kaplan AC507 week 5 assignment 1 and assignment 2

kaplan AC507 week 5 assignment 1 and assignment 2

Question # 00019016 Posted By: spqr Updated on: 07/04/2014 01:02 AM Due on: 08/21/2014
Subject Accounting Topic Accounting Tutorials:
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22. Lab Kennels, Inc. and Wolman Developers have agreed to exchange two parcels of land and each will assume the other’s mortgage on the parcel acquired. Lab owns 500 acres within city limits that has a value of $750,000 and a basis of $300,000. It is encumbered by $200,000 mortgage. Wolman’s property is raw land outside the city that has a value of $900,000, a basis of $400,000, and is encumbered by a $350,000 mortgage.

a. What are Lab Kennels, Inc. and Wolman Developer’s realized and recognized gains or losses on the exchange?

b. What are their deferred gains or losses?

c. What are their bases in the land acquired?



25.A tornado destroyed part of the offices of Heywood Corporation. The building had a fair market value of $500,000 before and $200,000 after the tornado. The basis of the building is $320,000.

a. What is Heywood’s casualty loss from the tornado?

b. What is its remaining basis in the property, assuming it deducts its loss?

c. What is Heywood’s gain or loss if it receives $250,000 from its insurance company as compensation for its loss?

d. What is its basis in the property if it spends $150,000 to repair the property?



64. Locate and print Form 4684. Enter the following information and complete the form to the extent possible: Howser Corporation, a calendar-year corporation discovered in January that its bookkeeper (who was fired late last year) had embezzled $45,000 from the company. The theft was not covered by insurance. In October, a hurricane damaged its warehouse building in the Florida Keys that it had used for several years. The building’s fair market values before and after the hurricane were $425,000 and $150,000, respectively. The basis of the building at the time of the damage was $235,000. Howser received only $200,000 from its insurance company due to its limited hurricane coverage.

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23.Whitlaw Corporation has $150,000 of gross profit on sales, operating expenses of $60,000, $4,000 dividend income from a 1 percent owned corporation, a $10,000 gain and $15,000 capital loss, a $15,000 Section 179 deduction, additional tax depreciation of $25,000 (total financial accounting depreciation is $22,000), a $5,000 charitable contribution, and a net operating loss carryover from the prior year of $10,000.What are Lab Kennels, Inc. and Wolman Developer’s realized and recognized gains or losses on the exchange?

a. What is Whitlaw’s taxable income?

b. What is Whitlaw's income tax?




60.Go to the IRS Web site (www.irs.gov) and print the first page of Form 1120. Using the following information, determine Chelsea Corporation’s tax owed or refund due using this form if it made estimated tax payments of $15,000.

Chelsea Corporation (34 Chelsea Drive, Sarasota, Florida 33456) is a calendar-year corporation; its EIN is 78-9999999 and it was incorporated on June 15, 2002. It reported the following for the current year:

Sales = $1,450,000 Pension Contributions = $28,000

Cost of Sales = $625,000 Meals and Entertainment = $12,000

Officers Compensation = $187,000 Utilities = $21,000

Salary and Wages = $266,000 Repairs/Maintenance = $14,000

Rent = $48,000 Vehicle Expenses = $34,000

Taxes = $87,000 Insurance = $30,000

Depreciation = $34,000 Employee Benefit Plans = $17,000




    

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    Tutorial # 00018455 Posted By: spqr Posted on: 07/04/2014 01:06 AM
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