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Tax Question

Need Form 1040, Form 2106 and Schedule A and B please and thankyou

Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6789 and 111-11-1112, respectively. Alice’s birthday is September 21, 1969, and Bruce’s is June 27, 1968. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (employer identification number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (employer identification number 11-1111111). The following information is shown on their Wage and Tax Statements (Form W–2) for 2016.

Line Description

Alice Bruce 1 Wages, tips, other compensation $58,000 $62,100

2 Federal income tax withheld 4,500 6,300

3 Social Security wages 58,000 62,100

4 Social Security tax withheld 3,596 3,850

5 Medicare wages and tips 58,000 62,100

6 Medicare tax withheld 841 900

15 State Massachusetts Massachusetts

16 State wages, tips, etc. 58,000 62,100

17 State income tax withheld 2,950 3,100

The Byrds provide over half of the support of their two children, Cynthia (born January 25, 1992, Social Security number 123-45-6788) and John (born February 7, 1996, Social Security number 123-45-6786). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $4,200 from a summer internship in 2016, and John earned $3,800 from a part-time job. During 2016, the Byrds provided 60% of the total support of Bruce’s widower father, Sam Byrd (born March 6, 1940, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam’s life, received life insurance proceeds of $1,600,000 on December 28. The Byrds had the following expenses relating to their personal residence during 2016:

Property taxes $5,000

Qualified interest on home mortgage 8,700 Repairs to roof 5,750

Utilities 4,100

Fire and theft insurance 1,900

The Byrds had the following medical expenses for 2016:

Medical insurance premiums $4,500

Doctor bill for Sam incurred in 2015 and not paid until 2016 7,600

Operation for Sam 8,500

Prescription medicines for Sam 900

Hospital expenses for Sam 3,500

Reimbursement from insurance company, received in 2016 3,600

The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father’s support. Other relevant information follows:

• When they filed their 2015 state return in 2016, the Byrds paid additional state income tax of $900.

• During 2016, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50.

• The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition.

• Alice and Bruce made a gift to a needy family who lost their home in a fire ($100). In addition, they made several cash gifts to homeless men downtown ($35).

• In 2016, the Byrds received interest income of $2,750, which was reported on a Form 1099–INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 (Employer Identification Number 98-7654322). The mortgage (outstanding balance of $425,000 as of January 1, 2016) was taken out by the Byrds on May 1, 2012.

• Alice’s employer requires that all employees wear uniforms to work. During 2016, Alice spent $850 on new uniforms and $566 on laundry charges.

• Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association.

• Neither Alice’s nor Bruce’s employer reimburses for employee expenses.

• The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax.

• All members of the Byrd family had health care coverage for all months of 2016.

• This year the Byrds gave each of their children $2,000, which was then deposited into their Roth IRAs.

• Alice and Bruce paid no estimated Federal income tax.

Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign.

Tax Computation:

Compute net tax payable or refund due for Alice and Bruce Byrd for 2016. If they have overpaid, they want the amount to be refunded to them. If you use tax forms for your computations, you will need Forms 1040 and 2106 and Schedules A and B.

Sandra’s Purse Boutique has the following transactions related to its top-selling Gucci purse for the month of October. Sandra's Purse Boutique uses a periodic inventory system.
 

2. Using FIFO, calculate ending inventory and cost of goods sold at October 31. 

Alice J. and Bruce M. Jones are married taxpayers who file a joint return. Alice’s birthday is September 21, 1961, and Bruce’s is June 27, 1960. Bruce is the office manager for Ames Dental Clinic. Alice is the CPA at Lehman, York & Hunter CPA, LP.

The Jones provide over half of the support of their two children, Cynthia (born January 25, 1994, Social Security number (017-44-9126) and John (born February 7, 1995, Social Security number (017-27-4148), who live with them. Both children are full-time students and live with the Jones except when they are away at college. Cynthia is in her third year of college, and earned $8,750 from a summer internship in 2016, and John is in his first year of college and he earned $6,500 from a part-time job in 2016. In 2016, the Jones’ paid $4,500 for Cynthia’s college tuition and $7,500 for John’s college tuition. The Jones also provided all the support for their 26-year-old son Ryan who recently graduated from law school but cannot find employment. Ryan lives in DC.

According to Mr. Jones on July 01, 2016, he and his wife exchanged their two-family house in Westchester County (378 Pinebrook Blvd, New Rochelle, NY), which they rented entirely from January 01, 2005 to July 01, 2016, for a four family rental property located at 581 Atlantic Avenue, Brooklyn, NY. At the time of the exchange, the FMV of the two-family house was $900,000, and the adjusted basis was $275,000. The four-family house had an adjusted basis of $600,000 and a FMV of $800,000. The two-family home was subject to a $100,000 mortgage, which the buyer assumed. The Jones also owned and rented a two-unit commercial retail building located at 1560 Avenue A, New York NY, which they purchased on December 01, 2015 and placed in service on January 01, 2016. Information for all three of the rental properties is listed below.

