ACCT 553 Week 1 Homework FOR MORE CLASSES VISIT www . acct553study . com
management of Fred ’ s how to determine whether a writeoff is permitted .
3 . ( TCO D ) Edwards Co . includes one coupon in each bag of dog food it sells . In return for four coupons , customers receive a dog toy that the company purchases for $ 1.20 each . Edwards ' s experience indicates that 60 percent of the coupons will be redeemed . During 2010 , 100,000 bags of dog food were sold , 12,000 toys were purchased , and 40,000 coupons were redeemed . During 2011 , 120,000 bags of dog food were sold , 16,000 toys were purchased , and 60,000 coupons were redeemed .
4 . ( TCO D ) Grider Industries , Inc . issued $ 6,000,000 of 8 % debentures on May 1 , 2010 and received cash totaling $ 5,323,577 . The bonds pay interest semiannually on May 1 and November 1 . The maturity date on these bonds is November 1 , 2018 . The firm uses the effective-interest method of amortizing discounts and premiums . The bonds were sold to yield an effective-interest rate of 10 %.
===================================================
Chapter 1 ( 5 pts )
ACCT 553 Week 1 Homework FOR MORE CLASSES VISIT www . acct553study . com
1 . Briefly discuss the purpose of the Sixteenth Amendment Chapter 2 ( 5 pts )
2 . Explain the two " safe harbors " available to an Individual taxpayer to avoid a penalty for underpayment of estimated tax .