Question 1 (1 point)

At a staff meeting, Carey and Paul, CPAs in the Miller CPA Firm, are debating the tax treatment of the qualified business income (QBI) deduction. Miller has a variety of tax clients ranging from individuals to partnerships to C and S corporations. Regarding the QBI deduction, it applies to income from which of the following entity types?

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Question 2 (1 point)

Stella C., an individual and U.S. citizen, owns a pack and ship business in Miami. She is the only owner. Currently, Stella's business is organized as a sole proprietorship. Stella was advised by her accountant to consider another business structure principally for personal liability reasons. In advising Stella regarding the choice of another business entity form, which of the following statements are correct?

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Question 3 (2 points)

Use the facts from the question above for Stella's pack and ship shop. Stella is considering admitting a new owner to her business to obtain capital for expansion in the local area. Regarding a potential owner, which of the following statements are correct? Select all correct answers. Your score will be the number of correct answers minus the number of incorrect answers.

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Question 4 (1 point)

Mike, K., an individual and U.S. citizen, started a motorcycle customization shop (BikeSix, Inc.) in Savannah in 2018. Mike organized the business as a C corporation. He is the only owner. During 2020, due to declining ridership from the Covid-19 virus, Mike's business realized a net operating loss of $34,000. The business was profitable in 2018 and 2019 with profits of 12,000 and $54,000, respectively. After preparing Mike's 2020 return, you'll have a phone conference to discuss his reporting options. Regarding the 2020 NOL, which of the following are correct?

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Question 5 (1 point)

Client Kayla is forming a business and seeks tax counsel regarding the benefits of alternative entity forms. If her business loses money the first year or two, this loss can be deducted on her individual tax return if she is a C corporation, but not an S corporation.

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Please help taking practice problems

Part #1: The Caribbean Club The Caribbean Club is one of the Virgin’s Islands/ hottest night spots. It’s a great place for locals to meet after work and relax with friends. It’s a popular destination for tourists why stay on the island, and it’s always on the list of fun entertainment choices for the crowds from the cruise ships that dock in the harbor. The reason the Club is so popular with such a variety of customers is because the founder of the club, Ross Stewart, always has such innovative and visionary ideas that delight the patrons. For example, every night of the week the Club features different activities or shows, including beach volleyball, Caribbean shows with calypso singers, would-class musicians who play steel drums, and other island entertainment. Since Ross was a former accountant and auditor with one of the largest public accounting firms in New Zealand, he is very accustomed to brainstorming sessions to generate ideas and surface concerns. He bought this practice with him to the Caribbean and holds brainstorming sessions with his “club associates” (Which is what he called all of the employees at the club) once every month to identify new and novel ideas to increase the popularity and profitability of the club. As you might imagine, the patrons of a night club are there to relax and enjoy themselves. So, the associates thought it would be great idea to somehow be able to recognize their regular patrons so that they wouldn’t have to trouble them with a bill every time a server came to their table with another round of drinks. After all, if the club wanted these people to “feel like they were at home with friends”, the patrons shouldn’t have to bother with trying to decide who owed what to pay the bill. So, Ross and his associated came up with the idea to implant their regular customers with an implantable microchip. The idea was to make the chip “fun”- to give an elite status so that their regular patrons would want to be implanted. To dramatize the elite status of the chip, Ross decided that the Club would have a special area where only those with chips. The “VIPs”, would be admitted. And of course, this area would have various exclusive services for these members. The chip would allow the VIPs to be recognized and to be able to pay for their food and drinks without any ID-they would simply pass by a reader and the Club would know who they are and their credit balance. Ross also wanted the information system supporting the chip to be a customer relationship management tool. Answer the following questions: 1. What do you think of this idea? What are the advantages and disadvantages of this idea for the Caribbean Club? 2. What are the advantages and disadvantages for the patrons? 3. If you were a passenger on a cruise ship, or staying at a resort on the island, would you get the chip implanted? Why or why not?

