nd Report ptable if lease i deprecia method, xcept on ement. basis, ARUTO e year: 0700...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
nd Report ptable if lease i deprecia method, xcept on ement. basis, ARUTO e year: 0700 asis ,000 000 000 000 000 EO Selling Price Downpayment Installment: Problem 1. INSTALLMENT REPORTING Mona is a dealer of both brand new and second hand cars. Aside from cars, she also deals with lots and house and lots as a broker from various realtors for a fee. In 2018, she had the following data: Sale of brand new cars Cost Sale of second-hand cars December 2018 December 2019 December 2020 December 2021 December 2022 Selling Price Trade-in Received Mortgage Assumed Cost Downpayment Installment: December 2018 December 2019 December 2020 December 2021 December 2022 a. b. REQUIREMENTS: 1. Total reportable income in 2018 2. For Car 1, solve for: Contract Price Initial Payments C. Reportable income in 2018 d. Reportable income in 2019 e. Reportable Income in 2020 f. Reportable income in 2021 g. Reportable income in 2022 3. For Car 4, compute the: Contract Price a. b. Initial Payments C. Reportable income in 2018 d. Reportable income in 2019 Reportable Income in 2020 e. f. Reportable income in 2021 g. Reportable income in 2022 CAR 1 1,200,000 340,000 50,000 270,000 270,000 270,000 1,000,000 CAR 3 1,870,000 250,000 870,000 340,000 20,000 130,000 130,000 130,000 1,000,000 CAR 2 2,300,000 150,000 50,000 525,000 525,000 525,000 525,000 1,580,000 CAR 4 2,810,000 250,000 1,300,000 150,000 10,000 275,000 275,000 275,000 275,000 1,050,000 4. If Mona is not a dealer of cars, compute the total reportable income in 2018. Problem 2. ACCOUNTING FOR LONG-TERM CONTRACTS VCDC Engineering, a contractor, is one of the many clients of Mona which constructs special project per customer's request. The company showed to you the following data in 2018: Contract Price Terms: Mobilization fee Downpayment Upon 35% Completion Upon 73% Completion Upon 94% Completion Upon 100% Completion Total Costs incurred-to-date: 2018 (34% Completed) 2019 (76% Completed) 2020 (94% Completed) 2021 (100% Completed) Cost to complete: 2018 (34% Completed) 2019 (76% Completed) 2020 (94% Completed) 2021 (100% Completed) Project 1 5,535,000 5% 10% 25% 25% 25% 10% 100% 2,367,855 3,584,282 4,001,628 4,122,311 1,074,650 781,000 117,000 REQUIREMENTS: 1. For Project 1, compute the following: Reportable income in 2018 a. b. Reportable income in 2019 C. Reportable income in 2020 d. Reportable income in 2021 2020 2021 2. For Project 2, compute the following: a. Reportable income in 2018 b. Reportable income in 2019 c. Reportable income in 2020 d. Reportable income in 2021 Project 2 7,321,000 7% 10% 30% 20% 13% 20% 100% 3,742,333 4,512,404 5,075,617 5,863,110 3,258,210 2,140,224 1,033,628 Problem 3. ACCOUNTING FOR FARMING BUSINESS DEF Company is engaged in breeding calves to become milking cows. It then sells mature cows to interested buyers, particularly those engaged in dairy farming. The company normally waits over two years for calves to become milking cows. For the year 2021, it has the following data: Sales of 200 milking cows (born 2 years ago) Cost to sell milking cows Cost paid to birth 300 calves (June 2021) Cost of feeds and vitamins for newly born calves Cost incurred for the 200 milking cows sold: Market value of the 300 calves by December 31, 2021 0 2,500,000.00 1,600,000.00 3,475,000.00 Required: 1. Using cash basis, compute the reportable income of DEF Company in 2021. 