Question: You are the head of the project

> Does Sec. 351 require shareholders to receive stock equal in value to the property transferred? Suppose Fred and Susan each transfer property worth $50,000 to Spade Corporation. In exchange, Fred receives 25 shares of Spade stock and Susan receives 75 sh

> Yellow Corporation donates the following property to the State University: ABC Corporation stock purchased two years ago for $18,000. The stock, which trades on a regional stock exchange, has a $25,000 FMV on the contribution date. Inventory with a $1

> Delta Corporation incorporates on January 7, begins business on July 10, and elects to have its initial tax year end on October 31. Delta incurs the following expenses between January and October related to its organization during the current year: a. W

> Gamma Corporation sold the following property on March 3 of the current year: The corporation used the equipment, building, and land in its business and has held all the property for more than one year. Aside from these transactions, Gamma had $720,000

> Young Corporation purchased residential real estate several years ago for $225,000, of which $25,000 was allocated to the land and $200,000 was allocated to the building. Young took straight-line MACRS deductions of $30,000 during the years it held the p

> In the current year, Kappa Corporation earned $1 million of net income before federal income taxes. This amount of book income includes a $100,000 expense for what the company considers an ordinary and necessary business expense. Kappa also deducted the

> Beta Corporation purchased 100 shares of Gamma Corporation common stock (less than 5% of the outstanding stock) two days before the ex-dividend date for $200,000. Beta receives a $10,000 cash dividend from Gamma. Beta sells the Gamma stock one week after

> Fawn Corporation, a C corporation, paid no dividends and recognized no capital gains or losses in the current year. What is its income tax liability assuming its taxable income for the year is a. $50,000 b. $14,000,000 c. $18,000,000 d. $34,000,000

> What is Beta Corporation’s income tax liability assuming its taxable income is (a) $94,000, (b) $300,000, and (c) $600,000. How would your answers change if Beta were a personal service corporation?

> Value Corporation is a calendar year taxpayer that uses the accrual method of accounting. On December 10 of the current year, Value accrues a bonus payment of $100,000 to Brett, its president and sole shareholder. Brett is a calendar year taxpayer who us

> X-Ray Corporation received a $100,000 dividend from Yancey Corporation this year. X-Ray owns 10% of the Yancey’s single class of stock. What tax issues should X-Ray consider with respect to its dividend income?

> John and Mary each exchange property worth $50,000 for 100 shares of New Corporation stock. Peter exchanges services for 98 shares of New stock and $1,000 in cash for two shares of New stock. Are the Sec. 351 requirements met? Explain why or why not. Wha

> Alice and Bill plan to go into business together. For the first two or three years of operations, they anticipate losses, which they would like to use to offset income from other sources. They also are concerned about exposing their personal assets to bu

> Susan Williams runs a small Flagstaff job shop where garments are made. The job shop employs eight workers. Each worker is paid $10 per hour. During the first week of March, each worker worked 45 hours. Together, they produced a batch of 132 garments. Of

> Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice.

> Lake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts instead. The plant is now able to produce 650 boxes per day.

> Munson Performance Auto, Inc., modifies 375 autos per year. The manager, Adam Munson, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year’s performance as a benchmark for fu

> Hokey Min’s Kleen Karpet cleaned 65 rugs in October, consuming the following resources: a) What is the labor productivity per dollar? b) What is the multifactor productivity? Labor: 520 hours at $13 per hour Solvent: 100 gallons a

> Lori Cook produces “Final Exam Care Packages” for resale by her sorority. She is currently working a total of 5 hours per day to produce 100 care packages. a) What is Lori’s productivity? b) Lori thinks that by redesigning the package, she can increase h

> This year, Druehl, Inc., will produce 57,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160 hours per month. If the labor productivity at the plant is 0.15

> Carbondale Casting produces cast bronze valves on a 10-person assembly line. On a recent day, 160 valves were produced during an 8-hour shift. a) Calculate the labor productivity of the line. b) John Goodale, the manager at Carbondale, changed the layout

