Exchange Corp is a company that acts as a facilitator in tax

Exchange Corp. is a company that acts as a facilitator in tax-favored real estate swaps. Such swaps, know as 1031 exchanges, perm it participants to avoid some or all of the capital gains taxes that would otherwise be due. The bookkeeper for the company has been asked to prepare a report for the company to help its ownerímanager analyze performance. The first such report appears below Exchange Corp. Analysis of Revenues and Costs For the Month Ended May 31 Planning Budget Actual Unit Unit Revenues Revenues d Costs Variances Exchanges completed 25 Revenue Expenses: 560 600 $40 search191 180 11 U fees Office expenses Equipment depreciation Rent Insurance 224 181 24 6 F 15 F 3 F S6 F 15 12 468 Total expense Net nneratina Prev2 of 2E Next search

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Particulars Actual Revenue and spending variance Flexible budget Activity variance Static budget Units 25 25 20 Revenue 14000 1000 U 15000 3000 F 12000 Expenses Legal and search fees 4775 275 U 4500 900 U 3600 Office expense 4525 25 U 4500 20 U 4480 Equipment depreciation 600 0 600 0 600 Rent 1500 0 1500 0 1500 Insurance 300 0 300 0 300 Total expense 11700 300 U 11400 920 U 10480 Net operating income 2300 1300 U 3600 2080 F 1520