QUESTION You are in your second year in the BCom program at York University and came back home for the summer. In past summers you have hold several part time jobs. In your spare time, you are a very active fundraiser for Paws Support and their international missions. You had the fundraising idea of operating a booth to sell soft drinks, coffee, croissants, and other […]

QUESTION During Year 1, Sarah invested $120,000 for a 10% interest in a business venture that is not subject to the passive activity rules. During the first year, her share of the entity’s loss was $130,000. At the beginning of the second year, the entity obtained recourse financing, Sarah’s share was $70,000. During the second year, Sarah withdrew cash of $15,000, and her share of […]

QUESTION A leased a building to B for a ten-year term at an annual rental of 200,000. At the inception of the lease, A received 800,000, which covered the first two years of rent of 400,000 and a security deposit of 400,000. This deposit will not be returned to B upon expiration of the lease but will be applied to the payment of rent for […]

QUESTION Luong Corporation, a calendar year, accrual basis corporation, reported $1 million of net income after tax on its financial statements prepared in accordance with GAAP. The corporation’s books and records reveal the following information: Luong’s federal income tax expense per books was $200,000. Luong’s book income included $10,000 of dividends received from a domestic corporation in which Luong owns a 25 percent stock interest, […]

QUESTION In most organizations: purchasing departments are responsible for acquiring inventory and fixed assets sales departments are responsible for selling inventory to customers accounts receivable departments are responsible for billing customers and collecting cash from customers accounts payable departments are responsible for paying for bills owed Which department would be most responsible for the ratio Days Sales Outstanding? ANSWER Analyzing the Significance of Days Sales […]

QUESTION 1. What is one significant difference between an employer’s regular loan to an employee and an employer’s home purchase or home relocation loan to an employee? o The principal is due in full on a regular loan at the end of a 5-year term o Any changes in the prescribed rate do not affect the regular loan for a 5-year period o The prescribed […]

QUESTION A sales agent has sales of $504834.3 last year and the sales plan for the upcoming year is $341056.5. What is the percentage incr/decr for the upcoming year? Note: Your answer should be given to one decimal point without a percentage sign. If it is a negative number then put a (-) before entering the number ie. -32.1 ANSWER Analyzing Sales Performance: Percentage Change […]

QUESTION Mr. And Mrs. Claus have two children. The ages of the children are 5 and 11. All the children are in good mental and physical health. During the current year, Mr. Claus has net employment income of $51000, after the deduction of employment expenses of $6,000. Mrs. Claus has net business income during this period of $80,000, after deducting business expenses of $15,000. The […]

QUESTION In prior years, Nazir was single and he was a qualifying child of his parents. This year Nazir, age 23 and a full-time student, got married. Nazir and his wife file a joint return. If they were to file separately, Nazir would report a $0 tax liability. Nazir’s wife would report a $200 tax liability. Nazir’s parents cannot claim him as a dependent this […]

QUESTION Pretzel Corporation owns 60 percent of Stick Corporation’s voting shares. On January 1, 20X2, Pretzel Corporation sold $155,000 par value, 8 percent first mortgage bonds to Stick for $160,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Required: Prepare the journal entries for 20X2 for Stick related to its ownership of Pretzel’s bonds. Prepare the journal […]