In March 2016, Bruce decided to start his own business; a retail bicycle shop to be located in NYC near Central Park called “Bruce’s Bikes.” On April 20, 2016, Bruce signed a 10-year lease at a monthly rental rate of $10,000, effective May 01, 2016, for retail space on 110^th Street and CPW. The lease provided that Bruce was responsible for the costs of improving the retail space for its intended use. The terms of the lease also provided that the first three months were rent-free so that Bruce could complete the construction needed to operate a retail bike shop. When Bruce executed the lease he paid the landlord $30,000 as a security deposit. On May 01, 2016, Bruce paid a contractor $225,000 to provide all construction work relating to the build-out, which included electrical, plumbing, and carpentry. On June 01, 2016, Bruce purchased the following assets for the business:

Equipment $ 35,000

Furniture & Fixtures $ 10,000

Computer Equipment $ 12,500

Although Bruce planned on a grand opening on July 01, 2016, the construction was not completed until July 21, 2016, causing Bruce to delay the grand opening until August 01, 2016.

On August 01, 2016, Bruce purchased a new truck for $32,500, which weighs 9,500 pounds, to be used 100% in the business for pickups and deliveries.

Bruce planned to finance the new business with the $125,000 inheritance he received on 03/01/2016, from his late father’s estate. Bruce also planned to use $50,000 of savings he had invested with Madoff Investment Securities (MIS) but learned on 3/29/2016, that his entire savings was lost as a result of a massive ponzi scheme. In order to come up with the additional funds needed to finance the construction, equipment, and inventory, Bruce’s grandfather loaned him $75,000 on 05/15/2016. On December 25, 2016, Bruce received a letter from his grandfather stating that he forgives the entire $75,000 loan effectively immediately.

For 2016, the bike shop generated the following revenues and incurred the following expenses:

Sales, Rental, & Service Revenue $ 255,000.00

Inventory purchased 125,000.00

Inventory on hand at December 31, 2016 60,000.00

Rent from (August 01 – December 31, 2016) 50,000.00

Salaries 35,000.00

Supplies 15,000.00

Utilities 12,000.00

Promotional expense 5,000.00

Travel to Trade Shows 1,000.00

Meals & Entertainment 1,100.00

Postage and Delivery 1,000.00

Telephone 1,200.00

Attorney fees 2,500.00

Pre-startup investigative expense 53,000.00

Other relevant information:

Bruce has decided that he wants to minimize his tax as much as legally possible and has requested your assistance in preparing his 2016 Federal income tax return.

Bruce has asked you to depreciate as much of the capital expenditures as legally possible, but he does not want to use IRC Sec 179 expense or first year bonus depreciation.

The company has adopted the accrue method of accounting for inventory and cash method for all other purposes.

On March 15, 2016, York Technology Inc. filed for bankruptcy resulting in a total loss for its’ only two shareholders. Bruce and a friend founded the company on May 15, 2013, with each owning 50% of the outstanding shares. Both Bruce and his friend each initially contributed $25,000 in exchange for their 50% interest in the company.

Bruce and Alice earned $2,500.00 interest income from savings in 2016.

Bruce earned $3,000 in interest income from US Treasury Bonds in 2016.

On October 18, 2016, Bruce received $1,500 of dividend income from JP Morgan Chase Stock, which he purchased on September 01, 2016.

On November 15, 2016, Bruce sold some of his JP Morgan Stock for $48,000, which he purchased on July 01, 2015 for $38,000.

Bruce was named as the sole beneficiary on his late mother’s life insurance policy, and on December 31, 2016, Bruce received a check for $100,000 from the insurance company, which he held and deposited on January 02, 2017.

On June 13, 2016, Bruce sold 1,000 shares Citibank Stock for $25,000. He purchased the stock on May 17, 2015 for $24,000.

On November 04, 2016, Alice received a settlement award for injuries sustained in 2015. The settlement award included the following amounts:

Reimbursements of medical expenses which were not deducted on previous tax returns $10,000

Loss income $15,000

Punitive damages $30,000

Compensatory relating to a broken leg $25,000

On October 15, 2016, the truck purchased by Bruce and used exclusively for the business was totally destroyed in an auto accident. Bruce sued the driver of the automobile and received a damage award in December 2016 of $30,000. Bruce used the money to invest in the stock market. Since 2016 was the year of acquisition, no depreciation on the truck was previously taken.

