IHI 2.doc

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Erika’s Surf Shop had taxable income in Year 2 of $500,000 and pretax financial income of $600,000. The company had a cumulative $200,000 difference between its taxable income and pretax financial statement income at December 31, Year 1. These differences were solely related to accelerated depreciation methods used for income tax purposes. The enacted tax rate increased to 30 percent in Year 2 compared to an enacted rate of 20 percent in the prior year. At December 31, Year 2, the company would record a deferred tax expense of:
$40,000
$50,000
$90,000
$150,000
X Co. had the following stock transactions during the fiscal year ended June 30, Year 2:
Beginning stock balance, July 1, Year 1 100,000 shares
2:1 stock split, September 30, Year 1
Issuance of additional shares, January 1, Year 2 50,000 shares
Repurchase of shares, June 23, Year 2 1,040 shares
What was X Co.’s weighted average number of shares outstanding at June 30, Year 2?
Question: A company needs to select an expert group of consultants to provide advice for a given project. How many possible selections consisting of 2 project managers, 2 legal advisors, 4 computer scientists and 3 systems engineers can be selected if the company can pick from 4 project managers, 7 legal advisors, 5 computer scientists and 6 systems engineers?

The Question:
An electronics company is about to launch a new product. If the serial number for each piece produced has the following format: LLNNN where L stands for any letter in the English alphabet and N is a number from 0 to 9, please answer the following:
a) What is the name of the counting rule used to find all the possible outcomes?

b) How many different items can be uniquely numbered?

The State levies a 4% sales tax on merchant sales volume while the local government levies a 2% tax on the same activity. Merchants are required to remit the full amount of all levied taxes to the State government within 15 days of month end and the State is required to remit collected taxes to local authorities within 30 days of receipt. Assume the State and local authority had June 30 year-ends, and that sales volume for the months of June and July were $100,000 and $200,000, respectively. At June 30, each government would accrue the following related to sales activity:
State Local Government
Tax Revenue Payable Tax Revenue
$12,000 $4,000 $2,000
$12,000 $6,000 $6,000
$12,000 $6,000 $2,000
$4,000 $2,000 $2,000

Corporate network infrastructure is simplified in a cloud computing environment because:
19) Which of the following is not an adjustment in calculating AMTI?
A. The regular tax NOL deduction
B. Production activities deduction
C. The difference between the gains for AMTI and regular tax purposes
D. Gain on installment sales of noninventory property

20) Which of the following statements about the alternative minimum tax depreciation rules is correct?
A. The excess of the gain reported on the disposition of tangible personal property for income tax purposes over the gain reported for alternative minimum tax purposes is a positive adjustment to taxable income in arriving at alternative minimum taxable income.
B. A 31.5-year recovery period is used when calculating the commercial real property depreciation deduction for alternative minimum taxable income purposes.
C. No depreciation adjustment is made when computing AMT for real property acquired after 1998.
D. The MACRS depreciation rules are used to calculate the depreciation deduction when calculating alternative minimum taxable income regardless of the date the property was placed in service.

21) Which of the following items are tax preference items for purposes of arriving at alternative minimum taxable income?
A. Interest income earned on federal obligations
B. All depreciation claimed on pre-1987 real property acquisitions
C. Excess of net long-term capital gains over short-term capital losses
D. Excess intangible drilling costs on oil and gas properties

Budgeting is not about limiting spending. It is about structuring it. A sound budget includes financial goals and aligns spending to the goals. For most people, living expenses are the largest part of their budget. Smaller amounts are set aside for long-term goals such as college or retirement. Without a budget, many people find that they have nothing left for savings at the end of the month. They often cannot say where they spent the money. It is the small day-to-day buys, not the large ones, that create the problem.
a. encourage savings.
b. track your true living expenses.
c. bring order to how your money is spent.
d. see whether or not financial goals are realistic

Budgeting is not about limiting spending. It is about structuring it. A sound budget includes financial goals and aligns spending to the goals. For most people, living expenses are the largest part of their budget. Smaller amounts are set aside for long-term goals such as college or retirement. Without a budget, many people find that they have nothing left for savings at the end of the month. They often cannot say where they spent the money. It is the small day-to-day buys, not the large ones, that create the problem.
a. encourage savings.
b. track your true living expenses.
c. bring order to how your money is spent.
d. see whether or not financial goals are realistic

Webmax Inc. produced and marketed cameras. After considerable research and development, they developed a new digital camera that had an array of new features. Webmax was so sure about the new offering that they even reduced their marketing budget. What sort of orientation does webmax have toward the marketplace?
a. Production orientation
b. Product Orientation
C. Selling orientation
d. marketing orientation
e holistic marketing orientation