Choosing Business-Segment Disclosures What factors are considered when a firm chooses segmental information disclosures? Consider the article "Cola Wars: Going Global" (Cespedes, 2009). Next, using outside sources that you may seek and your professional experience, concisely answering the following questions: (A7.1) If you we
Orange Corporation would like to transfer excess cash to its sole shareholder, Danielle, who is also an employee. Danielle is in the 28% tax bracket, and Orange is in the 34% bracket. Because Danielles contribution to the business is substantial, Orange believes that a $50,000 bonus in the current year is reasonable compensation
Whether compensation paid to a corporate employees is reasonable is a question of fact to be determined from the surrounding circumstances. How would the resolutions of this problem be affected by each of the following factors? a. The employee owns no stock but is the mother in law of the sole shareholder. b. The shareholde
In determining Blue Corporations current E &P for 2011, how should taxable income be adjusted as a resullt of the following transactions? a. A captiol loss carryover from 2010, fully used in 2011. b. Nondeductible meal expenses in 2011. c. Interest on municipal bonds received in 2011. d. Nondeductible lobbying expenses i
What factors affect the tax treatment of corporate distributions?
Give two examples of how management of a(n) organization(s) has instituted control processes that appear to be adversely affecting the organization(s). Give two examples of how management of a(n) organization(s) has instituted control processes that appear to be contributing to the overall well-being of the organization.
1. The records of Nepomuzeno, Inc. provided the following information 2012 2013 2014 2015 Pretax income 90,000 92,000 95,000 98,000 Taxable income 63,000 101,000 104,000 107,000 Income Tax rate 30% for all years The above amounts include only two temporary differences;
MCA handles several daily commuter flights. The budget officer compiled the following data regarding airport costs and activity over the past years: Month Flights originating at MCA (000) Airport cost January....................................11............................................
The management of Bayside Company is considering whether one of the department's in its retail store should be eliminated. The contribution margin in the department is $150,000 per year. Fixed expenses allocated to the department are $130,000 per year. It is estimated that$120,000 of these fixed expenses will be eliminated if the department is discontinued. Which costs are irrelevant to this decision? If the department is eliminated, what will be the impact on the company's overall net operating income?
5. The management of Bayside Company is considering whether one of the department's in its retail store should be eliminated. The contribution margin in the department is $150,000 per year. Fixed expenses allocated to the department are $130,000 per year. It is estimated that$120,000 of these fixed expenses will be eliminated if
The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operating assets $3,000,000 Annual fixed costs 560,000 Unit selling price 40 Variable cost per unit 24 How many units must the division sell each year to achieve an ROI of 16%?
1. The following data are available for the Northwestern Division of Dempsey, Inc. and the single product it makes. Average operating assets $3,000,000 Annual fixed costs 560,000 Unit selling price 40 Variable cost per unit 24 How many units must the division sell each year to achieve an ROI of 16%?
Problem 9-48 The Philips Company is preparing a cash receipts schedule for the first quarter of 2005. Sales for November and December 2004 are expected to be $33,000 and $55,000, respectively. Budgeted sales for the first quarter of 2005 are presented here. The Philips Company Sales Budget For Quarter Ended March 31, 2005
Early in January 2010, Tellco, Inc. acquired a new machine and incurred $100,000 of interest, installation , and overhead costs that should have been capitalized but were expensed. The company earned net operating income of $1,000,000 on average total assets of $8,000,000 for 2010. Assume that the total cost of the new machine w
Hughes Satellite Corp. manufactures satellite dishes used in residential and commercial applications. For each unit the following costs apply: $50 for direct materials, $100 for direct labor, and $60 for variable overhead. The company's annual fixed overhead cost is $750,000; it uses expected capacity of 12,500 units produce
A. If you have two retail clothing stores have the following data: (Millions) Turner's Clothing Carla's Fashsion Sales $17 $78 Variable costs 10
Please help with the following problem. Company issues 100, $1,000 face value, 8% (stated rate), and 3-year U.S. corporate bonds on January 1, 2010 when the market rate for similar risk bonds is 10%. Show the calculation of the issue price of the bonds and the JE to record the issuance of the bonds. my answer is Step
EXERCISE 6- 5.Auburn Banking and Loan Company has six service departments: 1. Human Resources ( hires employees and manages benefits) 2. Duplicating ( performs copy services) 3. Janitorial ( provides routine cleaning services) 4. Accounting ( provides accounting services) 5. Graphic Design ( designs forms) 6. Food Se
Jackson Sales Company Selling and Administrative Expenses Budget For the Quarter Ended June 30, 2005 Apr May Jun Total Salaries $1,000 $1,200
A company develops computer software. When can the development costs be capitalized? When must that capitalization be stopped? Using Codification write a brief summary of your finding in a memo format Also include your Codification research references and notes (cut and paste from Codification) and attach these to the m
Blooper Industries must replace its magnoosium purification system. Quick & Dirty Systems sells a relatively cheap purification system for $12 million. The system will last 4 years. Do-It-Right sells a sturdier but more expensive system for $13 million; it will last for 5 years. Both systems entail $2 million in operating costs;
