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Fontenot Corporation was organized in 2011 and began operations at the beginning of 2012. The company is involved in interior design consulting services. The following costs were incurred prior to the start of operations.
$16,990
14,820
8,060
1,680
$41,550
(a) Compute the total amount of organization costs incurred by Fontenot.
(b) Prepare the journal entry to record organization costs for 2012.
The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:
A is a fixed expense; B is a variable cost. During the current year the level of activity has reduced but is still within the relevant range.
If the Eagle line is eliminated, $34,000 of fixed costs will remain. Prepare an analysis showing whether the Eagle line should be eliminated.
Analyze the tax implications for the following case study. Apply the IRS codes to determine itemized deductions for individuals. Support your conclusions with reference to specific IRS codes and regulations.
Assume Green Leaf Nursery anticipated sales of $500 in the first quarter. Accounts receivable at the beginning of the year was $300. Assuming a collection period of 30 days, which is the approximate beginning balance for the second quarter?
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