Warwick's co., a women's clothing store, purchased $75,000 of merchandise from a sup - plier on account, terms fob destination, 2/10, n/30. warwick's returned $9,000 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period. journalize warwick's entries to record (a) the purchase, (b) the merchandise re - turn, and (c) the payment answer
Charles and Joan Thompson file a joint return. In 2015, they had taxable income of $98,620 and paid tax of $16,604. Charles is an advertising executive, and Joan is a college professor. During the fall 2016 semester, Joan is planning to take a leave of absence without pay. The Thompsons expect their taxable income to drop to $79,500 in 2016. They expect their 2016 tax liability will be $11,594, which will be the approximate amount of their withholding. Joan anticipates that she will work on academic research during the fall semester.
During September, Joan decides to perform consulting services for some local businesses. Charles and Joan had not anticipated this development. Joan is paid a total of $31,500 during October, November, and December for her work. Use the appropriate Tax Rate Schedules.
What estimated tax payments are Charles and Joan required to make, if any, for tax year 2016?
On January 1, 2014, Borstad Company purchased equipment for $1,180,000. It is depreciating the equipment over 25 years using the straight-line method and a zero residual value. Late in 2019, because of technological changes in the industry and reduced selling prices for its products, Borstad believes that its equipment may be impaired and will have a remaining useful life of 8 years. Borstad estimates that the equipment will produce cash inflows of $400,000 and will incur cash outflows of $295,000 each year for the next 8 years. It is not able to determine the fair value of the equipment based on a current selling price. Borstad's discount rate is 12%.
1. Prepare schedules to determine whether, at the end of 2019, the equipment is impaired and if so, the impairment loss to be recognized.
2. Prepare the journal entr to record the impairment.