On November 03, 2016, Bruce determined that a personal loan to a friend was uncollectible because his friend had recently and unexpectedly died. The amount of the loan was $4,200.

Bruce collected $8,000.00 per month for three months (October – December) in rental income on 581 Atlantic Avenue. For 2016 Bruce paid mortgage interest of $5,000 and real estate taxes of $5,750.00. Bruce paid no other expenses in 2016 for 581 Atlantic Avenue. The property was placed in service on October 01, 2016.

Other Rental Income and Expenses included:

Pinebrook Property Avenue A Property

Rental Income $35,000.00 $72,000.00

Mortgage Interest Expense $10,000.00 $12,000.00

Real Estate Taxes $6,000.00 $9,000.00

Utilities $2,000.00 $3,000.00

Insurance $1,000.00 $2,000.00

Water & Sewer $1,200.00 $1,500.00

Place in Service 01/01/2006 01/01/2016

Purchase Price $449,000.00 805,000.00

Bruce and Alice 2016 W-2 statement shows the following wages and withholdings:

Alice Bruce

Wages $65,000 $30,000

FWT 12,500 8,000

SWT 7,000 5,000

CWT 6,000 5,000

The Jones also paid the following personal expenses in 2016:

Contributions to Museum of Modern Art:

Cash $55,000

JP Morgan Chase Stock -FMV $60,000 (Long Term) -A/B $45,000

Real Estate Taxes on primary residence $14,000

Mortgage Interest on primary residence $20,000

Unreimbursed medical expenses $17,000

Student loan Interest $3,000

Instructions: Make realistic assumptions about any missing or inconsistent data and state your assumptions on a separate typed schedule.

Required:

Prepare form 1040, including all schedules and forms for 2016. (Do not prepare NYS or NYC tax returns).

All work must be typed onto approved IRS forms (no hand written forms will be accepted).

Read chapter 8 to determine how to handle depreciation/amortization and IRC section 179.

Only hand in the appropriate forms and schedules.

Scott and Kourtney Smith are married and have been clients ofFootem and Filem, LLP (F&F) for the past few years. Kourtney isan elementary school teacher. Scott owns a real estate business,Smith Realty, which he operates as a sole proprietorship. InFebruary of this year, Scott was trying to sell a very expensivehome to a buyer with very little credit history. The largecommercial banks that Scott’s buyers normally use to obtainmortgages refused to issue a loan to this buyer. However, Scott wasdetermined to make this sale happen so he could collect a salescommission amounting to $50,000. Scott has a friend named LarryBelfort who is a loan officer at a small bank in Tuscaloosa,Alabama. After his buyer was denied credit by several largecommercial banks, Scott agreed to “split” his commission 50/50 withLarry as long as Scott’s buyer could get a mortgage from the bankto complete the sale of the home. Larry agreed, but told Scott thatit would be illegal under Alabama law for him to accept the $25,000bribe. Instead, Larry asked that Scott donate the money to theUniversity of Alabama to establish a scholarship in Larry’s honor.Larry was already planning to donate $25,000 to the universityanyway, but this deal with Scott saved Larry the time and expenseof doing it himself. Based on the facts above, how much of the$25,000 donated to the University of Alabama, if any, can Scottdeduct for federal income tax purposes? In addition, how much ofthe $50,000 total sales commission must Scott recognize in grossincome for federal tax purposes? Assume you work for F&F andScott and Kourtney Smith are your clients. Prepare a brief researchmemo, complete with citations and analysis of primary authority, tosupport your conclusions. Remember that Scott and Kourtney are notprofessional tax preparers, so it is important that you explainyour position in a clear and concise manner that is not overlytechnical (i.e., do not copy and paste excerpts from primaryauthorities and call it a day).

Scott and Kourtney Smith are married and have been clients of Footem and Filem, LLP (F&F) for the past few years. Kourtney is an elementary school teacher. Scott owns a landscaping business, Smith Landscaping, which he operates as a sole proprietorship. Scott conducts all of his business affairs from an office he maintains in his home.

In 2005, Scott purchased an antique desk at an auction for $1,000. The desk was built in 1908 and crafted from rich mahogany. It once sat in the personal office of Ron Burgundy, a famous newscaster who often used the desk to read his extensive collection of leatherbound books. Scott gave the desk to his father as a birthday present in 2005.

In April of this year, Scott’s father passed away, leaving the antique desk to Scott. At the time of his father’s death, Scott learned that the desk’s fair market value had increased to $2,000 despite it having some minor damage that had accumulated over the years. Scott paid another $1,500 to have the desk professionally restored to its original working condition. According to a professional appraiser, the restoration raised the desk’s fair market value to $8,000. In honor of his father, who had originally given Scott the money to start his landscaping business, Scott put the antique desk in his home office and began using it exclusively for business purposes in May.

