XYZ is a calendar-year corporation that began business on January 1, 2017. For 2017, it reported the following information in its current year audited income statement. Notes with important tax information are provided below.

Notes:

XYZ owns 30 percent of the outstanding Hobble Corp. (HC) stock. Hobble Corp. reported $1,000,000 of income for the year. XYZ accounted for its investment in HC under the equity method and it recorded its pro rata share of HC's earnings for the year. HC also distributed a $200,000 dividend to XYZ.

Of the $20,000 interest income, $5,000 was from a City of Seattle bond (issued in 2014) that was used to fund public activities, $7,000 was from a Tacoma City bond (issued in 2014) used to fund private activities (a private activity bond), $6,000 was from a fully taxable corporate bond, and the remaining $2,000 was from a money market account.

This gain is from equipment that XYZ purchased in February and sold in December (i.e., it does not qualify as §1231 gain).

This includes total officer compensation of $2,500,000 (no one officer received more than $1,000,000 compensation).

This amount is the portion of incentive stock option compensation that was expensed during the year (recipients are officers).

XYZ actually wrote off $27,000 of its accounts receivable as uncollectible.

Regular tax depreciation was $1,900,000 and AMT (and ACE) depreciation was $1,700,000.

In the current year, XYZ did not make any actual payments on warranties it provided to customers.

XYZ made $500,000 of cash contributions to qualified charities during the year.

On July 1 of this year XYZ acquired the assets of another business. In the process it acquired $300,000 of goodwill. At the end of the year, XYZ wrote off $30,000 of the goodwill as impaired.

XYZ expensed all of its organizational expenditures for book purposes. XYZ expensed the maximum amount of organizational expenditures allowed for tax purposes.

The other expenses do not contain any items with book-tax differences.

This is an estimated tax provision (federal tax expense) for the year. Assume that XYZ is not subject to state income taxes.

XYZ calculated that its domestic production activities deduction (DPAD) is $90,000. This amount is not included on the audited income statement numbers.

Estimated tax information:

XYZ made four equal estimated tax payments totaling $480,000. For purposes of estimated tax liabilities, assume XYZ was in existence in 2016 and it reported a tax liability of $800,000. During 2017, XYZ determined its taxable income at the end of each of the four quarters as follows:

Finally, assume that XYZ is not a large corporation for purposes of estimated tax calculations. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

a. Compute XYZ’s taxable income.

• $28,000
• $0
• None of these answer choices are comect
• $6,000

Below is a potential menu for the stadium’s concession stand.
ITEM Selling Price   Variable Cost   Percent of Revenue
Hot Dog $3.00 $2.00 15%
Hamburger $4.00 $2.50   15%
French Fries   $4.50 $3.25 20%
Pizza $5.00   $4.00 5%
Nachos $4.25 $2.75 10%
Pretzel $2.75 $2.00 15%
Soda/Water   $3.00 $1.00 25%

how do you calculate the Fixed cost for each item?

The Los Angeles Galaxy soccer team is considering lowering ticket prices to increase sales. Their estimate demand curve is log(Q D) = 5.56 − 1.484 log(P).

(a) What is the estimated elasticity of demand for LA Galaxy tickets?

(b) Will the Galaxy lose revenue if they decrease ticket prices? Explain.

(c) What assumption is made about demand when we use the above equation to represent consumers’ demand for LA Galaxy tickets?

Q1: Fill in the Blanks. Assume the fixed cost is $200. Product price is $130.

The following table shows part of the probability distribution for the number of boats sold daily at Boats Unlimited. It is known that the average number of boats sold daily is 1.57. x f(x) 0 0.20 1 0.30 2 0.32 3 ? 4 0.05 5 ? Complete the distribution by computing the probabilities of selling 3 nd 5 boats per day.

All boats sell for $2000. What is the standard deviation of the daily revenue of the company?

UPLOAD A DRAWN PICTURE (however you're able like you did for discussion 1.) Draw the market for yachts, elastic demand, inelastic supply. Impose a tax on buyers of yachts, after all they’re rich and can afford it. Label: the without tax price and quantity, the price buyers pay after the tax, the price sellers receive after the tax, tax revenue, and deadweight loss. Was this program successful in taxing rich yacht buyers?

3.

Closing Entries.

Given the following information prepare the closing entries in good form for Matox, Incorporated as of December 31, 2016. Prepare the closing entries in good form.

Accounts Payable $30,000

Cash $253,000

Depreciation Expense 35,750

Insurance Expense 12,540

Prepaid Insurance 6,530

Salary Expense 32,874

Service Revenue 543,250

Supplies Expense 97,800

Mavery Roberts, Capital 248,000

Mavery Roberts, Drawing 23,650

You just stepped into a new role as an office manager. Due to a lack of consistency throughout the office, you have been asked to update the billing policies and procedures to include the following elements: Step-by-step instructions for the entire revenue cycle from pre-verification of insurance to accounts receivable management. Methodology your office will use to determine a pricing structure. Considerations for negotiating insurance contracts. Considerations for private pay and charity care.