How much of FTB?
Q: Why are CMOs overcollateralized?
A: CMO is the abbreviation used for collateralized mortgage obligation. It uses collaterals which are…
Q: What is full form of GAAP? Describe about it.
A: Generally Accepted Accounting Principles, are commonly known as GAAP
Q: What is the project’s PI?
A: The PI index the profitability index of the project. The shows the profitability of the project…
Q: What assumptions underlie the EOQ model?
A: The model that helps in calculating the optimal amount of quantity needs to be purchase for…
Q: What is IFRS?
A: In accounting and financial reporting there is need of international rules and regulations to create…
Q: What is LIFO?
A: Definition: Inventory cost flow methods: These are the methods used by the companies to compute the…
Q: Define Net realizable value.
A: Net realizable value is the expected cash to be received against a given asset. Thus, Net…
Q: What does PFMA stand for?
A: Solution- PFMS [Public Financial Management System] PFMS stands for Public financial Management…
Q: What is the project’s MIRR?
A: Rate of return is the expected result of any investment or project. It can be negative or positive.…
Q: How does the change in the PBO occur?
A: Projected Benefit Obligation: It is a pension concept in accounting as it is the present value of…
Q: What is the project's IRR?
A: Internal Rate of Return (IRR) is defined as the minimum rate of return that gives zero valuation to…
Q: ness document is it?
A: voucher is a backup documents which shows business transactions.
Q: What is the efficient frontier?
A: The term efficient frontier is used in relation to professor Harry Markowitz's Modern Portfolio…
Q: Explain MBBs and MPTs?
A: Mortgage-backed security: A mortgage-backed security is a kind of asset-backed security which is…
Q: Define net realization value?
A: Net realizable value means the amount that could be received after deducted all incidental expenses…
Q: What is CAPM? How about APT?
A: CAPM and APT are two common models for pricing used in finance. These are explained below.
Q: What are the key assumptions of the CAPM?
A: Introduction: The CAPM is an equilibrium model that stipulates the relationship between necessary…
Q: What is PNL?
A: The term PNL is used in accounting, finance, and business to refer profit and loss.
Q: What is the decision rule for NPV?
A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…
Q: What is GAAP and why it is needed?
A: GAAP - Generally Accepted Accounting Principles
Q: What is scalability?
A:
Q: What is hedging?
A: SOLUTION:- Hedging refers to shielding of investments. A hedge is an investment method which aims…
Q: What is GAAP?
A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…
Q: What is EPS and how is it calculated?
A: EPS is referred to as earning per share and is defined as portion of company's profit allocated to…
Q: What are the differences between GAAP and IFRS?
A: The companies are required to follow a set of guidelines and rules in the presentation of financial…
Q: What is the LIFO conformity rule?
A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…
Q: What are the CVP assumptions?
A:
Q: What is an LBO?
A: Leveraged buyout (LBO): It is another firm's takeover, employing a huge sum of borrowed capital to…
Q: What conditions increase the demand for reliable information?
A: Nowadays it is very difficult to trust someone. cheating and frauds have become so common. which…
Q: what is single index model?
A: Single index model refers to the asset pricing model that can be used to measure the risk and return…
Q: perating cycle?
A: Definition: Operating cycle: Days by which, a business can be able receive inventory or sell it or…
Q: What is skimming?
A: Skimming: It is the fraudulent process under which the employees of the company steal the cash from…
Q: What is the difference between the CML and the SML?
A: The term CML refers to capital market line. Whereas the term SML refers to security market line.
Q: What is the project's NPV
A: The NPV is one of the technique in the capital budgeting which is used in the project evaluation.…
Q: What is MM Proposition II?
A: MM Model determines and defines a relationship between the capital structure of the firms, the cost…
Q: What are the benefits and drawbacks of FIFO?
A: Introduction: First-in-First-Out: In First-in-First-Out method, the costs of the initially…
Q: How suboptimization can occur?
A: Sub-optimisation: It refers to the level of output that can arise from any inefficient or…
Q: What does RI measure?
A: Residual Income: Residual income is the income earn over the minimum rate return of the company. In…
Q: How can thepayback method be useful?
A: Meaning: The payback period is the time required to earn back the amount invested in a…
Q: RTN: What is its significance?