In June of this year, Scott purchased a new leather sofa for $1,000 and a new office chair for $800. Scott put the new sofa and chair in his home office and now uses them exclusively for client meetings. Scott would like to depreciate the desk, sofa, and chair for tax purposes, as he does for all of his business assets.

What is the maximum amount of depreciation Scott can claim for the current year for the desk, sofa, and chair

hello am shahzad  and i here to help you your homework and class note 

Assume that an individual consumes two goods, X and Y. The total utility of each good is independent of the rate of consumption of the other good.The price of X and Y are $40 and $60 respectively. Use the following table of total utilities to answer the following questions.

a. The marginal utility of the fourth unit of Y is __________.

b. The marginal utility of the fifth unit of X is ___________.

c. The marginal utility per dollar spent on the third unit of X is __________.

d. The marginal utility per dollar spent on the second unit of Y is __________.

e. If the consumer has $420 to spend, ______ unit of X and _______ units of Y maximize utility subject to the budget constraint. Explain.

f. If the consumer has $220 to spend, _______ units of X and _______ units of Y maximize utility subject to the budget constraint. Explain.

Assume that an individual consumes two goods, X and Y. The totalutility (assumed measurable) of each good is independent of therate of consumption of other good.
The price of X and Y are respectively $40 and $60. Use thefollowing table of total utilities to answer the followingquestions.

Good Total Utility of X Total Utility of Y
1 20 45
2 38 78
3 54 108
4 68 135
5 80 159
6 90 180

a. The marginal utility of the fourth unit of Y is__________.
b. The marginal utility of the fifth unit of X is___________.
c. The marginal utility per dollar spent on the third unit of X is__________.
d. The marginal utility per dollar spent on the second unit of Y is__________.
e. If the consumer has $420 to spend, ______ unit of X and _______units of Y maximize utility subject to the budget constraint.Explain.
f. If the consumer has $220 to spend, _______ units of X and_______ units of Y maximize utility subject to the budgetconstraint. Explain.
g. If the consumer wanted 4 units of X and 6 units of Y what wouldhave to be his/her budget constraint in order to maximize his/herutility? Explain.

Assume that an individual consumes two goods X and Y. The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $2 and $4.

If the consumer has $22 to spend on X
and Y, the utility-maximizing bundle is

If the consumer buys the fourth unit of X,

1. 4. Suppose a particular consumer has 8 birr to be spent on two goods, A and B. The unit price of good A is 2 birr and the unit price of B is 1 birr. The marginal utility (MU) she gets from
   
   consumption of the goods is given below.
   
   Quantity
   
   M*U_{A}
   
   M*U_{B}
   
   1
   
   36
   
   30
   
   2
   
   24
   
   22
   
   3
   
   20
   
   16
   
   4
   
   18
   
   12
   
   5
   
   16
   
   10
   
   6
   
   10
   
   4
   
   A) Based on the cardinal analysis, what is the combination of the two goods that gives maximum utility to the consumer?
   
   B) What is the total utility at the utility maximization level?

SHORT ESSAY QUESTION

Compare and contrast each of the four organic macromolecules:Carbohydrates, Lipids, Proteins, Nucleic Acids. Be sure to includethe following:

1) Explain how dehydration synthesis and hydrolysiswork.

2) What are the monomers of each of the 4macromolecules?

3) What are the polymers of each of the 4macromolecules?

4) Provide an example of each of the 4macromolecules.

5) What kinds of bonds hold the monomers together tomake a polymer? Name the 4 special bonds.

6) Give at least 2 functions of each kind ofmacromolecule.

7) Where can you find each macromolecule in acell?

Cells are the basic unit of life; however, they are verycomplex! Choose 10 organelles from the list below: You must chooseat least one from each of the 5 categories. Explain theirpurpose/function in the cell.

Hi I just joined this Digital Research panel on one of my pc's. Digital Research allows them to monitor what I am browsing. Anyway when I installed there installation file it works as expected. However when I launch Android Studio it complains about there certificate. See screenshot it's complaining that server certificate is not trusted? On my pc set Digital Reflection Ca certificate set to "Enable All purposes of this certificate". And I still get that message. I don't see that issue when I use Visual Studio. What else can I do?

SHORT QUESTIONS

Compare and contrast each of the four organicmacromolecules: Carbohydrates, Lipids, Proteins, Nucleic Acids. Besure to include the following:

1) Explain how dehydration synthesis and hydrolysiswork.