> The activities needed to build a prototype laser scanning machine at Dave Fletcher Corp. are listed in the following table. Construct an AON network for these activities. IMMEDIATE IMMEDIATE ACTIVITY PREDECESSOR(S) ACTIVITY PREDECESSOR(S) A E B F B

> Using AOA, diagram the network described below for Lillian Fok’s construction project. Calculate its critical path. How long is the minimum duration of this network? TIME (WEEKS) TIME ACTIVITY NODES (WEEKS) ACTIVITY NODES 1-2 10 N

> Given the activities whose sequence is described by the following table, draw the appropriate activity-on-arrow (AOA) network diagram. a) Which activities are on the critical path? b) What is the length of the critical path? IMMEDIATE АCTIVITY PREDE

> Draw the activity-on-node (AON) project network associated with the following activities for Carl Betterton’s construction project. How long should it take Carl and his team to complete this project? What are the critical path activitie

> Refer to the table in Problem 3.3. a) Draw the AON network for the construction activity. b) Draw the AOA network for the construction activity. TIME (IN HOURS) PREDECESSOR(S) IMMEDIATE CODE ACTIVITY DESCRIPTION Planning Find location; determine re

> The City Commission of Nashville has decided to build a botanical garden and picnic area in the heart of the city for the recreation of its citizens. The precedence table for all the activities required to construct this area successfully is given. Draw

> Ranga Ramasesh is the operations manager for a firm that is trying to decide which one of four countries it should research for possible outsourcing providers. The first step is to select a country based on cultural risk factors, which are critical to ev

> Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity? b) Chuck and his employees have discussed redesigning the process to improve

> Marc, age 45, sells his personal residence on May 15, 2017, for $180,000. He pays $8,000 in selling expenses and $900 in repair expenses to help sell the residence. He has lived in the residence since 1992, when he purchased it for $55,000. In 1999, he p

> The Pear Corporation owns equipment with a $300,000 adjusted basis. The equipment was purchased six years ago for $650,000. If Pear sells the equipment for the selling prices given in the three independent cases below, what are the amount and character o

> Dillion whose taxable income is less than $300,000 has a tax rate of 33% on his ordinary income and $40,000 of net nonrecaptured Sec. 1231 losses at the start of the year. During the year, he recognizes a Sec. 1231 gain of $53,000 from the sale of land.

> Which of the following transactions or events is treated as a Sec. 1231 gain or loss? All assets are held for more than one year. a. Theft of uninsured diamond ring, with an $800 basis and a $1,000 FMV. b. Gain due to condemnation of land used in busin

> Vivian’s AGI is $40,000 without considering the gains and losses below. Determine her revised AGI after the inclusion of any applicable gains or losses for the following independent cases. Assume she has no nonrecaptured net Sec. 1231 l

> Lithuania Corporation operates a ferry service and owns four barges. Lithuania exchanges one of the barges with an adjusted basis of $350,000 for a used smaller barge with a FMV of $444,000 and a $26,000 computer. Without considering the exchange, Lithua

> Boise Corporation exchanges a machine with a $14,000 basis for a new machine with an $18,000 FMV and $3,000 cash. The machines are used in Boise’s business and are in the same General Asset Class. a. Determine Boise Corporation’s recognized gain and the

> Joseph Allen, who is single, purchased his first house in Orono, ME one year ago for $200,000. Katahdin wants to purchase the house for $360,000. Refer to the regulations to determine if he may exclude part of the gain in the following independent cases:

> Beach Corporation owns a computer with a $34,000 adjusted basis. The computer is used in the company’s trade or business. What is the realized and recognized gain or loss for each of the following independent transactions where the computer is exchanged

> The LaPoint Corporation placed in service $350,000 of used equipment (seven-year recovery property) on June 3, 2016 and elected to expense $250,000 as Sec. 179 depreciation expense. LaPoint sold the equipment for $150,000 on November 22, 2017. Determine

> Martin owns equipment used in his trade or business purchased four years ago for $200,000. Martin sells the equipment in the current year for $110,000 when its adjusted basis is $52,000. No other sales or exchanges are made this year or the preceding fiv

