Chapter 6 - Problem I: 6-57 Bryce, a bank official, is married and files a joint return. During 2007 he engages in the following activities and transactions: a. Being an avid fisherman, Bryce develops an expertise in tying flies. At times during the year, he is asked to conduct fly-tying demonstrations, for which he is paid a
A. Some have argued that a lump sum tax is the most equitable and efficient system of taxation. If lump sum taxes are so efficient and equitable, why aren't they widely used? B. In 2002, the US federal government levied a tax of 3 percent on that part of a car's price exceeding $40,000. (For example, the tax liability on a $5
BYP13-7 R.J. Falk is the chief executive officer of Ventura Electronics. Falk is an expert engineer but a novice in accounting. Falk asks you, as an accounting major, to explain (a) the bases for comparison in analyzing Ventura financial statements and (b) the limitations, if any, in financial statement analysis. Broadening
Prepaid Interest. During the current year, Richard and Alisha, a married couple who use the cash method of accounting, purchased a principal residence for $320,000. They paid $40,000 down and financed the remaining $280,000 of the purchase price with a 30-year mortgage. At the closing, they also paid $500 for an appraisal, $500
What is the relationship between average and marginal productivity? b) How do changes in average and marginal productivity affect the cost of production? c) What are the impacts of innovation and technology on the cost of production? d) Can you utilize a real-world example to explain the law of diminishing marginal
Can you help me get started with this assignment? Construct a one-page document "selling" your chosen option to your existing shareholders and bondholders based on the merits of your plan, in comparison to the short-term or long-term shareholder value of rest of the alternatives. Consider that Blue Sky Airlines has the
Heavy Metal Corp is a steel manufacturer that finances its operations with 40% debt, 10% preferred stock, and 50% equity. The interest rate on the company's debt is 11%. The preferred stock pays an annual dividend of $2 and sells for $20 a share. The company's common stock trades at $30 a share, and its current dividend (D0) of
1- A company purchased land for $70,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start. Under the cost principle, the cost of land would be recorded at a. $77,000. b. $70,000. c. $75,000. d. $82,000.
What is price elasticity of demand? What is the relationship between income and price elasticity of demand? What is cross price-elasticity of demand?
1. Salvage Value. Your firm purchased machinery with a 7-year MACRS life for $10 million. The project, however, will end after 5 years. If the equipment can be sold for $4.5 million at the completion of the project, and your firm's tax rate is 35 percent, what is the after-tax cash flow from the sale of the machinery? 2. C
Can you please help me understand and answer these questions? Please see *BOTH* Word attachments for complete question list!
Can you help me get started with this assignment? The Financial Accounting Standards Board (FASB) plays an important role in establishing accounting standards. Here is an interesting article by Norris (2008) that describes how the FASB and the Securities Exchange Commission (SEC) have provided additional guidance on interpre
1. Please define microeconomics and macroeconomics. 2. Please state the law of demand and law of supply and explain how the law of demand and the law of supply interact to bring about equilibrium. 3. Please explain the importance of substitution to the laws of supply and demand and give a real-world example.
What are the differences in reporting guidance in a for-profit and not-for-profit organization? What are the similarities in reporting guidance for the above? How do these differences and similarities affect the comparability of financial reports? Should these reports be comparable? Why or why not?
1. Which of the following is not an asset: a. Accounts Payable b. Furnishing and Equipment c. Supplies d. Cash 2. Amy Co. acquired $500 worth of supplies on credit. Which of the following journal entries would be recorded? a. Debit supplies, credit cash b. Debit cash, credit supplies c. Debit supplies, credit accoun
Charlie and Maribelle Brown have owned and operated a retail furniture store for more than 20 years. They have employed an independent CPA during this time to prepare various sales tax, payroll tax, and income tax returns, as well as financial statements for themselves and the bank from which they borrowed money from time to tim
Prepare income statements under variable and absorption costing for the year ended December 31, 2007. - see attachment Jennifer Bruner Cost Accounting December 21, 2008 Variable versus Absorption Costing Introduction: The Zwatch Company manufactures trendy, high-quality, moderately priced watches. As Zwatch's senior
Bart's Wood Work Company Assume that the company keeps no inventories. Below is information that pertains to Bart's Wood Work Company for the past year. Based on this information prepare a financial accounting income statement (that is in the required GAAP for US external reporting). From this information make appro
Suppose you have a lemonade stand, and when you charge $2 per cup of lemonade you sell 120 cups. But when you raise your price to $3 you only sell 60 cups. Write an equation for the number of cups you sell as a function of the price you charge. Denote "C" for number of cups, and "P" for the price you charge. Assume the func
Would each of the following assets be "good" money? Why or why not? A. Gold B. Dirt C. Corn D. Oil (Often called liquid gold)
Define: -assets, current assets, liability, current liability, contributed capital, retained earnings. -what is the accounting equation?
Ace purchases 40% of Baskett Co. on Jan 1 for $500,000. Although Ace did not use it, the acquistion gave Ace the ability to apply significant influence to Baskett's operating and financing policies. Baskett reports assets on that date of $1,400,000 with liabilties of $500,000. One building with a seven-year life is undervalu
A student from a former class posted this and it is relevant to the material we have gone over. Check out the article and let me know your thoughts! "Our readings have discussed the importance of recognizing revenues and expenses in the appropriate time period, but here is an article by Browning (2008) about the importance
Using the statements in the attached file, please answer the questions: Compute the following ratios for 2002 and 2003: a. Earnings per share b. Return on assets c. Current ratio d. Times interest earned e. Asset turnover f. Debt to total assets g. Current cash debt coverage h. Cash debt coverage i. Free cash flow
Mary Graham and Paula Moore are partners engaged in operating the M&P Doll Shop, which has employed the following persons since the beginning of the year: V. Hoffman (general office worker).........$1,700 per month A. Drugan (saleswoman).....................$15,000 per year G. Beiter (stock clerk)....................$180 pe
In the cost analysis of public projects, there is a large factor to consider that is neither financial or political...and that is the measurement and calculation of social benefit or impact costs, one or the other, or both. One aspect to teach about public administration is how to account for the social expectations and outcomes
Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges. Identify activity cost drivers. Compute overhead rates and assign overhead using ABC. Activity-Based Costing overhead costs of $89,500 were estimated. An
What are the limitations of activity-based costing? Under what conditions is ABC generally the superior overhead costing system?
The Drosselmeier Corporation, located in Munich, makes Christmas nutcrackers and has an annual plant capacity of 2,400 product units. Its predicted operating results (in German marks) for the year are: Production and sales of 2,000 units, total sales DM 180,000 Manufacturing Costs Fixed (total) 60,000 Variable (per u
Please complete the attached practice problems. Use the attached excel template for practice problem number 7. 1) 3. Define accrual accounting and contrast it with cash basis accounting. 2) 4. What four conditions must normally be met for revenue to be recognized under accrual basis accounting? 3) 2. Identify and