2) What are the monomers of each of the 4macromolecules?

3) What are the polymers of each of the 4macromolecules?

4) Provide an example of each of the 4macromolecules.

5) What kinds of bonds hold the monomers together tomake a polymer? Name the 4 special bonds.

6) Give at least 2 functions of each kind ofmacromolecule.

7) Where can you find each macromolecule in acell?

Paraphrase this equation

Part A: The expression that represents the amount of money the store made is (24)(35) + (15)(15) - 120.

Part B: To calculate the amount of money the store made, we need to find the total revenue from selling the keyboards and phone chargers and then subtract the cost of purchasing them. The revenue from selling 24 keyboards at $35 each is (24)(35) = $840, and the revenue from selling 15 phone chargers at $15 each is (15)(15) = $225. So the total revenue is $840 + $225 = $1065. Since the store bought the items for $120, we subtract that from the revenue to get the profit: $1065 - $120 = $945.

Part C: (24)(35) + (15)(15) - 120 = 840 + 225 - 120 = $945. Therefore, the value of the expression is $945, which represents the profit the store made from selling the keyboards and phone chargers.

use the following information to create a well organized and thoughtful information Paragraph.

Be sure to spend time selecting a category to focus f on

1. 10 warmest years in history all in last 15 years.

2. Severe weather events will be more frequent.

3. The sun heats the gases and keeps earth warm.

4. Canadian gas is 15% higher than 2000 then in 1990.

5.  20th century warmest century in 1000 years.

6. Global temperature expected to rise 1.4-5.8 degrees

7. We’re making more gases and more gas is being trapped in atmosphere.

BASED ON THOSE SEVEN POINTS ABOVE PLEASE WRITE A INFORMATION PARAGRAPH ABOUT THE GREENHOUSE EFFECT PLEASE MAKE SURE ITS AT A GRADE 12 UNIVERSITY LEVEL PLEASE

What are the requirement tools for painting?.

How can one launch a profitable online business and make money?

A:List two effects/impacts of completely writing off (depreciating) a tractor the year it is purchased?

B:Dustin purchased a new grain harvester using money from his operating loan. How would this affect his liquidity? What might it do to working capital and his current ratio?

1. Dustin purchased a new grain harvester using money from his operating loan. How would this affect his liquidity? What might it do to working capital and his current ratio?

2. True or False If the Debt/Equity ratio increases, the Debt/Asset ratio will also increase. Why or Why not?

6) if the current ratio increases from one year to the next, itdoes not necessarily follow that the amount of working capital willalso increase.

a_true

b)false

If a company’s acid-test ratio increases, its current ratio willalso increase?

TrueFalse

test if its worrking ?

Find y'' for

y = 8x⁴e^5x.

ØWhat happened to HRM beginning and growth in Ethiopia?

Title: Development of Human Resources Management in Ethiopian

       Introduction

—When and where did HRM is said to be started in Ethiopia?

— Purpose of HR in different era in Organizations

      HRM in Ethiopia

—Historical background,

—What were the nature and purpose of the HR during the beginning and now?

   Organization of HR in Ethiopia

—Nature of HRM in Private and Public Organizations,

—Legal grounds (regulations) of HRM in Organization

                         Success and Challenges,

                         Conclusion and Recommendation

With regard to the accounts used to record freight costs,

Freight-out is a contra account to Sales.

Freight-out is added to cost of goods sold.

Freight-out has a normal balance of credit

Freight-out is recorded when freight terms are FOB shipping point.

1. The tax benefit that the LIFOmethod provides might get nullified when:

a. unit costs tend to decrease as productionincreases.

b. unit costs tend to increase as productionincreases.

c. revenues are increasing faster than costs.

d. a fairly constant “base stock” is present.

2. Which of thefollowing statements is not true as it relates tothe dollar-value LIFO inven­tory method?

a. It is easier to erode LIFO layers usingdollar-value LIFO techniques than it is with specific goods pooledLIFO.

b. Under the dollar-value LIFO method, it ispossible to have the entire inventory in only one pool.

c. Several pools are commonly employed in using thedollar-value LIFO inventory method.

d. Under dollar-value LIFO, increases and decreasesin a pool are determined and measured in terms of total dollarvalue, not physical quantity.

3. LawsonManufacturing Company has the following account balances at yearend:

Officesupplies $ 4,000

Rawmaterials 27,000

Work-in-process 59,000

Finishedgoods 109,000

Prepaidinsurance 6,000

What amount should Lawson report as inventories in its balancesheet?

a. $109,000.

b. $113,000.

c. $195,000.

d. $199,000.

