A C Corporation requires Form 1120 to be completed for tax purposes, while an S Corporation requires Form 1120S. Both forms contain Schedules M-1, M-2 and M-3. Schedule M-1 is used to reconcile book income to taxable income. Schedule M-2 is for analysis of accumulated adjustments. Schedule M-3 must be used, instead of Schedule M-1, if a corporation has total assets of $10 million or more. (Department of the Treasury, 2015) In order to reconcile for the ABC Company as a C Corporation, using Schedule
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oil, products and merchandise. Ignore materials and supplies. Assume a 35% tax rate if needed. 1. As of the end of 2011, what is the cumulative amount of the holding gain ExxonMobile has experienced on its inventories accounted for using LIFO? What is the cumulative amount at the end of 2010? Which footnote provided the information to answer this question? (3 points) • In millions of dollars (see table below). • [pic] (1 point each) • Footnote #3 “Miscellaneous Financial
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operation, Kuhlman Company purchased 310 units of inventory for $5, then 410 units for $6, and finally 350 units for $7. At the end of the month, 380 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. Question 2 Sadowski Video Center accumulates the following cost and market data at December 31. Inventory Categories | | Cost Data | | Market Data | Cameras | | $11,475 | | $12,565 | Camcorders | | 8,599 | | 9,289 | DVDs |
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FINANCE –EXAM 3 1. The Hasting Company began operations on January 1, 2003 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2003. He has the following information available to him: What would net income have been in 2004 if Hastings had used LIFO since 1/1/2003? $ 110,000 $ 150,000 $ 170,000 $ 230,000 2. A customer is currently
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reclassified as non- current asset. 2. Costing method for inventory Referring to Colgate’s footnote on summary on significant accounting policies, the company accounts for inventories using both the first-in, first-out (FIFO) method (80% of inventories) and the last-in, first-out (LIFO) method (20% of inventories) (page 55 of 10k). There’s a significant difference for inventory costing method
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FINANCE –EXAM 3 1. The Hasting Company began operations on January 1, 2003 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2003. He has the following information available to him: What would net income have been in 2004 if Hastings had used LIFO since 1/1/2003? Top of Form $ 110,000 $ 150,000 $ 170,000 $ 230,000 2. A customer
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1 Cost of Goods Available for Sales FIFO Amount Units Cost of Goods Sold 26,400.00 740 Endng Inventory 33,040.00 200 59,440.00 940 LIFO Amount Units Cost of Goods Sold 24,000.00 740 Endng Inventory 35,440.00 200 59,440.00 940 Specific Identification Amount Units Cost of Goods Sold
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first was titled "Nature of Business"). If the company has inventory, what cost flow assumption are they using (FIFO, LIFO, etc)? How do you know? This company currently uses FIFO (the company's predecessor had used LIFO). They tell me this in the second footnote titled "Summary of Significant Accounting Policies". If the company is using LIFO, did they have LIFO liquidation during the most recent year presented? How do you know? What depreciation methods are they using
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ACCOUNTING FOR MATERIALS – MATERIALS Definition Materials: | In cost accounting material is defined as the part of inventory. Basically, material and raw material are used for same purpose. This is main part of total cost of production. It can reduce or increase according to the fluctuation in production. So, this is very flexible and controllable source of production. For making furniture, wood is the material. 60% to 70% proportion in the total cost of production will be material cost
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Financial Accounting – Midterm Study Guide 1. Assets = Liabilities + Equity 2. Total Assets = Cash + A/R + Inventories + Prepaid Expenses 3. Income Tax – “corporate tax rate” 4. Assets = Liabilities + (C.C. + R.E.) (Retained Earnings) 5. BALANCE SHEET – is divided into 3 sections: assets, liabilities and stock holder’s equity. It provides information about the resources available to management and the claims against those resources by creditors and shareholders. The balance
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