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# Accounting

### Calculating optimal solution

Consider the following LP problem: Maximize profit = 5x + 6y subject to 2x + y < 120 2x + 3y < 240 x,y > 0 a) What is the optimal solution to this problem? Solve it graphically. b) If a technical breakthrough occurred that raised the profit per unit of X to \$8, would this affect the optimal solution? c) Instead of an

### Eddie Kelly is running for reelection as mayor of a small town in Alabama

Eddie Kelly is running for reelection as mayor of a small town in Alabama. Jessica Martinez, Kelly's campaign manager during this election, is planning the marketing campaign, and there is some stiff competition. Martinez has selected four ways to advertise: television ads, radio ads, billboards, and newspaper ads. The costs of

### One thing to keep in mind is that defined benefit plans are far less used today that they were in years past

One thing to keep in mind is that defined benefit plans are far less used today that they were in years past. In fact, the article in the link below indicates defined benefit plans may be on the way out or at least severely reduced in the coming years. http://www.forbes.com/2009/06/22/pension-plans-economy-business-oxford-ana

### Every organization's accounting is affected in some way by the time period assumption

Every organization's accounting is affected in some way by the time period assumption. Looking at your present or past work experiences, how does this assumption affect the operation of the "business"? What types of adjusting entries did your organization face?

### Pam owns a sole proprietorship, and Kevin is the sole shareholder of a C (regular) corporation

Pam owns a sole proprietorship, and Kevin is the sole shareholder of a C (regular) corporation. Each business sustained a \$16,000 operating loss and a \$2,500 capital loss for the year. Evaluate how these losses will affect the taxable income of the two owners?

### All of the outstanding stock of a closely held C corporation is owned equally by David Smith and Steve Bufusno. In 2011, the corporation generates taxable income of \$30,000 from its active business

All of the outstanding stock of a closely held C corporation is owned equally by David Smith and Steve Bufusno. In 2011, the corporation generates taxable income of \$30,000 from its active business activities. In addition, it earns \$20,000 of interest from investments and incurs a \$40,000 loss from a passive activity. How much i

### Type A reorganization

Shipyard Corp. acquired Boatworks Corp. in a Type A reorganization on October 19, 2011. On the date of acquisition, Boatworks had a deficit in its earnings and profits of \$30,000. Although Shipyard had no accumulated earnings and profits, its current earnings and profits from its calendar year 2011 operations totaled \$40,000. W

### Transfer Pricing: Performance Evaluation Issues.

P19.34 Transfer Pricing: Performance Evaluation Issues. Tallahassee Division of Gulf South. The Tallahassee Division (TO) of Gulf South Corporation, operating at capacity, has been asked by Jaydee division to supply it with electrical fitting no. 1726. TD sells this part to its regular customers for \$15.00 each. Jaydee, whi

### various rates of pay among the different major groups employees

Differentiate between the various rates of pay among the different major groups of employees, and include information about the differences between exempt and nonexempt employees. Discuss how wage and hour legislation has affected employment practices.

Yazmin began a new business and set up her company as an S-Corporation. At formation, she contributed cash of \$20,000 and property that had a value of \$200,000 and basis of \$150,000. In year one, Yazmin also lent the S-corporation an additional \$100,000 in a properly executed note. The corporation paid Yazmin \$5,000 in intere

### Shin Corporation had a projected benefit obligation

(BE20-7) Shin Corporation had a projected benefit obligation of \$3,100,000 and plan assets of \$3,300,000 at January 1, 2010. Shin also had a net actuarial loss of \$465,000 in accumulated OCI at January 1, 2010. The average remaining service period of Shin's employees is 7.5 years. Compute Shin's minimum amortization of the actu

### When someone say the gains or losses is an element of pension expense, can this mean the company would have to take action if the pension is over or under funded?

When someone say the gains or losses is an element of pension expense, can this mean the company would have to take action if the pension is over or under funded? If the pension is under funded the company needs to increase funding and thus expense is increased. But, if the pension was under funded, what action is the company re

### Do these gains or losses impact the benefits the employee will eventually receive?

Do these gains or losses impact the benefits the employee will eventually receive? Pension expense components include interest costs, service costs, related fees, gains and losses on the plan, and amortization from the prior service costs on the plan. The interest rate for pension expense is determined by using the projected

### Phan Mai is a single taxpayer with two dependent children under age 17

Phan Mai is a single taxpayer with two dependent children under age 17. Phan estimates her wages for the year will be \$36,000 and her itemized deductions will be \$11,000. Assuming Phan files as head of household, determine the number of withholding allowances Phan should claim. Whcih form should be used to report following pa

### Santo Corporation was granted a patent on a product on January 1, 1999

Santo Corporation was granted a patent on a product on January 1, 1999. To protect its patent, the corporation purchased on January 1, 2008 a patent on a competing product which was originally issued on January 1, 2004. Because of its unique plant, Santo Corporation does not feel the competing patent can be used in producing a