4. MaloneCorporation uses the perpetual inventory and the gross method. OnMarch 1, it purchased $80,000 of inventory, terms 2/10, n/30. OnMarch 3, Malone returned goods that cost $8,000. On March 9, Malonepaid the supplier. On March 9, Malone should credit

a. purchase discounts for $1,600.

b. inventory for $1,600.

c. purchase discounts for $1,440.

d. inventory for $1,440.

5. Bell Inc. took a physical inventory atthe end of the year and determined that $780,000 of goods were onhand. In addition, Bell, Inc. determined that $60,000 of goods thatwere in transit that were shipped f.o.b. shipping point wereactually received two days after the inventory count and that thecompany had $90,000 of goods out on consignment. What amount shouldBell report as inventory at the end of the year?

a. $780,000.

b. $860,000.

c. $870,000.

d. $930,000.

6. Risers Inc.reported total assets of $2,400,000 and net income of $320,000 forthe current year. Risers determined that inventory was overstatedby $24,000 at the beginning of the year (this was not corrected).What is the corrected amount for total assets and net income forthe year?

a. $2,400,000 and $320,000.

b. $2,400,000 and $344,000.

c. $2,376,000 and $296,000.

d. $2,424,000 and $344,000.

7. Hudson, Inc. is acalendar-year corporation. Its financial statements for the years2018 and 2017

contained errors as follows:

2018 2017

Endinginventory $9,000overstated $24,000 overstated

Depreciationexpense $6,000understated $18,000 overstated

Assume that the proper correctingentries were made at December 31, 2017. By how much will 2018income before taxes be overstated or understated?

a. $ 3,000 understated

b. $ 3,000 overstated

c. $ 6,000 overstated

d. $15,000 overstated

8. The followinginformation is available for Naab Company for 2017:

Freight-in $ 60,000

Purchasereturns 150,000

Sellingexpenses 460,000

Endinginventory 520,000

The cost of goods sold is equal to400% of selling expenses. What is the cost of goods available forsale?

a. $1,840,000.

b. $2,300,000.

c. $2,370,000.

d. $2,360,000.

9. Winsor Co. recordspurchases at net amounts. On May 5 Winsor purchased merchandise onaccount, $80,000, terms 2/10, n/30. Winsor returned $6,000 of theMay 5 purchase and received credit on account. At May 31 thebalance had not been paid.

The amount to be recorded as a purchase return is

a. $5,400.

b. $6,120

c. $6,000.

d. $5,880.

10. Niles Co. has the following data related to an item ofinventory:

Inventory, March1 400 units @ $2.10

Purchase, March7 1,400units @ $2.20

Purchase, March16 280 units @ $2.25

Inventory, March31 520units

The value assigned to ending inventory if Niles uses LIFO is

a. $1,160.

b. $1,104.

c. $1,092.

d. $1,168.

11. Niles Co. has the following data related to an item ofinventory:

Inventory, March1 400 units @ $2.10

Purchase, March7 1,400units @ $2.20

Purchase, March16 280 units @ $2.25

Inventory, March31 520 units

The value assigned to cost of goodssold if Niles uses FIFO is

a. $1,160.

b. $1,104.

c. $3,448.

d. $3,392.

12. Transactions for the month of June were:

Purchases Sales

June1 (balance) 3,200@$3.20 June 2 2,400 @ $5.50

3 8,800 @ 3.10 6 6,400 @ 5.50

7 4,800 @ 3.30 9 4,000 @ 5.50

15 7,200 @ 3.40 10 1,600 @ 6.00

22 2,000 @ 3.50 18 5,600 @ 6.00

25 800@ 6.00

Assuming that perpetualinventory records are kept in dollars, the ending inventory on aFIFO basis is

a. $16,440.

b. $16,640.

c. $17,160.

d. $17,880.

13. Farr Co. adopted thedollar-value LIFO inventory method on December 31, 2017. Farr'sentire inventory constitutes a single pool. On December 31, 2017,the inventory was $960,000 under the dollar-value LIFO method.Inventory data for 2018 are as follows:

12/31/18 inventory at year-endprices $1,320,000

Relevant price index at year end (base year2017) 110

Using dollar value LIFO, Farr's inventory at December 31, 2018is

a. $1,056,000.

b. $1,224,000.

c. $1,200,000.

d. $1,320,000.

14. Milford Company had 500units of “Tank” in its inventory at a cost of $4 each. Itpurchased, for $2,800, 300 more units of “Tank”. Milford then sold400 units at a selling price of $10 each, resulting in a grossprofit of $1,600. The cost flow assumption used by Milford

a. is FIFO.

b. is LIFO.

c. is weighted average.

d. cannot be determined from the informationgiven.