8,500,000.00 64,000.00 345,600.00 560,000.00 2. Using accrual basis, compute the reportable income of DEF Company in 2021. nd Report ptable if lease i deprecia method, xcept on ement. basis, ARUTO e year: 0700 asis ,000 000 000 000 000 EO Selling Price Downpayment Installment: Problem 1. INSTALLMENT REPORTING Mona is a dealer of both brand new and second hand cars. Aside from cars, she also deals with lots and house and lots as a broker from various realtors for a fee. In 2018, she had the following data: Sale of brand new cars Cost Sale of second-hand cars December 2018 December 2019 December 2020 December 2021 December 2022 Selling Price Trade-in Received Mortgage Assumed Cost Downpayment Installment: December 2018 December 2019 December 2020 December 2021 December 2022 a. b. REQUIREMENTS: 1. Total reportable income in 2018 2. For Car 1, solve for: Contract Price Initial Payments C. Reportable income in 2018 d. Reportable income in 2019 e. Reportable Income in 2020 f. Reportable income in 2021 g. Reportable income in 2022 3. For Car 4, compute the: Contract Price a. b. Initial Payments C. Reportable income in 2018 d. Reportable income in 2019 Reportable Income in 2020 e. f. Reportable income in 2021 g. Reportable income in 2022 CAR 1 1,200,000 340,000 50,000 270,000 270,000 270,000 1,000,000 CAR 3 1,870,000 250,000 870,000 340,000 20,000 130,000 130,000 130,000 1,000,000 CAR 2 2,300,000 150,000 50,000 525,000 525,000 525,000 525,000 1,580,000 CAR 4 2,810,000 250,000 1,300,000 150,000 10,000 275,000 275,000 275,000 275,000 1,050,000 4. If Mona is not a dealer of cars, compute the total reportable income in 2018. Problem 2. ACCOUNTING FOR LONG-TERM CONTRACTS VCDC Engineering, a contractor, is one of the many clients of Mona which constructs special project per customer's request. The company showed to you the following data in 2018: Contract Price Terms: Mobilization fee Downpayment Upon 35% Completion Upon 73% Completion Upon 94% Completion Upon 100% Completion Total Costs incurred-to-date: 2018 (34% Completed) 2019 (76% Completed) 2020 (94% Completed) 2021 (100% Completed) Cost to complete: 2018 (34% Completed) 2019 (76% Completed) 2020 (94% Completed) 2021 (100% Completed) Project 1 5,535,000 5% 10% 25% 25% 25% 10% 100% 2,367,855 3,584,282 4,001,628 4,122,311 1,074,650 781,000 117,000 REQUIREMENTS: 1. For Project 1, compute the following: Reportable income in 2018 a. b. Reportable income in 2019 C. Reportable income in 2020 d. Reportable income in 2021 2020 2021 2. For Project 2, compute the following: a. Reportable income in 2018 b. Reportable income in 2019 c. Reportable income in 2020 d. Reportable income in 2021 Project 2 7,321,000 7% 10% 30% 20% 13% 20% 100% 3,742,333 4,512,404 5,075,617 5,863,110 3,258,210 2,140,224 1,033,628 Problem 3. ACCOUNTING FOR FARMING BUSINESS DEF Company is engaged in breeding calves to become milking cows. It then sells mature cows to interested buyers, particularly those engaged in dairy farming. The company normally waits over two years for calves to become milking cows. For the year 2021, it has the following data: Sales of 200 milking cows (born 2 years ago) Cost to sell milking cows Cost paid to birth 300 calves (June 2021) Cost of feeds and vitamins for newly born calves Cost incurred for the 200 milking cows sold: Market value of the 300 calves by December 31, 2021 0 2,500,000.00 1,600,000.00 3,475,000.00 Required: 1. Using cash basis, compute the reportable income of DEF Company in 2021. 8,500,000.00 64,000.00 345,600.00 560,000.00 2. Using accrual basis, compute the reportable income of DEF Company in 2021.
Expert Answer:
Answer rating: 100% (QA)
Selling Price Installment December 2018 December 2019 December 2020 December 2021 December 2022 Car ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Discuss the key features of the following associated with the financial service industry: Financial products and services of the organisation Financial agency agreements Financial industry codes of...
