Mr. Bailey asks that you prepare Divisional Income Statements showing what 2048 results would have been had the Audit Division purchased all the excess capacity of the you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Tax Division would charge the required, selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees. Complete the following Divisional Income Statements. If there is no amount or an amount is zero, enter"0". BOR CPAS, Inc. Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Company Fees earned: $1,200,000 $1,200,000 Audit fees (16 engagements) Tax fees (45 engagements) Transfer pricing fees $708,750 708,750 Expenses: Variable: Audit hours provided by Audit Division (216,000) (216,000) (283,500) Tax hours provided by Tax Division (283,500) (50,000) (65,500) (115,500) Excess capacity hours paid to salaried staff Audit hours provided by Tax Division Fixed expenses Operating income before support department allocations Support department allocations for payroll Operating income Feedback Check My Work Compute the price charged by the Tax Division to the Audit Division, and both the transfer pricing fees and cost to the Tax Division of the sale of its excess hours department allocations, and Operating income totals using your revised amounts. Market Transfer Price Mt. Bailey asks that you prepare Divisional Income Statements showing what 2018 results would have been had the Audit Division purchased all the excess capacity of the Tax Division, using a market you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Tax Division would charge the Audit Division the market rate of required, selling all its excess capacity to the Audit Division. The tax Division would still be responsible for paying the salaries of their employees. Complete the following Divisional Income Statements. If there is no amount of an amount is zero, enter"0" BOR CPAS, Inc. Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Company Fees earned: Audit fees (16 engagements) Tax fees (45 engagements) $1,200,000 $1,200,000 $703,750 708,750 Transfer pricing fees Expenses: Variable: Audit hours provided by Audit Division Tax hours provided by Tax Division (216,000) (263,500) o (216,000) (283,500) o (50,000) (65,500) (115,500) Excess capacity hours paid to salaried staff Audit hours provided by Tax Division Fixed expenses Operating income before support department allocations Support department allocations for payroll Operating income ek check Compute the price charged by the Tax Division to the Audit Division, and both the transfer pricing fees and cost to the Tax Division of the sale of its excess hours. Be sure to revise the Total Comp department allocations, and Operating income totals using your revised amounts. Mr. Balley asks that you prepare Divisional Income Statements showing what 20 results would have been had the Audit Division purchased the excess capacity of the Tax Division, using a market tre price. The dangers tell you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Tax Division would change the Audit Division the market of $100 per hour for the additional hours required, selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees Complete the following Divisional Income Statements. If there is no amount or an amount is zero, enter "o". BOR CPAS, Inc Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Company Fees samed: Audit fees (16 engagements) $1,200,000 $1.200,000 Tax fees (45 engagements) $708,750 703.750 Transfer pricing fees Expenses: Variable: Audit hours provided by Audit Division (216,000) 0216,000) Tax hours provided by Tax Division (283,500) (283,500) Excess capacity hours pold to salaried staff 07 Audit hours provided by Tax Division (50,000) (65,500) (115.00) Flored expenses Operating Income before support department allocations Support department allocations for payroll Operating income 120 00 Mr. Bailey asks that you prepare Divisional Income Statements showing what 2048 results would have been had the Audit Division purchased all the excess capacity of the you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Tax Division would charge the required, selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees. Complete the following Divisional Income Statements. If there is no amount or an amount is zero, enter"0". BOR CPAS, Inc. Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Company Fees earned: $1,200,000 $1,200,000 Audit fees (16 engagements) Tax fees (45 engagements) Transfer pricing fees $708,750 708,750 Expenses: Variable: Audit hours provided by Audit Division (216,000) (216,000) (283,500) Tax hours provided by Tax Division (283,500) (50,000) (65,500) (115,500) Excess capacity hours paid to salaried staff Audit hours provided by Tax Division Fixed expenses Operating income before support department allocations Support department allocations for payroll Operating income Feedback Check My Work Compute the price charged by the Tax Division to the Audit Division, and both the transfer pricing fees and cost to the Tax Division of the sale of its excess hours department allocations, and Operating income totals using your revised amounts. Market Transfer Price Mt. Bailey asks that you prepare Divisional Income Statements showing what 2018 results would have been had the Audit Division purchased all the excess capacity of the Tax Division, using a market you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Tax Division would charge the Audit Division the market rate of required, selling all its excess capacity to the Audit Division. The tax Division would still be responsible for paying the salaries of their employees. Complete the following Divisional Income Statements. If there is no amount of an amount is zero, enter"0" BOR CPAS, Inc. Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Company Fees earned: Audit fees (16 engagements) Tax fees (45 engagements) $1,200,000 $1,200,000 $703,750 708,750 Transfer pricing fees Expenses: Variable: Audit hours provided by Audit Division Tax hours provided by Tax Division (216,000) (263,500) o (216,000) (283,500) o (50,000) (65,500) (115,500) Excess capacity hours paid to salaried staff Audit hours provided by Tax Division Fixed expenses Operating income before support department allocations Support department allocations for payroll Operating income ek check Compute the price charged by the Tax Division to the Audit Division, and both the transfer pricing fees and cost to the Tax Division of the sale of its excess hours. Be sure to revise the Total Comp department allocations, and Operating income totals using your revised amounts. Mr. Balley asks that you prepare Divisional Income Statements showing what 20 results would have been had the Audit Division purchased the excess capacity of the Tax Division, using a market tre price. The dangers tell you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Tax Division would change the Audit Division the market of $100 per hour for the additional hours required, selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees Complete the following Divisional Income Statements. If there is no amount or an amount is zero, enter "o". BOR CPAS, Inc Divisional Income Statements For the Year Ended December 31, 2018 Audit Division Tax Division Total Company Fees samed: Audit fees (16 engagements) $1,200,000 $1.200,000 Tax fees (45 engagements) $708,750 703.750 Transfer pricing fees Expenses: Variable: Audit hours provided by Audit Division (216,000) 0216,000) Tax hours provided by Tax Division (283,500) (283,500) Excess capacity hours pold to salaried staff 07 Audit hours provided by Tax Division (50,000) (65,500) (115.00) Flored expenses Operating Income before support department allocations Support department allocations for payroll Operating income 120 00