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nydimaria [60]
3 years ago
6

Gonzalez Company has two service departments, Maintenance and Human Resources. Gonzalez Company also has two production departme

nts, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees. The following information has been gathered for the current year.
Human Resources 6,000
Building Maintenance 13,000
Machining 18,000
Assembly 26,000

Assuming use of the direct method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread)?
Business
1 answer:
fiasKO [112]3 years ago
7 0

Answer: 44,000 square feet.

Explanation:

If we are assuming use of the direct method, we can find out how the building maintenance cost will be allocated using the following formula,

Building Maintenance cost square feet allocation = Square Footage of Machining + Square Footage of Assembly

Slotting in the figures we have,

= 18,000 + 26,000

= 44,000 square feet.

The Building Maintenance cost will be allocated over 44,000 square feet.

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The 1997 a value of an object was $5000. In 2012 , it was worth $9500. The annual percent growth has been constant. What is the
Mamont248 [21]
Given:
1997 - 5,000
2012 - 9,500

9,500 - 5,000 = 4,500
2012 - 1997 = 15 years

(9,500/5,000)^1/15  - 1
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3 years ago
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Janice is the sole owner of Catbird Company. In the current year, Catbird had operating income of $100,000, a long-term capital
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Answer / Explanation:

To answer this question considering the tax entity and how Janice will report this information on her individual tax return, We need to consider the fact that different tax entity are categorized by its unique report and information.

So to properly answer these question, we will have to assume three (3) different scenario which are: (1) Is it a Limited Liability Company, Is it a Small business corporation, Is it an AC Corporation.

We should also note that this segregation is need as each type of corporation tax are dealt with differently thus enabling us treat the question properly in respect to tax entity and as regards to how Janice will report the information on her individual tax return.

Consequentially,

a. If Catbird Company is an LLC: A single-member LLC is taxed as a proprietorship. Thus, Janice will report the $100,000 operating income (Schedule C), $15,000 long-term capital gain (Schedule D), and if she itemizes, $5,000 charitable contribution (Schedule A) on her tax return. The $70,000 withdrawal would have no effect on Janice's individual tax return.

b. If Catbird Company is an S corporation: An S corporation is a tax reporting entity (Form 1120S), and its income, gains, deductions, and losses are passed through to and reported by the shareholders on their tax returns. Separately stated items (e.g., long-term capital gain and charitable contribution) retain their character at the shareholder level. Consequently, Janice will report the $100,000 operating income (Schedule E), $15,000 long-term capital gain (Schedule D), and if she itemizes, $5,000 charitable contribution (Schedule A) on her tax return. The $70,000 withdrawal would have no effect on Janice's individual tax return.

c. If Catbird Company is a C corporation: A C corporation is a separate taxable entity, and its taxable income has no effect on the shareholders until such time a dividend is paid. When dividends are paid, shareholders must report dividend income on their tax returns. Thus, Catbird Company will report taxable income of $110,000 ($100,000 operating income + $15,000 LTCG - $5,000 charitable contribution) on its Form 1120. Corporations receive no preferential tax rate on long-term capital gains. Janice will report dividend income of $70,000 (Schedule B) on her individual tax return.

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3 years ago
Patrice and Patrick are twins. They sit down to discuss their college plans with their parents. If both choose an in-state schoo
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Answer: C or D

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Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60 comma 000 parts is
Fittoniya [83]

Answer:

$69,000

Explanation:

The computation of the operating income would be shown below:

= Buying cost - making cost

where,

Buying cost equals to

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And, the making cost would be

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Now put these values to the above formula  

So, the value would equal to

= $180,000 - $111,000

= $69,000

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3 years ago
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