-
A theatre can seat 150 people. If all the seats are sold, the price of a ticket to a show is $50. For every seat not sold, the price of a ticket goes up by $1.50 dollar. Let x represent the number of...
-
If Euros sell for $1.50 per euro, what should dollars sell for in Euros per dollar?
-
Mobol, a wireless phone carrier, completed its first year of operations on December 31, 2013. All of the 2013 entries have been recorded, except for the following: a. At year-end, employees earned...
-
Sunshine State Fruit Company sells premium-quality oranges and other citrus fruits by mail order. Protecting the fruit during shipping is important, so the company has designed and produces shipping...
-
Bert C. Roberts Jr. was chairman of WorldComs board of directors. Immediately before that, he had been chairman of MCI, which WorldCom acquired on September 14, 1998, in a transaction valued at...
-
Analysis of Given Ratios Robbins Company is a wholesale distributor of professional equipment and supplies. The company?s sales have averaged about $900,000 annually for the 3-year period 2009?2011....
-
Direct Materials Conversion Percent Percent Units Complete Beginning work in process inventory 2,800 100% Complete 25% Units started this period 6,800 Completed and transferred out 7,800 Ending work...
-
Amy Torbert operates Hollins Riding Academy. The academy's primary sources of revenue are riding fees and lesson fees, which are paid on a cash basis. Amy also boards horses for owners, who are...
-
47. Solve the quadratic function: x - 9x = 0 A) 0 only B) 0 and 3 C) 0 and -3 D) 0 and 9 48. The factors of x + 3x 18 are which of the following? A) (x-3) and (x + 6) B) (x 3) and (x - 6) C) (x+3)...
-
2. Convert 9210 to Binary, Octal and Hexadecimal using repeated division. Show your work. Answer: Binary: Octal: Hexadecimal:
-
The purpose of this project is to demonstrate your grasp of the concepts you have learned throughout the course and your ability to analyze the financial standings and history of a company. You...
-
B. Given a universal set of name strings as: Ali, Alan, Alice, Barb, Bob, Ben, Christie, Cora, Don, Dora, Fred, arranged in alphabetic order. Give a bit string representation of the following sets:...
-
what is the equation to represent the total cost? Units Cost High Activity Level 11,000 $14,800 Low Activity Level 7,000 $11,300 Change 4,000 $3,500 Unit Variable cost 0.875 Fixed cost 5175
-
John and Kent share profits and losses of 60% and 40%, respectively. The tax basis of each partner's interest in the partnership as of December 31, Year 1, was as follows: John $24,000 Kent 18,000...
-
Sandhill Bottle Shop has two divisions, Wine and Beer. The sales mix is 70% Wine and 30% Beer. Sandhills annual fixed costs are estimated at $342000. The average selling price in the Wine division is...
-
All of the following assets can be depreciated, except: (a) A bulldozer (b) A copper mine (c) A surgical robot (d) A conveyor belt
-
Olive Corporation was formed and began operations on January 1, 2012. The corporation's income statement for the year and the balance sheet at year-end are presented below. The corporation made...
-
Karim Depak received a Form 1099-B showing the following stock transactions and basis during 2012: None of the stock is qualified small business stock. Calculate Karim's net capital gain or loss...
-
Emily Jackson (Social Security number 765-12-4326) and James Stewart (Social Security number 466-74-9932) are partners in a partnership that owns and operates a barber shop. The partnership's first...
-
Let \(Y\) be distributed according to the beta \((1510)\) distribution. (a) Find \(\mathrm{E}[Y]\). (b) Find \(\operatorname{Var}[Y]\). (c) Find \(P(Y <5)\) using the normal approximation.
-
A city is considering building a new museum. The local paper wishes to determine the level of support for this project, and is going to conduct a poll of city residents. Out of the sample of 120...
-
Sophie, the editor of the student newspaper, is going to conduct a survey of students to determine the level of support for the current president of the students' association. She needs to determine...
Study smarter with the SolutionInn App