> Consider the following information for Mr. and Mrs. Di Palma: • On June 10, 2016, they sold their principal residence for $80,000 and incur $6,000 of selling expenses. The basis of the residence, acquired in 2006, is $50,000. • On June 25, 2016, they

> For the last five years, Mr. and Mrs. Cockrell rented their furnished basement to local college students. When determining their taxable income each year, they deducted a portion of the utilities, property taxes, interest, and depreciation based on the f

> Lina, an attorney, sold an antique rug for $45,000 that had been in her home. The rug cost Lina $12,000 several years ago. Lina collected $15,000 down and received a one-year interest bearing note for the balance. She is unable to collect the balance, an

> Leroy owns a truck used in his trade or business that cost $50,000 and has an adjusted basis of $34,000. The truck is exchanged for a new truck that is like-kind property with a FMV of $40,000. Prior to selling the new truck two years later, Leroy is all

> Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year, the properties are sold for $900,000 with 20% of the sel

> On January 10, 2017, Kirsten married Joe. Joe sold his personal residence on October 25, 2016, and excluded the entire gain of $175,000. Although they had originally planned to live in the house that Kirsten had received as a gift from her parents in 200

> Ace Construction Company sells a used crane to Go Construction for $80,000. The crane, which originally cost $900,000, is fully depreciated. Under Sec. 1245 depreciation recapture rules, the entire gain is taxable as ordinary income. Ace receives a down

> Mr. and Mrs. Rusbarsky purchased a residence on June 12, 2014, for $200,000. On March 12, 2017, they sell the residence for $300,000, and selling expenses amount to $11,000. They purchase another house in a new subdivision for $275,000. Determine the gai

> Determine the realized gain or loss, the recognized gain or loss, and the basis of the equipment received for the following like-kind exchanges: Basis of Equipment Exchanged FMV of Boot Received FMV of Equipment Received $20,000 45,000 60,000 70,000

> You work for the 3T company, which expects to earn at least 18 percent on its investments. You have to choose between two similar projects. The following chart shows the cash information for each project. Which of the two projects would you fund if the d

> You are one of three carpenters assigned to complete a short construction project. Right before the start of the project, one of your fellow carpenters was hospitalized and will not be available to work on the project. Develop a resource-constrained sc

> Given the time-phased work packages and network, complete the baseline budget form for the project. Soccer Toy Project 3 Order parts 2 1 2 Design prototype Build prototype Prepare production Assemble & test 2 3 4 Logond Launch ES ID EF Prepare

> Given the time-phased work packages and network, complete the baseline budget form for the project. 4 8 2 2 0A 4 4 10 6 Legend ES ID EF SL SL LS DUR LF 4 5 5 D 10 10 F 12 0B 5 5 10 10 2 12 5 5E 8 5 Cost by Week 2|2 A 10 10 10 10 B8 48 4 C 12 12

> Given the time-phased work packages and network, complete the baseline budget form for the project. Market Survey Project WBS Work Package Cost by Week WP Design 4 52 WP Survey 2 2 44 4 WP Report 3 3 2 Project Network 3 2 1 3 3 Design Survey Re

> Two new software projects are proposed to a young, start-up company. The Alpha project will cost $150,000 to develop and is expected to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual ne

> Given the network plan that follows, compute the early, late, and slack times. What is the project duration? Using any approach you wish (e.g., trial and error), develop a loading chart for resources Carpenters (C) and Electricians (E). Assume only one C

> Draw a project network from the following information. What activity (ies) is a burst activity? What activity (ies) is a merge activity? ID Description Predecessor A Order review None B Order standard parts Produce standard parts Design custom parts

> Draw a project network from the following information. What activity (ies) is a burst activity? What activity (ies) is a merge activity? ID Doscription Predecessor Survey site Excavate site None A B Install power lines Install drainage Pour foundat

> Given the information in the following lag exercises, compute the early, late, and slack times for the project network. Which activities on the critical path have only the start or finish of the activity on the critical path? Test Lag 3 Lag

> From the following information, compute the early, late, and slack times for each activity. Identify the critical path. /

> You are completing a group term paper. Given the project network that follows, complete the forward and backward pass, compute activity slack, and identify the critical path. Use this information to create a Gantt chart for the project. Be sure to show s

> You are the father or mother of a family of four (kids ages 13 and 15) planning a weekend camping trip. Develop a responsibility matrix for the work that needs to be done prior to starting your trip.