A: RTN is an abbreviation of Routing Transit Number, which is very important aspect in the banking as…
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- Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays 8,400 rent on April 1, 2019, for the 12 months ending March 31, 2020. a. How much is Shannas deduction for rent expense in 2019? b. Assume the same facts, except that the 8,400 is for 24 months rent ending March 31, 2021. How much is Shannas deduction for rent expense in 2019?How do the all events and economic performance requirements apply to the following transactions by an accrual basis taxpayer? a. The company guarantees its products for six months. At the end of 2019, customers had made valid claims for 600,000 that were not paid until 2020. Also, the company estimates that another 400,000 in claims from 2019 sales will be filed and paid in 2020. b. The accrual basis taxpayer reported 200,000 in corporate taxable income for 2019. The state income tax rate was 6%. The corporation paid 7,000 in estimated state income taxes in 2019 and paid 2,000 on 2018 state income taxes when it filed its 2018 state income tax return in March 2019. The company filed its 2019 state income tax return in March 2020 and paid the remaining 5,000 of its 2019 state income tax liability. c. An employee was involved in an accident while making a sales call. The company paid the injured victim 15,000 in 2019 and agreed to pay the victim 15,000 a year for the next nine years.During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If Inez has taxable income of 158,000, how much income tax results? b. If Inez has taxable income of 35,000, how much income tax results?
- A taxpayer receives $5,000 on their federal return in taxable unemployment income. What is the amount that must be subtracted from the state return to calculate the portion taxable to the State? A. Potentially a $5,000 subtraction. The amounts need to have been taxable on the federal return and administered by California's EDD to be excludable. Unemployment received from other states is still fully taxable in most cases. B. $5,000 subtraction - California does not include amounts received from any unemployment source in State income. C. $0 subtraction - The taxpayer may, however, claim a credit for the job search costs to reduce their taxable exposure to unemployment income. D. $0 subtraction - This is taxable income to the State.A sale of principal residence to purchase a new principal residence shall be exempt from tax of done: Once every 10 years and reported to BIR within 1 month from sale. Once every ten years and reported to BIR within 18 months from sale. Once every 10 years and reported to BIR within 2 months from sale. Once every 18 years and reported to BIR within 10 months from sale. Substituted filing of income tax returns is a manifestation of which principle of a sound tax system? Theoretical justice Fiscal adequacy administrative feasibility EqualityA-17. A taxpayer (civilian) was transferred by his employer from Miami to Los Angeles in 2022 and received $19,000 as reimbursement for his moving expenses. Generally speaking, which tax treatment does this reimbursement receive? (Best option) o The taxpayer receives the moving expense reimbursement entirely tax-free. The moving expense reimbursement is not taxable to the taxpayer. The reimbursement payment made by the taxpayer's employer is taxable. The reimbursement payment is considered a non-charitable gift and subject to gift taxes.
- XYZ, Inc. is an accrual basis taxpayer with a calendar year end. XYZ received $72,000 cash on August 1, Year 1 from a tenant for a 24-month lease on a warehouse owned by XYZ. How much rental revenue from this transaction will XYZ recognize on its Year 1 tax return? How much rental revenue will XYZ recognize from this transaction on its income statement for Year 1 prepared in accordance with GAAP? How much rental revenue from this transaction will XYZ recognize on its Year 2 tax return? How much rental revenue will XYZ recognize from this transaction on its income statement for Year 2 prepared in accordance with GAAP? Is the Year 1 book-to-tax difference favorable or unfavorable?Jack and his wife move from Maryland to the state of New York. After the move, Jack works in Connecticut and his wife works in New York City. There are no reciprocal agreements between any of the states. For the year of the move, what should they do with their state tax return(s)? a.) They should file part-year resident returns for Maryland and New York. The New York return would include income earned in Connecticut. b.) They should file part-year resident returns with Maryland and New York and a nonresident with Connecticut. c.) They should split the federal adjustment for unreimbursed moving expenses between the Maryland and New York returns d.) They should claim a credit for taxes paid to a nonresident state, split between the Maryland and New York returnsA taxpayer is presumed a resident if they live within the state for an aggregate of how many months? Select one: a. Three (3) months b. Six (6) months c. Nine (9) months d. There is no presumption
- The taxpayer is a resident citizen and the taxable period is the 2nd quarter. Receipts/earnings/balances during the period are as follows: 1st quarter expenses paid in 2nd quarter is 15,000; 2nd quarter expenses paid in 2nd quarter is 20,000; 3rd quarter expenses paid in 2nd quarter is 5,000; 1st quarter incurred but unpaid is 8,000; and 2nd quarter incurred but unpaid is 11,000. How much is the total expenses in the 2nd quarter using accrual basis?According to the contributions of Puerto Rico:Indicate the items of income that are part of the gross income.Indicates income exclusions.Calculate the adjusted gross income.Identifies if the taxpayer has interest income and explains what the tax treatment is in this regard.List the exemptions to which the taxpayer is entitled. Case 1: Carlos OrtizCarlos Ortiz is married and has an administrator position in a private company. Carlos' salary for this taxable year was $50,000. He received an inheritance of $80,000 and $12,000 in interest from a cooperative of which he is a member. Carlos files jointly with his wife, who is disabled and receives $12,000 in social security a year. The couple has a 15-year-old son, who is a student.