### Keegan Corp, Deferred Cash Basis, M.Choice

On August 1, 2012, Kegan Corporation purchased a new machine on a deferred payment basis. A down payment of \$3,000 was made and 4 monthly instalments of \$4,000 each are to be made beginning on September 1, 2012. The cash equivalent price of the machine was \$16,200. Kegan incurred and paid installation costs amounting to \$500. Th

### Colin Boyd, "The Structural Origins of Conflicts of Interest in the Accounting Profession" details the events that led to the collapse of Enron and scandals at other companies

Colin Boyd, "The Structural Origins of Conflicts of Interest in the Accounting Profession" details the events that led to the collapse of Enron and scandals at other companies. Do you believe that corporate capital punishment was a just outcome for Arthur Andersen and its many employees and partners? Why, or why not? Appeal to

### Prepare adjusting entry for prepaid expenses: Orlow Co. 2006

Prepare adjusting entry for prepaid expenses. On July 1, 2006, Orlow Co. pays \$12,000 to Pizner Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Orlow Co., journalize and post the entry on July 1 and the adjusting entry on December 31.

### factors that can lead to an unfavorable quantity variance

1. What are some other factors that can lead to an unfavorable quantity variance? 2. How should variances be used by a company?

### Operating income at a volume of 4,000 unit

Selling price per unit \$100 Variable expenses per unit \$40 Fixed expenses per month \$60,000 Operating income at a volume of 4,000 unit per month is: a. 240,000 b. 200,000 c. 180,000 d. 120, 000

### Accounting- Bella Company

13. Bella Company is considering purchasing new equipment for \$450,000. It is expected that the equipment will produce net annual cash flows of \$50,000 over its 10-year useful life. Annual dpreciation will be \$45,000. Compute the cash payback period. 17. Caine Bottling Corporation is considering the purchase of a new bottlin

### Which of the following is another term for mixed costs?

Which of the following is another term for mixed costs? 1 semi mixed costs 2 semi variable 3 componenet costs 4 none of the above

### A 10% change in a firm's revenues is likely to result in a change of more than 10% in the firm's operating income because?

A 10% change in a firm's revenues is likely to result in a change of more than 10% in the firm's operating income because: 1 not all of the firm's costs will change in proportion to the revenue change. 2 the firm has financial leverage. 3 the contribution margin ratio will change in proportion to the revenue change.

### What are the differences and similarities between a defined contribution plan and a defined benefit plan?

1) What are the differences and similarities between a defined contribution plan and a defined benefit plan? As an employee, would you rather have a defined contribution plan or a defined benefit plan? Explain why. As an employer, would you rather offer a defined contribution plan or a defined benefit plan? Explain why. 2) Wh

### Products A, B, and C are produced from a single raw material input

Products A, B, and C are produced from a single raw material input. The Raw material costs \$90,000 from which 5,000 units of A, 10,000 units from B, and 15,000 units of C can be produced each period. Product A can be sold at the split off point for \$2 per unit, or it can be processed further at a cost of \$12,500 and then sold fo

### Single product which is used by manufacturers of forklift trucks

Division x of charter corporation makes and sells a single product which is used by manufacturers of forklift trucks. Presently, it sells 12,000 units per year to outside customers at \$24 a unit. The annual capacity is 20,000 units and the variable cost to make each unit is \$16. Division Y of Charter Corporation would like to bu

### Cash on hand

Imagine you are preparing a business's cash budget, which involves determining the amount of cash to keep on hand. How might the nature of the business affect your decision? Provide specific examples in your response.

### Intermediate Financial Accounting I - Depreciation, Impairments, Depletion

1 - You just got hired as an adjunct professor for a local university. You are teaching introductory accounting and just beginning a chapter on depreciation. A student asks, "Why is it necessary to have depreciation, depletion, and amortization expense? Aren't they all basically the same thing? Can't we just use one term for eac

### Variable Costing: Not for Financial Reporting

What is the major rationale for the use of variable costing? Discuss why variable costing may not be used for financial reporting purposes.

### Scenario: Your company has suffered a large loss of revenue over the past year, resulting in the need to downsize. You are the executive in charge of making the decision on which employees are terminated.There are two candidates on the table: Harry, who has been with the company over 20 years, has provided optimal productivity and even saved the company \$20,000 per year when he presented an efficiency plan. He has two children in college and his wife is scheduled for critical surgery to repair her spine so their family will be dependent on his income over the next three months. Sally, who has been with the company 15 years. She has also saved the company thousands of dollars in revenue over the years, and has been a loyal and exemplary employee. Sally is also close to your family. She has watched your children grow up and has played a consultative role when the company was in crisis. She is also your child's sports coach. You must choose either Harry or Sally. Please answer the following questions: 1. Who do you let go and why? 2. How do you let them know they will no longer have a job with your company? 3. What steps do you take so you feel good about your decision?

Scenario: Your company has suffered a large loss of revenue over the past year, resulting in the need to downsize. You are the executive in charge of making the decision on which employees are terminated.There are two candidates on the table: Harry, who has been with the company over 20 years, has provided optimal productivi