> A five-year project has a projected net cash flow of $15,000, $25,000, $30,000, $20,000, and $15,000 in the next five years. It will cost $50,000 to implement the project. If the required rate of return is 20 percent, conduct a discounted cash flow calcu

> You are the head of the project selection team at Broken Arrow records. Your team is considering three different recording projects. Based on past history, Broken Arrow expects at least a rate of return of 20 percent. Given the following information for

> Given the network plan that follows, compute the early, late, and slack times. What is the project duration? Using any approach you wish (e.g., trial and error), develop a loading chart for resources, Electrical Engineers (EE), and resource, Mechanical

> Use the basic accounting equation to answer these questions. (a) The liabilities of Lantz Company are $90,000 and the stockholders’ equity is $230,000. What is the amount of Lantz Company’s total assets? (b) The total assets of Salley Company are $170,00

> In alphabetical order below are balance sheet items for Karol Company at December 31, 2017. Prepare a balance sheet following the format of Illustration 1-7. Accounts payable………â€&brv

> Mathis Music Stands manufactures decorative wooden music stands for discriminating musicians. Each completed music stand contains 2.5 board feet of American cherry wood. In the process of matching the wood grain and cutting decorative scrollwork, 1.5 boa

> The following information relates to the operations of Favre Company: Finished Goods Inventory, beginning…………….$ 80,000 Finished Goods Inventory, ending…………………$ 50,000 Cost of goods available for sale…………………….$220,000 Required a. What was Favre’s cost

> Refer to Exercise 3-3. Sales revenue…………………$840,000 Variable expenses…………….630,000 Contribution margin…………210,000 Fixed expenses………………….112,000 Operating income…………….$ 98,000 Required: a. How many cakes will Julianna Abdallah have to sell if she wants t

> Manzoni Machine Works produces soft serve ice cream freezers. The freezers sell for $18,000, and variable costs total $12,300 per unit. Manzoni incurs $3,500,000 in fixed costs during the year. The company’s tax rate is 25%. Required: How many freezers

> Resilon, Inc., reported the following results for last year. Required a. Which division generates the highest margin? b. If the divisions are evaluated based on return on investment, which division is doing the best job? Liles Division Marston Divi

> Browning Design Works generated $300,000 in operating income on sales revenue of $2,000,000. The company had $2,200,000 in assets on January 1 and $2,800,000 in assets on December 31. Required: a. Calculate Browning’s margin. b. Calculate Browning’s ass

> Hannah’s House of Music wants to purchase TransposeIt, a system that transposes any song in its database and prints sheet music in the requested key. This system allows singers to obtain sheet music in keys that are suitable to their vocal range. The so

> Payton and Finley Davis run a real estate brokerage fi rm. They have just moved into a new building and want to add some outdoor digital signage to advertise the firm’s services. The sign they are considering has two display areas that can display two di

> Danny Bostic is evaluating a new ticketing system for his theater. The system will cost $275,000 and will save the theater $57,800 in annual cash operating costs. Danny expects the new system to last ten years, at which time the system will have a salvag

> Wyer’s Accounting Museum is exploring the purchase of a new building with a useful life of 15 years to use as its main gallery space. The building will cost $850,000. Once it has been purchased, the museum will terminate its current lease, which costs $6

> The Seago Company is planning to purchase $500,000 of equipment with an estimated seven-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year………………..Projected Cash Flows 1……………………………

> Parker is planning for his retirement this year. One option that has been presented to him is the purchase of an annuity that would provide a $60,000 payment each year for the next 15 years. Required: Calculate how much Parker should be willing to pay f

> Mighty Vita produces a wide range of herbal supplements sold nationwide through independent distributors. In response to an increasing demand for its products, the company is considering the purchase of a new packaging machine to replace the seven-year-o

> Caro-Lind Inc. manufactures personalized baby quilts. An experienced embroiderer can personalize 8 quilts per hour. Because the repetitive nature of the sewing can lead to carpal tunnel syndrome, workers take a 20-minute break after every 8 quilts. Befor

