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    Reporting a Casualty

    A fire occurred in March 2014 at Lincoln Lumber, Inc., causing damage to nearby properties. By May of 2014, no claims had yet been asserted against Lincoln. However, Lincoln's management and legal counsel concluded that it was reasonably possible that Lincoln would be held responsible for negligence, and that $1,000,000 would be

    Calculating Loss of Impairment

    Donald Corporation owns machinery with a book value of $670,000. It is estimated that the machinery will generate future cash flows of $560,000. The machinery has a fair value of $520,000. Donald should recognize a loss on impairment of a. $150,000 b. $110,000 c. $40,000 d. $ -0-

    What gain should be recognized from the sale of the machine?

    On April 1, 2004, Norcross Corporation purchased a new machine for $550,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $25,000. The company has recorded monthly depreciation using the straight-line method. On August 1, 2013, the machine was sold for

    Calculating Land and Building Cost

    1. On February 10, 2013, Rims Corporation purchased a parcel of land as a factory site for $250,000. An old building on the property was demolished, and construction began on a new building which was completed on September 30, 2013. Salvaged materials resulting from the demolition were sold for $10,000. Costs incurred during thi

    Comprehensive checklist for evaluating internal controls

    Prepare a comprehensive checklist for evaluating internal controls for a company (real or fictitious). Apply the checklist to outline phases of the control evaluation "Comprehensive" means a complete checklist. You must include company-level controls, significant processes, major classes of transactions, and significant accoun

    When to Make a Company a Proprietorship

    Good Co. had a net loss of $75,000 from merchandising operations in 2010. Jane owns Good Co. and works 20 hours a week in the business. She has a large amount of income from other sources and is in the 35% marginal tax bracket. Would Jane's tax situation be better if Good Co. were a proprietorship or a C corporation?

    Recognized Gain/Loss in Selling Shares

    Bob Smith purchased 30 shares of XYZ stock on April 30, 2010 for $210, and on September 1, 2010, he purchased 90 additional shares for $900. On November 8, 2010, he sold 48 shares, which could not be specifically identified, for $576, and on December 15, 2010, he sold another 25 shares for $50. What is his recognized gain or los

    Property Tax Exclusions and Gains

    3. Mathew Murphy, single, sold his home that he had owned for 20 years for $670,000. He purchased it for $110,000 and made $40,000 of capital improvements on the home during his time of ownership. (a) How much gain is excluded? How much is recognized? (b) If Mathew purchased another home for $420,000, how much is excluded an

    Absorption and Variable Costing Calculations

    The following absorption costing income statement and additional data are available from the accounting records of Bernon Co. for the month ended May 31, 2007. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories.

    The Challenges of Teamwork

    Define the challenges of teamwork when all participants do not contribute? Please provide two references.

    How is performance evaluated for a profit center?

    How is performance evaluated for a profit center? a. Actual costs incurred compared to budgeted costs. b. Actual segment margin compared to budgeted segment margin. c. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment. d. None of the above.

    Profit Center Performance

    How is performance evaluated for a profit center? a. Actual costs incurred compared to budgeted costs. b. Actual segment margin compared to budgeted segment margin. c. Comparison of actual and budgeted return on investment (ROI) based on segment margin and assets controlled by the segment. d. None of the above.

    Direct Materials Price Variance Favourability

    April Corporation developed the following per-unit standards for its product: 2 pounds of direct materials at $3.75 per pound. Last month, 2,000 pounds of direct materials were purchased for $7,600. The direct materials price variance for last month was: a. $3,800 favorable. b. $200 favorable. c. $100 unfavorable. d. $2

    Fixed Costs and Maximizing Firm Value

    Golf Specialities (GS) is a Belgian company which manufacture head covers. GS is currently making 500 tiger head covers at 3.50 euros, which includes both variables and allocated fixed cost. GS sell to distributors for 4.25 euros. A distributor from Japan (Kojo) wants to purchase 100 tiger head covers per week from GS and sel

    Contingent Workers

    Contingent workers are assuming a greater role in today's organization. With that as a background, discuss compensation and benefit issues associated with the following workers: part-time, temporary, independent workers, and flexible/telecommuting. What impact may these changes have on an organization's compensation plan?

