The Tax Preparation Blog

Archive for March, 2008

Question: CPA Exam; Errors?

2. Terry, Inc. is a calendar-year corporation whose financial statements for 2004 and 2005 included errors as follows:

2004- Ending Inventory: $15,000 overstated
2005- Ending Inventory: $5,000 understated

2004-Depreciation Expense: 12,500 overstated
2005- Depreciation Expense: $4,000 understated

Assume that purchases were recorded correctly and that no correcting entries were made at December 31, 2004 or at December 31, 2005. Ignoring income taxes, by how much should Terry’s retained earnings be retrospectively adjusted at January 1, 2006?

a.$135,000 increase
b.$3,500 decrease
c.$1,500 decrease
d.$1,000 decrease

Answer: Answer is: $13500 increase

Effect on income:
2005 – ($ 5000) understated
2004 – ($12500) understated
2005 – $ 4000 overstated
Total Effect: $13500 understated

Therefore, what we should do is to eliminate understatement by increasing the retained earnings by $13500.

It seems that it is not in the choices. You might have committed a typographical error.

China Valves Technology, Inc. Announces Fourth Quarter and Full Year 2009 Results

China Valves Technology, Inc. , a leading Chinese metal valve manufacturer, today announced its fourth quarter and full year financial results ended December 31, 2009.

Just the word ‘Jordan’ invokes in us a spirit of competitiveness and perfection. It doesn’t matter what you do, whether at work, studying or helping at home, you want to do excellently. Just like Jordan on the court. You want to work hard, do your best and lastly shine in your work. This is what wearing Jordan shoes are all about. This is the attitude that most people have when picking these shoes.

Jordan shoes are so well-known that everybody has heard about them. This especially holds true for athletes and people who like sports and the outdoors. They are by far one of the most popular choices when it comes to purchasing a pair of sport shoes. But it doesn’t stop there. One might even venture to buy them just for the sake of the image they want to portray to others or to show their support for basketball and their respect for Michael Jordan himself.

Jordan shoes are also known for its comfort. As it is especially popular in sports, it is made so that it gives you that extra ‘boost’ when jumping or running so that your feet feel good and get that extra care and comfort. It is especially suitable for all kinds of sports including track events, running, tennis, badminton, squash and of course basketball. However, you might just opt to wear your Jordans on a normal day at school, the gym or for a stroll.

Last of all, Jordan shoes are attractive to look at. They come in various colors and patterns to suit the taste of the wearer. They can come in different styles to suit the weather, your mood or the occasion. It all depends on what you are looking for when it comes to sport shoes. They can be classy, sporty, casual, cute or fashionable. All you need to do is look at the options and choose your new kicks.

Tax Debt Solutions: What to do when you owe back taxes A guide for individuals and small businesses who owe back taxes to the IRS and other taxing authorities…

The Priests of Lagash $2.99 “From one end of the land to the other, there was the tax collector,” wrote the Sumerian scribe, more than 4000 years ago. The corrupt king of Lagash needs those taxes to support his lavish lifestyle and his dreams of empire. But the high priests remember a time when they ruled the city, when they were the power in the land. And so when a tax collector is found murdered at a dissident temple, the …

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CCA, recalls are top stories

Ground was broken for the federal detention center last spring, right after Corrections Corporation of America received authorization from the Office of the Federal Detention Trustee April 7 to build the facility housing up to 1,072 prisoners on East Mesquite Avenue.

Public Service Announcement! New Word Order Ahead!

Question: Obtain a copy of federal tax returns by e-mail?

I need to obtain a copy of my federal tax return quickly. I see that there are several services online that claim that they can retrieve and e-mail the retun to you within 24 hours. Has anybody ever used one of these services? Which one? Did it work?

Answer: You can expect to get copy of the return from IRS in 60 days. However, you can get transcripts in 10 days. In most of the cases, the transcripts serve the purpose.

1. Form 4506 is Request for Copy of Tax Return. You will get copy of tax return file by you along with all the attachments (like W2, 1099..). For each return the charges are $39 and IRS takes about 60 days to complete your request. In the Form 4506 you can also authorize a third party to receive the return.

2. Normally, for most of the requirements your purpose is served if you ask IRS for Transcripts instead of your tax return. You can order a transcript by calling 1-800-829-1040, or using Form 4506-T, Request for Transcript of Tax Return. There is no fee for a transcript. Transcripts have most of the information from your tax return including information from W2, 1099.

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UTA, UNT students save cash by renting textbooks

You can rent an apartment, a car or a DVD. Now add college textbooks to the list expensive items that people are renting because they are short on cash or looking for a better deal.

How to Save a Copy of Your Tax File to Your Computer From TurboTax Online