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1) Explain situations where the opposite could be true In normative theory. For example: our personal experiences, educational levels, cultures, religions, and other aspects of our background can actually enrich our decision making ability. 2) Why does it appear that to be highly successful (particularly in a financial sense),

What is the company's warranty expense for the month of November?

A company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 computers, and 400 computers were

Difference Between Book Value of Equity and the Value Implied by Purchase Price

Consolidated Balance Sheet Problem On January 1, 2012, Perry Company purchased 8,000 shares of Soho Company's common stock for $120,000. See below for statement of financial position for both Perry and Soho shortly after acquisition: Please see attachment for associated table. Problem: A. Calculate the percentage of

XXX Company's Action Products access database queries

XXX Company's sales department wants to establish a database to track key information about its salespersons. Salespersons are assigned to either industrial or commercial customers and to one of four sales regions (East, North, South, and West). Action Products wishes to record the flowing information for each salesperson: Their

Tax Credit & Deduction

Please help me with the following questions. I am having some difficulty approaching them. The IRS code provides for deductions and credits. - List 5 possible deductions. - List 3 possible tax credits. - Compare and contrast a $10,000 adjustment, $10,000 tax credit and $10,000 of itemized deductions.

Tahoma Corporation: Application of Overhead

The following calendar year information about the Tahoma Corporation is available on December 31: [See the attached file] The company applies overhead on the basis of 125% of direct labor costs. a. Calculate the amount of over- or under-applied overhead. b. What is the significance of this over- or under-applied

Schedule for Recorded Amounts

A company made the following expenditures in connection with the construction of its new building: [See the attached file] A company made the following expenditures in connection with the construction of its new building: architect $12,000.00 land with run down building $300,000.00 removal of old building $18,00

Irregular Items and Horizontal Analysis

1. What are examples of irregular items? How does a change in accounting principles affect the financial statements? Who in the company is responsible for the application of a change in an accounting principle? Why? 2. What is a horizontal analysis? What is the value in using horizontal analysis? Why would a company use horiz

Liquidity and Operating Income Return on Investment: Bill Arts Company

Below are financial statements for Bills Art Company. Question 1: How Liquid is the firm? Select one of two recongized approaches to answering this question. Question 2: Calculate the operting income return on investment (OIROI). Explain your answer. Question 3: Are the Owners (stockholders) receiving an adequate return on

Taxable Income Rules

1. In 2012, Warren sold his personal use automobile for a loss of $9,000. He also sold a personal coin collection for a gain of $10,000. As result of these sales, $1,000 is subject to income tax. 2. The realization requirement give to own assets that have increased in value and to sell assets whose value has decreased 3. T

Estimate Net Operating Income for Investment Real Estate

Based on the following data, estimate net operating income. Show your work in good form. Two-bedroom units rent for $600 per month (total of 40 units) One-bedroom units rent for $450 per month (total of 20 units) Vacancy and uncollectible rent losses typically amount to six percent of potential gross rent. Operating expenses

Federal Tax and ALF Partnership

(Question 1) During the current year, ALF Partnership reported the following items of receipts and expenditures: $200,000 sales, $10,000 utilities, $12,000 rent, $50,000 salaries to employees, $30,000 guaranteed payment to partner Lloyd, investment interest income of $3,000, a charitable contribution of $5,000, and a distributi

Borrowing Supplies from Your Office

1. If you need a rubber band or paperclip and do not have time to pick-up a pack on your way home from work, would it be acceptable to "borrow" it (expecting never to return it)? Too often, companies don't want to consider the thought of someone on their team stealing from the company. They believe that by creating a ultra-t

Accounting Roles and Business Organization

Accounting does not exist in isolation and changes in counting roles and enforcement impact business organization on a global basis Please assist in answering these questions and provide factual opinions with references. 1. How widespread are IFRS? What will happen to U.S. GAAP? 2. How has SOX (Sarbanes-Oxley) affec

Corgan Inc: Overhead cost analysis

Corgan, Inc., manufactures two types of beds, Standard and Luxury. The Standard range is a mass market range sold through large furniture retailers, whereas the Luxury range is higher quality, sold through small furniture shops. The company currently applies overhead on the basis of machine hours worked. It is considering movi

Justification of Discretionary Spending Accounts

I would appreciate assistance with the following questions. The highest discretionary spending accounts are from the state of VA ( 1. Assume that your state is expecting a 25 percent rate increase of its 2011 population based on your previous analyses and forecast. Give t

Trend Analysis and Budgeted Amounts

Hello, I would appreciate any assistance with these discussion questions. Please provide other references used if any. Thank you! 1. Compare and contrast the budgeted amounts of the four (4) highest discretionary spending accounts for the state of VA and two (2) neighboring states. This response requires researchi

Tax Memo to the IRS: Jammer Entertainment, Inc. Case

DJ Jammer, a rapper/musician, travels around the country performing concerts on college campuses. He has two employees who make up his road crew. The crew sets up his equipment and sells DJ Jammer memorabilia (CDs, T-shirts, posters, etc.) during intermissions and after the concerts. For the last several years, Jammer has operat

Operating Margins and Health Maintenance Organization Funds

1) Operating margins in your hospital have been consistently below national norms for the past 3 years. Discuss the factors that might have created this situation and the ways in which you might determine specific causes. Additionally, describe several items that are treated as expenses in the income statement but do not require

Operating Income Changes: Belltown Athletic Supply

See the attached file. Belltown Athletic Supply (BAS) makes game jerseys for athletic teams. The F.C. Kitsap soccer club has offered to buy 100 jerseys for the teams in its league for $15 per jersey. The team price for such jerseys normally is $18, an 80% markup over BAS?s purchase price of $10 per jersey. BAS adds a name and

Should Dana buy or make the parts?

Given the following data, please answer the following: Total Cost for 50,000 Units Cost per Unit Direct materials $ 400,000 $ 8 Direct labor 250,000 5 Variable factory ove

How Nixon should report its investment in P?

1) Nixon owns 45% of P. Only 70% of the outstanding shares are voted at the annual meetings of P. Because of this, Nixon casts a majority of the votes on every ballot when it votes the shares it holds. 2) Nixon holds convertible bonds issued by P. If Nixon converts them, it would result in the ownership of 51% of the outstand

Pacific Manufacturing Company, Job-Order Costing System, Applies Overhead Cost.

The Pacific Manufacturing Company operates a job-order costing system and to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $139,500 of manufacturing overhead for an estimated allocation base of $93,000 direct labor dollars. The company has provided the followi

Deskins Manufacturing Company: Drop a Segment Division.

Deskins Manufacturing Company has four operating divisions. During the first quarter of 2010 the company reported total income from operations of $61,000 and the following results for the divisions. Analysis reveals the following percentages of variable costs in each division. Division: Denver Miami San Diego Tacoma Sal

Purchase Using Cash and Using Stock

Balance sheets for Prego Company and Sprague Company as of December 31, 2010, follow: Prego Company Sprague Company Cash $ 700,000 $111,000 Accounts receivab

Professionalism in Accounting Questions

a. State how the concept of "professionalism" in the public accounting industry shifted or evolved between Federal Trade Commission's "restraint of trade" decision in the early 1970s and today, several years following passage of the Sarbanes-Oxley Act of 2002, and b. State seven factors responsible for such changes

What is a significant accounting estimate?

1. What is an example of a significant accounting estimate? What is the importance of these estimates? How do ethics play into the decision-making process? Which financial statements include significant accounting estimates? Why? 2. What are internal controls? Why do companies need them? What are some examples of internal con