    Differences in Executive and Non-Executive Pay

    Contrast the principle difference between executive pay and non-executive pay, including a discussion on controversies associated with the growing disparity between executive and non-executive compensation packages.

    Calculating Variances

    During the week ending on August 6th, the following activity took place: - 2390 machine hrs were worked - 11400lbs of raw materials were purchased for inventory at a total cost of $70,680 - 3,800 cases of finished products were produced - 6,720 labor hrs were worked at an average rate of $12.25 per hr - $8,126 actual varia

    Control policies: Hamilton Company

    Listed below are specific control policies and procedures prescribed by Hamilton Company. Identify the components of internal control to which each policy or procedure relates. For each item, identify one other policy or procedure for that internal control component that is not on the preceding list. - Management is alert

    Tax Accounting: Changes made in SFAS 158 and SFAS 132 compared with SFAS 87

    1) Which one is false? a) corporate income tax is an expense, not a distribution of the profits to the government b) non taxable revenue causes permanent differences between pretax accounting income and taxable income c) In general, temporary differences are resulted from timing difference between GAAP and tax regulations

    Annual Growth Rate in Assets and Free Cash Flow

    The first "target" is in a mature industry. The target is held by two brothers who each have 5 million shares of stock. This company has a free cash flow of 20 million and its WACC is 11%. The free cash flow is estimated to grow at a constant rate of 5%. The company has 100 million of marketable securities, 200 million of deb

    Total Assets: Pepsico

    What are the company's total assets at the end of its most recent annual reporting period? What are the total assets at the end of the previous annual reporting period? How much cash and cash equivalents did the company have at the end of its most recent annual reporting period?

    Static Budgets and Flexible Budgets

    Summer Company's static budget is based on a planned activity level of 25,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 20,000 units and one based on 30,000. The company actually produced and sold 29,000 units. In evaluating its performance, ma

    Minimum Cash Balance

    An important reason for imposing a minimum cash balance in the cash budget is: a. it provides a cushion that absorbs forecast errors b. it provides extra funds for managers to spend c. it makes the balance sheet look better d. all of the above

    Incremental Analysis - Revenues, Costs and Net Income

    Ming Company is considering two alternatives. Alternative A will have sales of $150,000 and costs of $100,000. Alternative B will have sales of $180,000 and costs of $120,000. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income.

    Public Budgeting

    Select three revenue sources in public budgeting. Summarize each revenue source and describe which fund the source should fall under or be tracked in. Income taxes are usually collected by...

    Determining the single investment amount

    Mary Garcia, who is 25 years old, wishes to retire with $1,000,000 when she is 45. To accomplish this Mary is going to ask her grandmother for a "nest egg." Assuming she invests the money her grandmother gives her in a mutual fund that is expected to earn 10%, how much money must she get from Granny if she hopes to meet her earl

    Fixed Costs.

    Fixed costs are really variable. The more you produce the smaller the unit cost of production. Is this statement correct?

    Total materials variance, the price, and quantity variances

    The standard cost of Product B manufactured by TLC Company includes 3 units of direct materials at $6.20 per unit. During June, 28,000 units of direct materials are purchased at a cost of $5.83 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B. Compute the total materials variance and

    Company's overall net operating income

    (TCO D) The management of Drummer Corporation is considering dropping product D84L. Data from the company's accounting system appear below. Sales $800,000 Variable Expenses $440,000 Fixed Manufacturing Expenses $248,000 Fixed Selling and Administrative Expenses $184,000 All fixed expenses of the company are full

    Ferro Wares is a division of a major corporation

    (TCO D) Ferro Wares is a division of a major corporation. The following data are for the latest year of operations. Sales $33,040,000 Net Operating Income $1,453,760 Average Operating Assets $8,000,000 The company's minimum required rate of return 18% Required: i. What is the division's ROI? ii. What is the