A taxpayer is considered to be at risk under the at risk rules for which of the following and under what section of the Code?

a. money borrowed by another for which payment is guaranteed by the taxpayer; Code Section 469(a).

b. money borrowed by the taxpayer from another who has an equity interest in the taxpayer’s business; Code Section 61.

c. qualified nonrecourse financing; Code Section 469.

d. qualified nonrecourse financing; Code Section _____(if you conclude none of a, b, or c is correct, write in the citation for the correct section of the Internal Revenue Code, including the subsection and paragraph, if applicable).

In the Month of March, Digby Corporation received orders of 175 units at a price of $15.00 for their product Dim. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 116 units in March and the balance of 58 units in April. They received payment for 58 units in March, 58 units in April, and 58 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)

From the information given below, prepare a November income statement, a November statement of retained earnings, and a November 30 balance sheet. On November 1, of the current year, Garza Décor Inc. had a beginning retained earnings of $50,000. On November 30, records for Garza Décor Inc. showed the following items and amounts.

A company is trading in a fully depreciated old asset for a new one. Cost of the new asset is $5,000 with a 5 year life and straight-line depreciation will be used. The company receives a $500 allowance for the asset traded in. Additional sales revenue from the investment will be $2,100 and expenses of $400 (excluding depreciation). The company is in a 25% tax bracket. The payback period is:

a. 7.5 years

b. 8.33 years

c. 3.46 years

d. 2.95 years

34. Given the facts in question 53, the ARR is:

a. 17.8%

b. 23.3%

c. 8.9%

d. 8%

37. An increase in the price of Nike brand shoes will cause a decrease in the demand for Nike brand shoes.

Group of answer choices

True

False

38. If a cartel is successful, the group of firms will _______ output, charge a price that is _______, and total revenue will increase if the good sold has _______ demand.

Group of answer choices

increase, higher, inelastic

increase, lower, elastic

decrease, higher, elastic

decrease, lower, elastic

decrease, higher, inelastic

39. The average total cost curve passes through the minimum point of the marginal cost curve.

Group of answer choices

True

False

In 1987, Roy leased real estate to Drab Corporation for 20 years. Drab Corporation made significant capital improvements to the property. In 2006, Drab decides not to renew the lease and vacates the property. At that time, the value of the improvements is $800,000. Roy sells the real estate in 2018 for $1,200,000 of which $900,000 is attributable to the improvements. When is Roy taxed on the improvements made by Drab Corporation?

Lee, a citizen of Korea, is a resident of the U.S. Any rent income Lee receives from land he owns in Korea. Is that revenue (from Korea) subject to the U.S. income tax? Explain.

7. Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense. The rackets sell for $180 each. Last year, production was 100,000 rackets. Fixed costs were $1,100,000. What were total production costs? What is the marginal cost per pair? What is the average cost? If the company is considering a one-time order for an extra 10,000, what is the minimum acceptable total revenue from the order. (10 Points)

Use excel and excel formulas

Suppose that Tomorrowland Speedway Incorporated is estimating cash flows for a new project.  The projections for the first year are as follows:

If the tax rate facing the firm is 34%, what is the project cash flow for the first year?

Question 11 options:

The following table shows a demand schedule facing a monopolist.

Quantity: 0    1   2   3   4   5   6   7   8   9  10

Prices:     25 25 24 23 22 21 20 19 18 17 16

The marginal cost of the production is always 13.00 and the profit maximizing output, average a total cost is $20.00

1. What is the profit maximizing (or loss minimizing) output for this?
2. What is the price at which that output will sell in the market?
3. Compute the total cost
4. Compute the total revenue
5. compute profit or loss at the maximizing output level

Draft a written memo to the client addressing the following research issues:

Merrill Lynch contacts you for guidance on this issue. Should the revenue be reported in 2017 or 2018 for financial statement reporting purposes? Why? Please site the specific guidance you followed in response to your research question. The primary issue you should research is whether an accrual basis securities firm has gross income under sec. 451(a) on the trading date or the next year on the settlement date when all the work is performed, payment is due, and money received