If a Shareholder Contributes Property to a Corporation, but Receives

question 77

Essay

If a shareholder contributes property to a corporation, but receives nothing in exchange for the property, what are the tax consequences to the shareholder and the corporation?

Understand the accumulation of job costs and the flow of costs in a job order costing system.

Calculate overhead rates and apply overhead to jobs using predetermined rates.

Differentiate between direct and indirect costs and understand the role of each in job costing.

Calculate the total cost of a job using direct materials, direct labor, and applied overhead.

---

Definitions:

Variable Overhead

Refers to the costs of production that fluctuate with the level of output, such as utilities and raw materials.

Labour Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost.

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce a unit of a specific product.

Standard Costing

A cost accounting method that assigns predefined costs to direct materials, labor, and overhead, used to compare against actual costs for performance analysis.