Please show work and formulas so it can help me understand everything.
Assignment # 1
Submit your responses to the following questions in a 1-2 page summary MSWord document. Label each question clearly. For computations done in an Excel spreadsheet, please copy and paste your work into your MSWord document. For written answers, please make sure your responses are well written, use APA formatting, and have the proper citation, if needed.
Amber City borrowed $1,000,000 secured by a 5-year mortgage note. The cash from the note was used to purchase a building for vehicle and equipment maintenance. Show how these two transactions should be recorded in the General Fund and governmental activities general journals.
Indicate whether the following revenues would most likely be classified as program revenues or general revenues on the government-wide statement of activities.
Unrestricted operating grants that can be used at the discretion of the city council.
Capital grants restricted for highway construction.
Charges for building inspections.
A special assessment for snow removal.
Fines and forfeits.
Motor vehicle fuel taxes restricted for road repair.
Unrestricted investment earnings.
Assignment # 2
Please use this template for the assignment below:
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APPLICABLE |
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2013 Taxable Income |
Adjustments OR Preferences |
AMTI AFFECTS |
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Line Item |
“I” OR “D” OR “N” |
“A” OR “P” OR “N” |
“P” OR “N” OR “E” |
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Life ins. proceeds – CFO’s death |
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Revenue from sales |
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Key-person life ins. premium |
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Utilities cost |
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Employee benefits expenses |
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Intangible drilling costs |
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Mining exploration and development costs |
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Interest income on qualified private activity tax-exempt bonds |
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Interest paid on loan to purchase tax exempt bonds |
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Alternative Minimum NOL Deduction |
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Rental income received & earned in 2013 |
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Rental income received but not earned in 2013 |
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Overhead cost – Expensed in 2013 |
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Overhead cost – Expensed in 2012 |
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Charitable contributions |
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Tarass Inc. is an accrual-method calendar-year corporation. Tarass, Inc. did not qualify for the domestic production activities deduction. The following information has been provided about the activities occurring in 2013:
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Life insurance proceeds from CFO’s death |
$100,000 |
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Revenue from sales |
$3,500,000 |
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Key person life insurance premium |
$6,800 |
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Utilities cost |
$275,000 |
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Employee benefits expense |
$65,000 |
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Intangible drilling costs |
$40,000 |
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Mining exploration and development costs |
$60,000 |
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Interest income on qualified private activity, tax-exempt bonds |
$25,000 |
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Interest paid on loan to purchase tax-exempt bonds |
$25,000 |
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Alternative Minimum NOL Deduction |
$35,000 |
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Rental income received and earned in 2013 |
$5,000 |
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Rental income received but not earned in 201 |
$10,000 |
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Overhead costs : Expensed in 2013 |
$5,000 |
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Overhead costs expensed for financial reporting in 2012 |
$10,000 |
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Charitable contributions |
$315,000 |
Using Excel, prepare a reconciliation. Set up the Excel spreadsheet using the example below:
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Line Item *a |
2013 Taxable Income *b: |
Adjustments OR Preferences |
AMTI EFFECTS |
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Adjustments (A) |
Preferences (P) |
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NOTE *a: Line Item is each activity recorded for Tarass in 2013.
NOTE *b: “2013 Taxable Income” refers to if the line item would increase, decrease, or have no effect on Tarass’s book income under GAAP. Put an “I” if the line item would increase 2013 taxable income OR “D” if the item would decrease 2013 taxable income OR “N” if the line item would neither increase nor decrease 2013 taxable income.
NOTE *c: “Adjustments OR Preferences” refers to if the line item is an adjustment or a preference. Please place an “A” if the line item is an adjustments OR a “P” if the line item is a preference OR an “N” if the line item is neither an adjustment nor a preference.
NOTE *d: “AMTI Effects” refers to if the line item would have a positive, negative, or no effect on the Alternative Minimum Taxable Income. Please place a (P) for a positive affect OR (N) for a negative effect OR an (E) if the line item could have either a positive or negative effect. If the line item is not applicable to AMTI, leave the block blank.
NOTE: The student might want to consult with the IRS website, downloading the instructions for Form 4626 @ http://www.irs.gov/pub/irs-pdf/i4626.pdf. Form 4626 can be downloaded @ http://www.irs.gov/pub/irs-pdf/f4626.pdf
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