Question - Why is net income before tax the most common base used to determine the preliminary judgment about materiality? In what circumstances might the auditor use a different base?
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Question - Below are three independent situations. a. In August, 2018 a worker was injured in the factory in an accident partially the result of his own negligence. The worker has sued Wesley Co. for $800,000. Counsel be ...
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Question - The following information is available for the 21,000 units of X Company's one product sold in 2017: Selling price $46.00 Variable costs per unit $30.00 Total fixed costs $756,000 In 2018, X Company expects sa ...
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Question - 1. You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. This month, you ...
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Question - White Corporation is a calendar-year taxpayer. Wilhelmina owns all of its stock. Her basis for the stock is $25,000. On March 1 of the current year (not a leap year), White Corporation distributes $60,000 to W ...
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Question - On January 1, 2017, Pina Corporation sold a building that cost $258,210 and that had accumulated depreciation of $105,500 on the date of sale. Pina received as consideration a $248,210 non-interest-bearing not ...
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Question - On the last day of the fiscal year, a co-worker asks for a check to be cut for $2,000 as a miscellaneous expense for supplies for a project for a VIP customer today. The invoice looks a little different from o ...
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Question - On January 1, 2017, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. Explain how it ...
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Question - A taxpayer purchased land in 2007 for $85,000 and sold it in 2016 for $75,000 cash. The buyer also assumed the mortgage of $5,000. What is the amount of gain/loss on the sale of the land? $5,000 loss. $5,000 g ...
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Question - Dave has had a really good idea for a marketing campaign for the business he works for. Unfortunately, he is been too busy to write down the idea but he tells his boss Mary about it all the same. Mary writes u ...
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