Return filed-when? Assume a 4/15 due date absent an extension.
Mr. B got an automatic six-month extension of time to file his return on or before October 15, 2016. He mailed the return on July 8, 2016, the post office postmarked the envelope on July 10, 2016, and the IRS received the return on July 13, 2016. What is the date the return was filed? (Please, explain)
In: Accounting
Income Taxes
Thun Company has been in operation for several years. It has both a deductible and a taxable temporary difference. At the beginning of 2016, its deferred tax asset was $690, and its deferred tax liability was $750. The company expects its future deductible amount to be "deductible" in 2017 and its future taxable amount to be "taxable" in 2018. In 2015, Congress enacted income tax rates for future years as follows: 2016, 30%; 2017, 34%; and 2018, 35%. At the end of 2016, Thun reported income taxes payable of $25,800, an increase in its deferred tax liability of $300, and an ending balance in its deferred tax asset of $860. Thun has prepared the following schedule of items related to its income taxes for 2016.
Required:
Fill in the blanks in the following schedule.
| Item | Amount |
|---|---|
| Taxable income for 2016 | $ |
| Future taxable amount, 12/31/16 | $ |
| Increase in future deductible amount during 2016 | $ |
| Income tax expense for 2016 | $ |
In: Accounting
On 1-1-2016, Michaelsen Corporation initiated a funded, noncontributory, defined benefit pension plan and gave employees credit for prior employment. The company complies with generally accepted accounting principles (GAAP). The actuary estimated the prior service cost to be $700,000 on 1-1-2016. Michaelsen contributed $600,000 to the pension fund on 1-1-2016, i.e., funded $600,000. The average remaining service period of current employees is approximately 6 years at all times. Service cost was $50,000 for 2016. The actual return on pension plan assets was 8% for 2016. The settlement rate (i.e., the actuary’s discount rate) is 4% per year. The expected return on pension plan assets is 5% per year. The market related value of pension plan assets is the same as the fair value of pension plan assets. Michaelsen contributed $175,000 to the pension fund on 12-31-2016, i.e., funded $175,000.
Required
On its 12-31-2016 balance sheet Michaelsen will report a pension plan
In: Accounting
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In: Accounting
Fortran Inc. purchased 100,000 shares, representing more than 20%, of Cobol Company on January 1, 2016. On July 1, 2016, Cobol paid dividends. The cost of the purchase, Cobol’s net income and total dividends for 2016 are given below. The market price of Cobol’s stock at 12/31/16 was $60 per share.
25% purchased, $5,125,000 cost, $600,000 total dividends paid, $3,000,000 Net Income
a.) What method of accounting should Fortran Inc. use to account for the investment in Cobol.
b.) Prepare the journal entry for the receipt of dividends for Fortran on July 1, 2016.
c.) Prepare the necessary journal entry (s) for Fortran as of December 31, 2016.
d.) What is the value of the investment in Cobol on Fortran’s balance sheet at December 31, 2016, if Fortran did not elect the fair value option?
e.) What is the value of the investment in Cobol on Fortran’s balance sheet at December 31, 2016, if Fortran elected the fair value option? Prepare the necessary journal entry.
In: Accounting
At the beginning of 2016, Cameron Company's retained earnings was $204,200. For 2016, Cameron has calculated its pretax income from continuing operations to be $108,000. During 2016, the following events also occurred:
During July, Cameron sold Division M (a component of the company). It has determined that the pretax income from the operations of Division M during 2016 totals $43,300 and that a pretax loss of $44,200 was incurred on the sale of Division M.
Cameron had 21,000 shares of common stock outstanding during all of 2016. It declared and paid a $2 per share cash dividend on this stock.
Required:
Assuming that all the "pretax" items are subject to a 30% income tax rate:
1. Complete the lower portion of Cameron Company's 2016 income statement, beginning with "Pretax Income from Continuing Operations." Round earnings per share computations to two decimal places.
2. Prepare an accompanying statement of retained earnings for the year ended December 31, 2016.
In: Accounting
On January 1, 2016, HGC Camera Store adopted the dollar-value
LIFO retail inventory method. Inventory transactions at both cost
and retail, and cost indexes for 2016 and 2017 are as follows: 2016
2017 Cost Retail Cost Retail Beginning inventory $ 51,800 $ 74,000
Net purchases 101,150 125,000 $ 107,532 $ 131,700 Freight-in 3,700
4,200 Net markups 18,500 11,400 Net markdowns 3,700 3,900 Net sales
to customers 125,250 118,800 Sales to employees (net of 20%
discount) 3,000 6,720 Price Index: January 1, 2016 1.00 December
31, 2016 1.06 December 31, 2017 1.10 Required: Estimate the 2016
and 2017 ending inventory and cost of goods sold using the
dollar-value LIFO retail inventory method. (Round your
cost-to-retail percentage calculation to 2 decimal places.
estimated ending inventory at retail 2016 2017
estimated ending inventory at cost
estimated cost of goods sold
In: Accounting
Dollar-Value LIFO Retail
Johns Company adopts the dollar-value LIFO retail inventory method on January 1, 2016. The following information for 2016 is obtained from Johns' records:
| Cost | Retail | |
|---|---|---|
| Inventory, January 1, 2016 | $20,000 | $29,000 |
| Purchases | 60,000 | 92,000 |
| Net additional markups | — | 1,000 |
| Net markdowns | — | 3,000 |
| Sales | — | 75,000 |
The price index on January 1, 2016, was 100, and on December 31, 2016, it was 110.
Required:
Compute the cost of the inventory on December 31, 2016. Round the cost-to-retail ratio to three decimal places.
| JOHNS COMPANY | ||
| Calculation of cost of inventory using Dollar-Value LIFO | ||
| December 31, 2016 | ||
| Cost | Retail | |
| Beginning inventory | $20,000 | $29,000 |
| Purchases | 60,000 | $92,000 |
| Add: Markups (net) | 1,000 | |
| Less: Markdowns (net) | (3000) | |
| $90,000 | ||
| Goods available for sale | $80,000 | $119,000 |
| Less: Sales | 75,000 | |
| Ending inventory at retail | $44,000 | |
| Ending inventory at cost | $ ? | |
In: Accounting
Let t be a positive integer. Prove that, if there exists a Steiner triple system of index 1 having v varieties, then there exists a Steiner triple system having v^t varieties
In: Advanced Math
Is the following equation dimensionally correct?
v= sqrt(pH/PE)
v= feet per second
p = grams per cubic cm
H = height in feet
PE = joules
In: Physics