Charlie Davis wants to make a $20,000 charitable contribution to the United Way to support the financial literacy program. Although he does not have the cash available, he is thinking about selling an investment and donating the proceeds. He owns 1,000 shares of XYZ stock (FMV $20,000; A/B $12,000) that he purchased six months ago and 500 shares of ABC stock (FMV $20,000; A/B $6,000) that he purchased two years ago. Both companies are listed on the New York Stock Exchange. Charlie Davis expects his adjusted gross income to be $75,000 (from his company pension, social security, and other investments). Assume he does not plan to sell any other capital assets during the year (2013). Charlie Davis expects the investments to yield similar returns in the future, and he is not partial towards keeping either stock. What should he do? What documentation is required to support the charitable contribution?,,please cite using the authoritative codes
Bernadette, a longtime client of yours, is an architect and the president of the local Rotary chapter. To keep up to date with the latest developments in her profession, she attends continuing education seminars offered by the architecture school at State University. During2012, Bernadette spends $2,000 on course tuition to attend such seminars. She also spends another $400 on architecture books during the year. Bernadette’s son is a senior majoring in engineering at the University of the Midwest. During the 2012 calendar year, Bernadette’s son incurs the following expenses $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Bernadette’s son, whom she claims as a dependent, lives at home while attending school full-time. Bernadette is married, files a joint return, and has a combined AGI with her husband of $103,000.,Prepare 2011 form 8863. Create tax payers last name and social security number. Assume that the son is the only dependent and that they do not itemize.,
What exactly are the basic requirements of OSHA for employers and what are the penalties for noncompliance?
What can be done to make the workplace healthier and safer?
If you were a small business owner, how would you sell the benefits of working at your company over a larger firm with more financial resources?
TCO E) The four types of accounting changes, including error correction, are , change in accounting principle;, change in accounting estimate;, change in reporting entity; and, error correction.,,,,,Required: ,The following are a series of situations. Indicate the type of change ,1 Changing the companies included in combined financial statements,2 Change in both estimate and acceptable accounting principles,3 Change from presenting nonconsolidated to consolidated financial statements,4 Change from FIFO to LIFO inventory procedures,5 Change in amortization period for an intangible asset,6 Change due to failure to recognize an accrued (uncollected) revenue,7 Change due to charging a new asset directly to an expense account,8 Change due to understatement of inventory,9 Change from straight-line to sum-of-the-years’-digits method of depreciation,10 Change in residual value of a depreciable plant asset,11 Change in the loss rate on warranty costs,12 Change in life of a depreciable plant asset,13 Change due to failure to recognize and accrue income,14 Change in expected recovery of an account receivable,15 Change from expensing to capitalizing certain costs, due to a change in periods benefited (Points : 15) ,
Dwayne saw the following information in an accounting report:,,Motor Vehicle $40,000 ,Less Accumulated Depreciation Motor Vehicle 12,000, ,He believes that this means that if it was sold on that day, the vehicle should have achieved a price of about $28,000.,,Is Dwayne correct? Justify your answer by explaining what is meant by the term depreciation, the role and process of recognising depreciation in accounting reports, and by identifying the accounting concepts that provide the justification for recognising depreciation.,
Mystical Corporation found the following errors in their year-end financial statements:, As of Dec. 2012 As of Dec. 2013, Ending Inventory $32,000 understated $46,000 overstated, Depreciation Exp. $7,000 understated ,On December 31, 2013, a fully depreciated machine was sold for $35,000 but the sale was not recorded until January 15, 2014 when the cash was received. In 2012, a three-year insurance premium was prepaid for $45,000 of which the entire amount was expensed in the first year. ,There were no other errors or corrections. Ignore any tax considerations. ,What is the total net effect of errors on Mystical’s 2013 net income? (Points : 5) , Working capital overstated by $31,000, Working capital overstated by $11,000, Working capital understated by $4,000, Working capital understated by $36,000,
As of January 1, 2011, Survival Industries, Inc. purchased a boat at a cost of $360,000. ,When purchased, the company was using the double-declining depreciation method. ,Key info on the asset at time of purchase is the following. , Estimated useful life is 6 years., Residual Value is $0.,At the beginning of 2014, the CFO decided to change to straight-line depreciation method. ,Compute the depreciation expense for 2014. (Points : 5) , $35,556, $10,667, $60,000, $120,000,