Short answers Problem 5-1 Explain the difference(s) (if any) in being a co-owner of a business Partnership versus a Limited Liability Corporation (LLC), in terms of a) liability, and b) taxes Problem 5-2 Explain the difference(s) (if any) between an S-Corporation and a Corporation, in terms of a) liability, and b) taxes Problem 5-3 Explain the difference between Cash Basis accounting and Accrual Basis accounting. Give an example of each in your explanation Problem 5-4 A consulting engineering company, HW4 Engineers, Inc, has a contract with the State of Washington. The State, being in compliance with the Federal Acquisition Regulation (FAR), conducts a review of the company's overhead to determine the allowable overhead rate for that company. HW4 reported their overhead as shown below. HW4 pays their Design Engineers $45.00 per hour. What is HW4's a) overhead rate, and b) billable rate for a Design Engineer? Indirect Costs $140,007 $ 43,150 $26,500 $67,444 $87,992 Payroll taxes Profit Sharing Health Insurance Vacation, Holiday pay Dividends Note: Dividends are paid after taxes, so are not considered an expense of doing business General Overhead $224,735 Payroll variance account ($ 36,000) $13,900 $4,600 $48,000 $66,326 $ 42,010 Indirect labor Software Automobile lease Rent Corporation taxes Office supplies Direct Labor $552,441 Short answers Problem 5-1 Explain the difference(s) (if any) in being a co-owner of a business Partnership versus a Limited Liability Corporation (LLC), in terms of a) liability, and b) taxes Problem 5-2 Explain the difference(s) (if any) between an S-Corporation and a Corporation, in terms of a) liability, and b) taxes Problem 5-3 Explain the difference between Cash Basis accounting and Accrual Basis accounting. Give an example of each in your explanation Problem 5-4 A consulting engineering company, HW4 Engineers, Inc, has a contract with the State of Washington. The State, being in compliance with the Federal Acquisition Regulation (FAR), conducts a review of the company's overhead to determine the allowable overhead rate for that company. HW4 reported their overhead as shown below. HW4 pays their Design Engineers $45.00 per hour. What is HW4's a) overhead rate, and b) billable rate for a Design Engineer? Indirect Costs $140,007 $ 43,150 $26,500 $67,444 $87,992 Payroll taxes Profit Sharing Health Insurance Vacation, Holiday pay Dividends Note: Dividends are paid after taxes, so are not considered an expense of doing business General Overhead $224,735 Payroll variance account ($ 36,000) $13,900 $4,600 $48,000 $66,326 $ 42,010 Indirect labor Software Automobile lease Rent Corporation taxes Office supplies Direct Labor $552,441