This year, Benjamin Hassell paid $17,850 of interest on a mortgage on his home (Benjamin borrowed $595,000 to buy the residence and it is currently worth $952,000), $14,400 on a $180,000 home equity loan on his home, and $12,000 of interest on a mort..
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Cost Allocation and Apparent Profitability. Diamonds, Etc. manufactures jewelry settings and sells them to retail stores. In the past, most settings were made by hand, and the overhead allocation rate in the prior year was $12 per labor hour ($2,400,..
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Carter bought a car for her company on July 1, 2002 (mid year) for $35,000. She had to pay $600 in sales taxes, $200 for delivery charges and since she owns a nanny service, had it painted with diapers which cost $1,000.
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On January 1, 2014, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,680,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $930,000, retained earnings of ..
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On Jan 1, 2009 XYZ Co purchased 12,000 shares of ABC Co for $15 a share. ABC has 100,000 shares outstanding. ABC reported net income of $60,000 and paid dividends of $5,000. On Dec 31, 2009 ABC had a market value of $17 a share. XYZ accounts for this..
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Whitman Corporation, a merchandising company, reported sales of 17,000 units for May at at selling price of $702 per unit. The cost of goods sol (all variable) was $448 per unit and the variable selling expense was $60 per unit. Prepare a contributio..
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A company's income statement showed the following: net income, $143,000 and depreciation expense, $35,700. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accoun..
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Describe the rules to determine whether to apply fresh start accounting to Kansas City - If fresh start accounting is appropriate, how will this company's assets be reported?
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The Buchanan Company has gathered the following information for a unit of its most popular product: Special packaging and other selling expenses would be an additional $2.10 per unit for the special order. How many units of regular sales could be los..
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Vermont Instruments manufactures two models of calculators. The finance model is the Fin-X and the scientific model is the Sci-X. Both models are assembled in the same plant and require the same assembling operations. The difference between the mo..
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Evaluate the cost of abnormal rework and spoilage, goods completed, and ending work in process.
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Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labor cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, What predetermined ..
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