Reference no: EM132961030
Questions -
Q1. USACo, a U.S. corporation, manufactures and sells card tables in the United States. USACo also sells card tables to its Canadian subsidiary, CANACo, for resale in Canada. USACo's largest U.S. customer purchases 40% of USACo's output for $150 per card table. CANACo also purchases 40% of USACo's output based on the same contracting terms as USACo's largest U.S. customer. The price USACo should charge CANACo per card table under the comparable uncontrolled price method is:
(a) $0. (b) $120. (c) $80. (d) $150.
Q2. USCo, a U.S. corporation, purchases violins from its foreign parent, FORCo, for $800 and resells them to U.S customers for $1,000. A search of available information for independent U.S. distributors of violins shows that the independent U.S. distributors earn a profit on resales (expressed as a percentage of the resale price) of 30%. Under the resale price method, the arm's length price that USCo should pay FORCo for violins is:
(a) $700.
(b) $900.
(c) $800.
(d) $1,000.
Q3. Joel Corporation, a U.S. corporation, is the wholly-owned subsidiary of Jerry Corporation, a foreign corporation. Jerry Corporation manufactures motorcycles at its manufacturing facilities abroad and then sells them to Joel Corporation for resale in the United States. With its Form 1120, Joel Corporation must file a:
(a) Form 6166. (b) Form 1118. (c) Form 5471. (d) Form 5472.
Q4. Somer Corporation, a U.S. corporation, is a wholly-owned subsidiary of a Japanese parent, Wonder Corporation, which manufactures yachts. During the current year, Somer pays $50 million for yachts from Wonder Corporation. If Somer Corporation fails to contemporaneously document its transfer pricing practices and the IRS makes an adjustment of $25 million, Somer Corporation is:
(a) subject to the transfer pricing penalty.
(b) within 30 days of the adjustment, able to gather its transfer pricing documents and submit it to the IRS.
(c) not subject to any transfer pricing penalty.
(d) not eligible for an advance pricing agreement.
Discuss the impact on profitability
: In the books of Pixie Ltd closing inventory, Discuss the impact on profitability and disclosure requirement of change in Accounting policy as per AS 1.
|
Determine the variable overhead spending variance
: Variable manufacturing overhead cost incurred was $108,500 and the fixed manufacturing overhead cost was $28,000. Determine variable overhead spending variance
|
How well did coke and pepsi do in managing inventory
: What other thoughts do you have on how Coke and PEPSI did with inventory turnover and average days in inventory for 2020 and 2019?
|
Prepare journal entries to record transactions instalment
: You returned to Mr. Jell for for a further update. Prepare journal entries, in proper format, to record all transactions the instalment on April 15.
|
Find the price USACo should charge
: USACo, a U.S. corporation, manufactures and sells card tables in the United States. Find the price USACo should charge
|
Determine the basic earnings per share for tech-era
: The company declared dividends for the preferred shares for all years due up to 2018. Determine the basic earnings per share for 2018
|
Compute the resulting gain or loss
: Assume that Swanson & Hiller sells the machine on December 31 of the fourth year for $32,000 cash. Compute the resulting gain or loss
|
What is the minimum transfer price
: What is the minimum transfer price the Wooden Furniture Division should consider if the Wooden Furniture Division has excess capacity
|
What is estimated net taxable estate
: What is his estimated net taxable estate? Tom Cook owns a home worth $300,000, a car worth $15,000, various investments worth $600,000
|