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Leigh, who owns a 50% interest in a sporting goods store, was a material participant in the activity for the last fifteen years. She retired from the sporting goods store at the end of last year and will not participate in the activity in the future. However, she continues to be a material participant in an office supply store in which she is a 50% partner. The operations of the sporting goods store resulted in a loss for the current year and Leigh's share of the loss is $40,000. Leigh's share of the income from the office supply store is $75,000. She does not own interests in any other activities.
A) Leigh cannot deduct the $40,000 loss from the sporting goods store because she is not a material participant.
B) Leigh can offset the $40,000 loss from the sporting goods store against the $75,000 of income from the office supply store.
C) Leigh will not be able to deduct any losses from the sporting goods store until future years.
D) Leigh will not be able to deduct any losses from the sporting goods store until she has been retired for at least four years.
E) None of the above.
By preparing a four-column bank reconciliation ("proof of cash") at year-end, an auditor will generally not be able to detect:
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Consider the Industrial Supply Company example again. Assume that the company plans to maintain its dividend payments at the same level in 2009 as in 2008.
The Nichols Company uses the weighted-average method in its process costing system. The company recorded 29,500 equivalent units for conversion costs for November in a particular department.
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Compare the organization, operation, and taxation of "C" corporations and "S" corporations. Be sure to organize your answer so that you address each of the aspects of this question - organization, operation and taxation - completely for each type ..
On the first day of the current fiscal year, $1,000,000 of 10-year, 7% bonds, with interest payable semiannualy were sold for $1,050,000. Present entries to record the following transactions for the current fiscal year:
Karen Company had 105,000 shares of common stock outstanding on January 1, 2011. On August 30, 2011, Karen sold 50,000 shares of common stock for cash. Karen also had 11,000 shares of convertible preferred stock outstanding throughout 2011.
Oxford company had sales of $3 000 000, variable expenses of $1 800 000, and fixed expenses of $800 000. what would be the amount of saleas dollar at the break even point.
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