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ACCT 429 DeVry Final Exam

ACCT 429 DEVRY WEEK 8 FINAL EXAM

ACCT 429 DeVry Week 8 Final Exam

1.(TCOs 2, 3, and 5) We learned this semester that not only do we have to determine the amount of income that a taxpayer must recognize for tax purposes, but we also need to determine the type or character of income that is recognized. As we know, this may depend on the type of transaction that generated the income at issue. Explain the general types or categories of income that exist under the Code (e.g., ordinary), and how the amount of each type of income is calculated and taxed under the Code, including what rates may apply.(Points : 25)

Question 2.2.(TCOs 2, 4, and 5) This semester, we learned that Congress designed the Code to include various deductions from income. (NOTE: We are not discussing the deductions that may arise from losses.) There are two deductions that are particularly important to corporations:

(1) the Section 162 deduction for business expenses and

(2) the dividend-received deduction. How does the IRS generally interpret deductions (i.e., broadly or narrowly)?

How do we determine whether a taxpayer is entitled to each of these two deductions?

What is the purpose of each of these deductions?

How is each calculated, and are there any limits on the deduction?

Finally, what generally governs when a taxpayer may take each of these two deductions? (Points : 25)

Question 3.3.(TCOs 2, 5, 6, and 7) As a tax ACCT429Week8FinalExam practitioner, you often get people asking questions concerning the tax effect of property transactions. This year is no exception. You’ve ACCT 429 Week 8 Final Exam had individual clients ask you the following questions: I had some business property that was destroyed by a fire. I received payment on the property by the insurance company equal to the full fair market value of the property, which was higher than its adjusted basis. I took the insurance proceeds and purchased a new piece of property, but the property purchased cost less than the amount of the payment from the insurance company.

My corporation sold some depreciable property (a machine) this year. The amount realized on the transaction was higher than the adjusted basis of the property after taking depreciation into account. How will the corporation account for this gain? Would it have been any different if the property was sold by me as an individual instead of the corporation?

Answer each of these questions, explaining the rules that apply to each property transaction and the possible tax consequences of each. (Points : 50)

Question 4.4.(TCOs 2, 3, and 4) One of your corporate clients has approached you about whether or not its employees are required to include certain benefits provided by the corporation in their income. In particular, the corporation has inquired whether the following benefits provided by the corporation to employees would be included in an employee’s taxable income:

I. The employer ACCT 429 DeVry Final Exam would like to provide a holiday present to each employee at the end of December. It envisions providing gift cards, including a gift card for dinner at a local restaurant and a gift card for an electronics store. It also plans on providing each employee a $150.00 holiday bonus in a separate check.

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ACCT 304 Midterm Exam

ACCT 304 DEVRY MIDTERM EXAM

ACCT 304 DeVry Week 4 Midterm Exam

1. (TCO 1) Which of the following has the authority to set accounting standards in the United States?

2. (TCO 2) The conceptual framework’s qualitative characteristic of faithful representation includes:

3. (TCO 3) A sale on account would be recorded by:

4. (TCO 3) When a tenant makes an end-of-period adjusting entry credit to the “Prepaid rent” account:

5. (TCO 3) Permanent accounts would not include:

6. (TCO 4) Noncurrent assets include:

7. (TCO 4) The acid-test ratio is also known as the:

8. (TCO 5) Popson Inc. incurred a material loss which was not unusual in character, but was clearly an infrequent occurrence. This loss should be reported as:

9. (TCO 5) On June 1, 2013, Romano Inc. changed the estimated useful life of its office equipment from 20 to 12 years. This change would be accounted for:

10. (TCO 5) In the operating activities section of the statement of cash flows, we start with net income:

11. (TCO 5) The Maytag Corporation’s income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings ACCT 304 Midterm Exam per share information would be provided for:

12. (TCO 5) Expenses in an income statement prepared under International Financial Reporting Standards:

13. (TCO 4) The balance sheet reports:

14. (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared?

1. (TCO 5) What would ACCT304DeVry be Misty’s net income for the current year?

2. (TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that ACCT 304 have yet to be closed. The installment receivables are current. Symphony uses

1. (TCO 4) Briefly explain the purpose of the disclosure note on significant accounting policies. Provide two examples of what might be found in this note.

2. (TCO 2) What is the SEC and how is it involved with accounting standard setting?

3. (TCO 5) Give an example of a non-cash financing and investing activity and explain when and how it would be reported in the financial statements

4. (TCO 3) Describe what is meant by unearned revenues and give two examples

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