> Lybrand Company is a leading manufacturer of sunglasses. One of Lybrand’s products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Lybrand about purchasing 15,000 pairs of these sunglasses. Lybrand’s unit manufactur

> Graham Corporation has the excess manufacturing capacity to fill a special order from Nash, Inc. Using Graham’s normal costing process, variable costs of the special order would be $15,000 and fixed costs would be $25,000. Of the fixed costs, $4,000 woul

> The following list includes activities that are performed in a clothing store. Classify each activity as value-added or non-value-added. For each non-value-added activity, state whether it can be eliminated without jeopardizing the store’s operations. a.

> The following list includes activities that are performed in a physician’s office. Classify each activity as value added or non-value-added. For each non-value-added activity, state whether it can be eliminated without jeopardizing the office’s operation

> Refer to the data in exercises 7-7 and 7-9. Reference from Exercise 7-7: Eric Parker has been studying his department’s profitability reports for the past six months. He has just completed a managerial accounting course and is beginni

> Eric Parker has been studying his department’s profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company’s approach to allocating overh

> Smith Machining makes three products. The company’s annual budget includes $1,000,000 of overhead. In the past, the company allocated overhead based on expected capacity of 40,000 direct labor hours. The company recently implemented an

> Devaney Foods Company manufactures single-serve mustard packets used in fast-food restaurants. Al Devaney, the company’s CFO, prepared the following standard cost card for a box of mustard packets (100 packets in a box), based on expected production of 5

> Scott Sykes publishes a pilot training course curriculum kit that he sells to fl ight schools across the country. He prepared the following static budget for the year based on expected sales of 30,000 curriculum kits. Sales revenue……………………………………………..$3,

> Merkt Merchandise planned to produce 40,000 fleece jackets in its Metairie, Louisiana, factory. Fixed overhead costs for the factory were budgeted to be $520,000. The company actually spent $534,000 on fixed overhead and produced 38,000 jackets. Require

> Delectable Dish Printery publishes the best-selling Captain Cajun Cookbook that sells for $8. The company incurs variable costs of $3 per cookbook and total fixed costs are $300,000. Required: If the company’s tax rate is 25%, how many cookbooks must be

> The following information is available for Harrison’s Hot Dogs: Actual production…………………………………………..12,320 packages Budgeted production………………………………………12,500 packages Standard direct labor hours…………….1.5 direct labor hours per package Actual direct labor

> Buddie Paper Company produces specialty papers. During August, the company produced 50,000 reams of paper. The standard wage rate is $7.50 per hour, and each ream of paper requires 12 minutes of direct labor. The direct labor efficiency variance for Augu

> Holleyman Industries is a leading manufacturer of golf balls. Each golf ball requires 1 minute of direct labor time to complete. Holleyman used 7,200 direct labor hours in July to produce 420,000 golf balls. Holleyman’s standard labor rate is $9 per dire

> Workers at Banner News were paid a total of $33,400 during the month of July. The company’s standard wage rate was $8 per hour, and the direct labor rate variance for the month was $1,400 U. Required: How many direct labor hours were worked during July

> Pochard Paints manufactures artist’s oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, and the standard labor rate is $9.00 per direct labor hour. In September, Pochard incurred 10,800 direct labor hours at a cost of $95,000 to pro

> ImpressMe Products embosses notebooks with school and corporate logos. Last year, the company’s direct labor payroll totaled $352,100 for 50,300 direct labor hours. The standard wage rate is $6.75 per direct labor hour. Required: Calculate ImpressMe’s d

> Pelligrini, Inc. makes high-quality swimsuits. During the year, the company produced 800 suits, using 1,025 yards of material, and the company purchased 900 yards of material for $4,482. The direct materials standard for the swimsuits allows 1.2 yards of

> TechSolvers produces 8-foot USB cables. During the past year, the company purchased 500,000 feet of plastic coated wire at a price of $0.25 per foot. The direct materials standard for the cables allows 8.5 feet of wire at a standard price of $0.23. Durin