15. Checkers uses the periodic inventory system. For the current month,the beginning inventory consisted of 7,200 units that cost $12each. During the month, the company made two purchases: 3,000 unitsat $13 each and 12,000 units at $13.50 each. Checkers also sold12,900 units during the month. Using the average cost method, whatis the amount of cost of goods sold for the month?

a. $167,055.

b. $173,700.

c. $161,850.

d. $167,700.

16. The followinginformation was available from the inventory records of RichCompany for January:

Units UnitCost Total Cost

Balance at January1 9,000 $9.77 $87,930

Purchases:

January6 6,000 10.30 61,800

January26 8,100 10.71 86,751

Sales:

January7 (7,500)

January31 (11,100)

Balance at January31 4,500

Assuming that Rich does not maintain perpetualinventory records, what should be the inventory at January 31,using the weighted-average inventory method, rounded to the nearestdollar?

a. $47,270.

b. $46,067.

c. $46,170.

d. $46,620.

17. Black Corporation uses theFIFO method for internal reporting purposes and LIFO for externalreporting purposes. The balance in the LIFO Reserve account at theend of 2017 was $280,000. The balance in the same account at theend of 2018 is $420,000. Black’s Cost of Goods Sold account has abalance of $2,100,000 from sales transactions recorded during theyear. What amount should Black report as Cost of Goods Sold in the2018 income statement?

a. $1,960,000.

b. $2,100,000.

c. $2,240,000.

d. $2,520,000.

18. RF Company had January 1inventory of $300,000 when it adopted dollar-value LIFO. Duringthe

year, purchases were $1,800,000 and sales were $3,000,000. December31 inventory at year-end

prices was $430,080, and the price index was 112.

What is RF Company’s gross profit?

a. $1,248,000.

b. $1,294,080.

c. $1,330,380.

d. $2,605,920.

19. Hay Company had January 1inventory of $300,000 when it adopted dollar-value LIFO. Duringthe

year, purchases were $1,800,000 and sales were $3,000,000. December31 inventory at year-end

prices was $379,500, and the price index was 110.

What is Hay Company’s ending inventory?

a. $330,000.

b. $345,000.

c. $349,500.

d. $379,500.

20. Opera Corp. usesdollar-value LIFO method of computing its inventory cost. Data forthe past three years is as follows:

Yearended Inventoryat Price

December31. End-of-yearPrices Index

2016 $650,000 1.00

2017 1,260,000 1.05

2018 1,350,250 1.10

What is the 2018 inventory balance using dollar-value LIFO?

a. $1,350,250.

b. $1,285,000.

c. $1,227,500.

d. $1,257,750.

How do you reply to the following post? Please explain! Minimumof 150 words with references. Thank you in advance!

Inventory errors can cause the ending inventory balance to beincorrect, which in turn affects the cost of gods sold andprofits.Depending in how severe financial statement impact ofinventory errors of any company, it should be aware of the types oferrors may occur in their inventory system;such as incorrect unitcount,unit of measure,standard of cost, part number and just tomention some of them.If an inventory error has resulted in anincrease in the recorded amount of ending inventory, means that thecost of goods sold is downgraded, so the profits are downgraded aswell. Contrary, if an inventory error has resulted in a decrease inthe recorded amount of ending inventory, mean that the cost of soldis overstated, so the profits are overstated .

Inventory errors has an effect not only on the balance sheet butalso on reported income and cash flow or when the purchase priceand value of inventory change overtime. So to compute cost of goodssold and the cost of ending inventory still on hand , companies orbusiness must assign unit cost to their items and usethe follow inventory methods:

COGS= beginning inventory + purchases - endinginventory

If the price of a companies inputs is rising( such assteel,lumber)

FIFO method

COGS will be understated.

Income will be overstated.

The company will pay more income tax and have a lower cashflow.

Assets on the balance sheet will be more reflective of theactual market value.

Working capital and current ratio will be increased.

LIFO method

COGS will be more reflective of current market environment.

Income will be lower.

The company will pay less income tax and cash flow would behigher.

Assets would be understated and not reflective of its marketvalue.

Working capital and current ratio will be decreased.

Average cost method

Since its an average,it would be in between LIFO and FIFO

Specific identification method

If this method is used, its very difficult to tell, since eachproduct has been accounted for individually.Under FIFO,while thecompany will pay more in taxes, investors may overlook this due toincrease in income and working capital. Under LIFO, the lowerincome scenario may be only temporary and reverse in the nextreporting period when they sell the inventory that was acquiredbefore the rising price scenario.

Inventory includes goods awaiting sale,goods invarious stages of production and supplies,also inventory is acurrent asset.