Part #2: Vertical Markets and Accounting Information Needs • There are many vertical markets industries apart from industries discussed in chapter 11. Identify two additional vertical markets industries and explain what are the unique characteristics of these industries that affect their AISs?

the table gives a total U.S expenditure for health services and supplies selected years from 2000 and projected to 2018.

year $(billion)

2000 1264

2002 1498

2004 1733

2006 1976

2008 2227

2010 2458

2012 2746

2014 3107

2016 3556

2018 4086

a. find an exponential function model to these data, with x equal to the number of years after 2000. b) use the model to estimate the U.S expenditure for health services and supplies in 2020.

2.The percent of boys age x or younger who have been seually active are given below.

Age cumulative percent seuual active girls cumulative percent sexual active boys

15 5.4 16.6

16 12.6 28.7

17 27.1 47.9

18 44.0 64.0

19 62.9 77.6

20 73.6 83.0

a). Creat a logarithmic function that model the data using an input equal to the age of the boys.

b) use the model to estimate the percent of boys age 17 or younger who have been seually active

c. compare the percent that are sexually active for the two genders, what do you conclude.

3). if $12000 is invested in an account that pays 8% interest, compounded quaterly, find the future value of this investment

a) after 2 year. b) after 10 years.

4).if $9000 is invested in an account that pays 8% interest, compounded quaterly . find the future value of this investment

a) after 0.5 year b)after 15 years

5. Grandparents decide to put a lump sum of money into a trust fund on their gtanddaughters 10th birthday so that she will have $1000000 on her 60th birthday. if the fund pays 11% compounded monthly. how much money must they put in the account.

6.At the end of t years the future value of an investment of $25000 in an account that pays 12% compounded quaterly is

S=25000(1+0.12 /4t )^4t dollars.. a) How many years will the investment amount to $60000.

Cussatt Construction Company had a contract starting April 2018, to construct a $48,000,000 building that is expected to be completed in September 2020, at an estimated cost of $44,000,000. At the end of 2018, the costs to date were $20,240,000 and the estimated total costs to complete had not changed. The progress billings during 2018 were $4,800,000 and the cash collected during 2018 was $6,400,000. Cussatt uses the percentage-of-completion method. For the year ended December 31, 2018, Cussatt would recognize gross profit on the building of: A) $ 1,840,000 B) $ 1,686,666 C) $ 2,160,000 D) $   0  

When you undertook the preparation of the financial statements for Sandhill Company at January 31, 2021, the following data were available:

Compute the ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of cost or market.

On January 1st, 2019, ABC Inc. purchased a copper mine for $400,000. The company is required by provincial law to restore the land on which the mine is located to its initial condition at the end of the mine's ten year useful life. Restoration costs are estimated to be $35,000. ABC is subject to an interest rate of 5%. ABC Inc uses straight line deprecation and follows IFRS.

Required

Prepare the journal entries required on January 1st and December 31st, 2019 and the journal entry for December 31, 2020. Round all entries to the nearest dollar.

On December 31, 2019, Resilient Company sells production equipment to Ready Corp. for $160,000. Resilient includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2019. Resilient estimates the prices to be $156,000 for the equipment and $4,000 for the cost of the warranty.

Required:

a) Prepare the journal entry to record this transaction on December 31, 2019.

b) Repeat the requirements for (a) assuming that, in addition to the assurance warranty, Resilient sold an extended warranty (service type warranty) for an additional two year (2019 – 2020) for $1,600.

On December 31, 2019, Resilient Company sells production equipment to Ready Corp. for $160,000. Resilient includes a one-year assurance warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31, 2019. Resilient estimates the prices to be $156,000 for the equipment and $4,000 for the cost of the warranty.

Required:

1. Prepare the journal entry to record this transaction on December 31, 2019.
2. Repeat the requirements for (a) assuming that, in addition to the assurance warranty, Resilient sold an extended warranty (service type warranty) for an additional two year (2019 – 2020) for $1,600.

The Welding Department of Healthy Company has the following production and manufacturing cost data for February 2020. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units, 1/10 complete Materials $18,000 Units transferred out 55,000 Conversion costs 14,175 $32,175 Units started 51,000 Materials 180,000 Ending work in process 11,000 units, 1/5 complete Labor 67,380 Overhead 61,445 Prepare a production cost report for the Welding Department for the month of February.