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Ace custom boats built and delieverd a boat, "titanic", to a customer during . the boat required materials costing ,$40,000 and labor of $30,000. factory overhead for 2012 was expected to total $400,000 and total direct labor of $500,000 was expected. during the year, factroy costs totaled $410,000 and direct labor totaled $510,000, including the amount paid for the titanic. ace's contract with the customer requires payment in full on the date the boat is completed. the boat was started on January 2, 2012 and completed June 20.
a. What is the normal cost of the titanic? why?
b. What is normal cost used to determine the sales price?
c. What is the actual cost of the Titanic? why?
White Corporation, a closely held personal service corporation, has $150,000 of passive losses, $120,000 of active business income, and $30,000 of portfolio income. How much of the passive loss may White Corporation deduct?
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