Weber resides in a state that imposes a tax on income. The
following information relating to Weber's state income taxes is
available:
| State income taxes withheld in 2018 | $3,000 |
| State sales taxes paid | $650 |
| Refund received in 2018 for 2017 tax | $300 |
| Assessment paid in 2018 for 2016 tax | $800 |
What amount should Weber use as state and local income taxes in
calculating itemized deductions for his 2018 Federal income tax
return?
a.$3,800
b.$3,500
c.$3,000
d.$2,700
e.None of these choices are correct.
In: Accounting
Al is a medical doctor who conducts his practice as a sole proprietor. During 2018, he received cash of $280,000 for medical services. Of the amount collected, $40,000 was for services provided in 2017. At the end of 2018, Al had accounts receivable of $60,000, all for services rendered in 2018. In addition, at the end of the year, Al received $12,000 as an advance payment from a health maintenance organization (HMO) for services to lx? rendered in 2019- Compute Al’s gross income for 2018:
a. Using the cash basis of accounting.
b. Using the accrual basis of accounting.
In: Accounting
At the beginning of 2018, Morley & Company had 560 units in inventory that were purchased at the following prices. Year purchased Units Cost per unit 2014 120 $100 2015 140 $110 2016 140 $115 2017 160 $120 During 2018 Morley was on strike, but the company sold 440 units of its products out of inventory. The cost that Morley would have incurred in manufacturing additional units during 2018 was $125. Assume the company uses the LIFO method for valuing inventories. The impact on 2018 pretax income of the decrease in inventory was:
In: Accounting
Ex. 18-134—Percentage-of-completion method. Penner Builders contracted to build a high-rise for €35,000,000. Construction began in 2018 and is expected to be completed in 2020. Data for 2018 and 2019 are:
2018 2019
costs incurred to date 4.5M 13M
Estimated cost to complete 18M. 12M
Penner uses the percentage-of-completion method.
Instructions
A: How much gross profit should be reported for 2018? Show your computation.
B: How much gross profit should be reported for 2019?
C: Make the journal Entry to record the revenue and gross profit for 2019
In: Accounting
In: Accounting
Coronado Industries changed from the double-declining-balance to the straight-line method in 2018 on all its equipment. There was no change in the assets’ salvage values or useful lives. Plant assets, acquired on January 2, 2015, had an original cost of $1,670,400, with a $83,200 salvage value and an 8-year estimated useful life. Income before depreciation expense was $284,800 in 2017 and $342,400 in 2018.
A.)Prepare the journal entry to record depreciation expense in 2018.
B.) Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2017 and 2018.
In: Accounting
Courtney is a 50% partner in CD Partnership. Courtney and CD have calendar tax years. Courtney’s basis in her partnership interest is $25,000 on January 1, 2018. CD Partnership sustains an operating loss of $80,000 for 2018. CD Partnership earns business taxable income of $70,000 for 2019.
In: Accounting
On January 1, 2018, the Marjlee Company began construction of an
office building to be used as its corporate headquarters. The
building was completed early in 2019. Construction expenditures for
2018, which were incurred evenly throughout the year, totaled
$7,200,000. Marjlee had the following debt obligations which were
outstanding during all of 2018:
| Construction loan, 10% | $ | 1,800,000 | |
| Long-term note, 9% | 2,400,000 | ||
| Long-term note, 6% | 4,800,000 | ||
Required:
Calculate the amount of interest capitalized in 2018 for the
building using the specific interest method.
In: Accounting
North Ltd. purchased a building in 2015 for $1,390,000. Straight-line depreciation was used, with a useful life of 40 years and a residual value of $400,000. A full year of depreciation was charged in 2015. In 2018, the company decided to switch depreciation methods to declining balance, using a rate of 10%. The tax rate is 25%.
Required:
1. Assume this is a change in estimate, and calculate 2018 depreciation expense.
|
2 Assume this is a change in policy, and calculate 2018 depreciation expense and the cumulative effect of the change on 2018 opening retained earnings.
Depreciation expense
Cumulative effect
In: Accounting
RE: Netflix Ratios for 2016 - 2017 - 2018
Describe how and why each of the ratios has changed over the three-year period. For example, did the current ratio increase or decrease? Why? Describe how three of the ratios you calculated for your company compare to the general industry
Current Ratio: 2018 (1.49) 2017 (1.4) 2016 (1.25)
Debt Equity Ratio 2018 (1.98) 2017 (1.81) 2016 (1.26) - Industry Avg (36.8)
Price Earnings Ratio: 2018 (118.55) 2017 (220.95) 2016 (328.44) - Industry Avg (27,4)
In: Finance