours Standard labour rate $14.25 per hour The following data pertains to operations concerning the product for the last month: Actual hours worked 3,700 hours Actual total labour cost $50,690 Actual output 2,300 units Calculate the labour rate variance – 2 marks 4. Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour. During June, 1,000 units were produced using 4,100 hours at $12.20 per hour. What was the direct labour efficiency variance? Calculate the labour efficiency variance – 2 marks

Journal entries for a Custodial Fund The city of Belle collects property taxes for other local governments—Beau County and the Landis Independent School District (LISD). The city uses a Property Tax Collection Custodial Fund to account for its collection of property taxes for itself, Beau County, and LISD. Prepare journal entries to record the following transactions and events for Belle’s Custodial Fund during calendar year 2019. 1. During 2019, property taxes were levied for Belle ($2,000,000), Beau County ($1,000,000) and LISD ($3,000,000). Assume taxes collected by the Custodial Fund will be paid to Belle’s General Fund. 2. Property taxes in the amount of $4,500,000 are collected. The percentage collected for each entity is in the same proportion as the original levy. 3. The amount owed to the city of Belle, Beau County, and LISD is recognized. The city of Belle charges an administrative fee to Beau County ($20,000) and LISD ($60,000) to collect the taxes, which reduces the amount owed to Beau County and LISD. 4. The Custodial Fund distributes the amount owed to the three governments.

Discuss the differences in using an option to hedge a foreign currency risk rather than a forward contract.

1/ An asset acquired January 1, 2018, for $14,300 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2019, for $5,400. The entry to record the sale would be:

Multiple Choice

• Cash	5,400
  Accumulated depreciation	8,900
  Equipment		14,300

• Cash	5,400
  Accumulated depreciation	3,575
  Loss on sale of equipment	5,325
  Equipment		14,300

• Cash	5,400
  Loss on sale of equipment	8,900
  Equipment		14,300

• Cash	5,400
  Equipment		5,400

2/ Cutter Enterprises purchased equipment for $99,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $5,100.

Using the straight-line method, depreciation for 2019 and the equipment's book value at December 31, 2019, would be:

Multiple Choice

• $19,800 and $79,200 respectively.

• $18,780 and $61,440 respectively.

• $18,780 and $56,340 respectively.

• $39,600 and $59,400 respectively.

The Western Pipe Company has the following capital section in its balance sheet. Its stock is currently selling for $4 per share.

The firm intends to first declare a 10 percent stock dividend and then pay a 15-cent cash dividend (which also causes a reduction of retained earnings).

Show the capital section of the balance sheet after the first transaction and then after the second transaction.

             Western Pipe Co. After Stock Dividend

Common Stock:____________________

Capital in access of par:______________

Retained Earnings:__________________

Total Equity:_______________________

              Western Pipe Co. After Stock Dividend

Common Stock:____________________

Capital in access of par:______________

Retained Earnings:__________________

Total Equity:_______________________

Consider the following information for Maynor Company, which uses a perpetual inventory system:

The company sold 57 units on May 1 and 52 units on October 28.

Required:

Calculate the company's ending inventory and cost of goods sold using the each of following inventory costing methods.

1. FIFO
2. LIFO
3. Weighted Average

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 7,200 units of product were as follows:

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method.

Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow.

Additional Information on Year 2017 Transactions

1. Purchased equipment for $36,000 cash.
2. Issued 12,000 shares of common stock for $5 cash per share.
3. Declared and paid $89,000 in cash dividends.

Required:
Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.)

Briefly describe the proper accounting (financial reporting) for each of the following items:

a. Change in Accounting Principle

B. change in accounting estimate

c. errors (mistakes or oversights) uncovered in previously issued financial statements

On December 31, 2020, Ivanhoe Inc. has a machine with a book value of $1,297,200. The original cost and related accumulated depreciation at this date are as follows.

Depreciation is computed at $82,800 per year on a straight-line basis.

Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.

A fire completely destroys the machine on August 31, 2021. An insurance settlement of $593,400 was received for this casualty. Assume the settlement was received immediately. (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.)

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List of Accounts

On April 1, 2021, Ivanhoe sold the machine for $1,435,200 to Yoakam Company. (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.)

On July 31, 2021, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,518,000. (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.)