In conclusion, inventory errors affect both the balance sheetand income statement and those Inventory errors arecounterbalancing over time.

Do you agree or disagree with following discussion post? Pleaseexplain! Minimum 0f 150 words with references. Thank you inadvance!

Inventory errors can cause the ending inventory balance to beincorrect, which in turn affects the cost of gods sold andprofits.Depending in how severe financial statement impact ofinventory errors of any company, it should be aware of the types oferrors may occur in their inventory system;such as incorrect unitcount,unit of measure,standard of cost, part number and just tomention some of them.If an inventory error has resulted in anincrease in the recorded amount of ending inventory, means that thecost of goods sold is downgraded, so the profits are downgraded aswell. Contrary, if an inventory error has resulted in a decrease inthe recorded amount of ending inventory, mean that the cost of soldis overstated, so the profits are overstated .

Inventory errors has an effect not only on the balance sheet butalso on reported income and cash flow or when the purchase priceand value of inventory change overtime. So to compute cost of goodssold and the cost of ending inventory still on hand , companies orbusiness must assign unit cost to their items and usethe follow inventory methods:

COGS= beginning inventory + purchases - endinginventory

If the price of a companies inputs is rising( such assteel,lumber)

FIFO method

COGS will be understated.

Income will be overstated.

The company will pay more income tax and have a lower cashflow.

Assets on the balance sheet will be more reflective of theactual market value.

Working capital and current ratio will be increased.

LIFO method

COGS will be more reflective of current market environment.

Income will be lower.

The company will pay less income tax and cash flow would behigher.

Assets would be understated and not reflective of its marketvalue.

Working capital and current ratio will be decreased.

Average cost method

Since its an average,it would be in between LIFO and FIFO

Specific identification method

If this method is used, its very difficult to tell, since eachproduct has been accounted for individually.Under FIFO,while thecompany will pay more in taxes, investors may overlook this due toincrease in income and working capital. Under LIFO, the lowerincome scenario may be only temporary and reverse in the nextreporting period when they sell the inventory that was acquiredbefore the rising price scenario.

Inventory includes goods awaiting sale,goods invarious stages of production and supplies,also inventory is acurrent asset.

In conclusion, inventory errors affect both the balance sheetand income statement and those Inventory errors arecounterbalancing over time.

1. Which proactive test would alert an investigator to apossible bid-rigging scheme?

Review of contact change orders

Review of competitive procurements

Review focused on the solicitation phase

Review similar bids

2. Which of the following will often occur when accounts payableliabilities are understated?

Purchases are understated and inventory is understated

Purchases are understated and inventory is overstated

Purchases are overstated and inventory is overstated

Purchases are overstated and inventory is understated

Bid Rigging

1.. What happened to Jimmy's Dimora house?

ØWhat happened to HRM beginning and growth in Ethiopia?

On January 4, 20Y6, Spandella Company purchased 84,000 shares ofFilington Company directly from one of the founders for a price of$38 per share. Filington has 300,000 shares outstanding, includingthe Spandella shares. On July 2, 20Y6, Filington paid $244,000 intotal dividends to its shareholders. On December 31, 20Y6,Filington reported a net income of $755,000 for the year. Spandellauses the equity method in accounting for its investment inFilington.

a. Journalize the Spandella Inc. entries forthe transactions involving its investment in Filington Companyduring 20Y6.

b. Determine the December 31, 20Y6, balance ofthe investment in Filington Company stock account.

Equity Method for Stock Investment

On January 15, 2014, National Star Inc. purchased 108,000 sharesof Krypton Labs Inc. directly from one of the founders for a priceof $50 per share. Krypton Labs has 300,000 shares outstanding,including the National Star shares. On July 2, 2014, Krypton paid$292,000 in total dividends to its shareholders. On December 31,2014, Krypton reported a net income of $1,009,000 for the year.National Star Inc. uses the equity method in accounting for itsinvestment in Krypton Labs.

Equity Method for Stock Investment On January 4, 2014, PenmanCompany purchased 124,000 shares of Hi Energy Company directly fromone of the founders for a price of $44 per share. Hi Energy has400,000 shares outstanding, including the Penman shares. On July 2,2014, Hi Energy paid $440,000 in total dividends to itsshareholders. On December 31, 2014, Hi Energy reported a net incomeof $800,000 for the year. Penman uses the equity method inaccounting for its investment in Hi Energy.

Paraphrase these notes

The following formula can be used to determine the liquid's density:

mass x volume equals density

Inputting the values provided yields:

density equals 6 g/30 mL.

By dividing the numerator and denominator of the fraction by 6, we may simplify it to:

density is 1 g/mL

As a result, the unknown liquid has a density of 1 g/mL.