Debited in receipts and payments account.
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Solution :
In the context, the relevant tax issues are :
1. The transfer to be subjected to tax deferred treatment under 351. It is a tax issue for transaction.
2. Kathleen receives stock in the exchange of the property transferred.
3. Receipt of the stock that is a gift from her mother is a relevant tax issue.
4. If Kathleen is not the transferor of the property and Kathleen receives the stock from the corporation, the transaction will be qualify as non taxable under 351.
5. Stocks received by Kathleen and Nancy is a taxable and so it is relevant to the tax issue.
6. The property in the hands of a corporation is always a tax issue.
7. The deductions that is allowed when the transfer of the stock for the rendering services for Kathleen.
8. The transfer of the stock is considered as gift to Kathleen by Nancy is a taxable transaction, so it is a relevant tax issue.
Answer:
Labor Rate Variance:
= Actual direct labor hours × (per actual direct labor hour price - per Standard direct labor hour price)
= 368 × (16.50 - 15)
= $552 U
Labor Efficiency Variance:
= Per Standard direct labor hour price × (Actual direct labor hours - Standard direct labor hours)
= 15 × (368 - 400)
= $480 F
The journal entry to record labor variances is:
Work in process A/c Dr. $6000
Labor rate variance A/c Dr. $552
To Labor efficiency variance $480
To Payroll $6,072
(To record labor variances)
Answer:
The gross margin is $24,200
Explanation:
The computation of the gross margin is shown below:
As we know that
Gross margin is
= Sales - cost of goods sold
= $57,000 - $32,800
= $24,200
We simply deduct the cost of goods sold from the sales so that the gross margin could come
hence, the gross margin is $24,200
We simply applied the above formula