The budget director of Dollie Inc., with the help of the finance department, has compiled the following information for use in creating the budgeted income statement for January 20xx: a. Estimated sales for January Luxury dollhouse: 2,000 units at $200 per unit Standard dollhouse: 3,500 units at $150 per unit b. Esti
See the attachment. ? The dividends accounts shown as a expense in the other Revenue/Expense section of the income statement (T/F) ? If the company purchases manufacturing equipment during the year, this will be reflected as a cash outflow in the investing section of the Statement of Cash Flow. (T/F) ? Accrued Utilities Exp
Some of the reserves mentioned are illustrated with the accounts of Swire Pacific Limited shown in Exhibit 13-9. Swire Pacific Limited is based in Hong Kong and is one of the largest companies in the world. The primary operations of the company are in the regions of Hong Kong, China, and Taiwan, where it has operated for more th
See the attachment. Morris Corporation is publicly owned, and its shares are traded on a national stock exchange. Morris has 16,000 shares of $2 stated value common stock authorized. Only 75% of these shares have been issued, and of the shares issued, only 11,000 are outstanding. On December 31, 2012, the Stockholders' Equity
Depreciation continues to be one of the most controversial, difficult, and important problem areas in accounting. a. Explain the conventional accounting concept of depreciation accounting. b. Discuss its conceptual merit with respect to: the value of the assets, the charges to expense, and the discretion of management in selecting the method. c. Explain the factors that should be considered when applying the conventional concept of depreciation to the determination of how the value of a newly acquired computer system should be assigned to expense for financial reporting purposes (ignore income tax considerations). d. What depreciation methods might be used for the computer system? Describe the advantages and disadvantages of each. BRIEFLY Discuss
Depreciation continues to be one of the most controversial, difficult, and important problem areas in accounting. a. Explain the conventional accounting concept of depreciation accounting. b. Discuss its conceptual merit with respect to: the value of the assets, the charges to expense, and the discretion of management in selec
What are commonly used components when measuring economic damages in a wrongful discharge case? Describe each component and explain why it should be used in the damage calculation. -- The components include: Lost Wages: This includes all wages that would have been paid to the employee, including salary, bonuses, reimbursed expenses, and all other forms of direct and indirect compensation. This is used in the calculation because it is what the employee is directly out - on a wrongful basis. Lost tax payments that the employer would have paid: This includes FICA tax payments that the employer would have paid on behalf of the employee, and is included because it is the tax portion of the lost wages. Lost health insurance and other benefit payments that the employer would have paid: Includes all employee health and medical benefits, and other employee benefits, and is included because it is treated in the same way that a lost wage is treated by the courts in a wrongful discharge case. 12-15. What are the components of measuring the economic damages from the loss of household services? -- This applies typically when a person is injured or killed and can no longer perform household services. The components of measurement include examining what the amount of services were that the person contributed to the household before sustaining the injury or being killed. It involves an examination of their exact role and duties in the household. The second measurement is to determine how much of those same services the person can provide after the loss. This is applicable to those that have suffered injury. The final measurement is to then determine what the value is, of the services that were lost, or that can no longer be performed by the individual. 13-5. For what purposes do computer forensic specialists analyze electronic data? -- The analysis of data is performed to ensure that all forms of electronic evidence contained on the specific device being analyzed is preserved, as part of the discovery process in an investigation. Computer forensics has four main parts, which include identification, preservation, extraction, and the presentation of electronic data. By analyzing the data, the forensic examiner is then able to identify specific evidence and data from the electronic means used to analyze the electronic data. 13-7. In what ways can electronic evidence be destroyed so that it is no longer admissible in court? Explain your answer. -- People can go to all different types of extremes to destroy evidence, making it impossible to be used in court. With electronic evidence, computers are very susceptible to magnetic fields. There have been cases where the suspects have purposely exposed the computer or electronic device to a highly magnetic field, to destroy the data. Others have taken the computer or device, and if it was portable enough, completely slammed it against a concrete floor or other surface, to make the computer and data completely unreadable.
What are commonly used components when measuring economic damages in a wrongful discharge case? Describe each component and explain why it should be used in the damage calculation. -- The components include: Lost Wages: This includes all wages that would have been paid to the employee, including salary, bonuses, reimburs
Jefferson Company reported $4,000,000 of sales during the month and incurred variable expenses totaling $2,800,000 and fixed expenses totaling $720,000. A total of 80,000 units were produced and sold last month. The company has no beginning or ending inventories. What is the company's total contribution margin and contribution margin per unit? How many units would the company have to sell to achieve a desired target profit of $600,000? What is the company's break-even point in sales dollars? What is the company's margin of safety? What is the company's degree of operating leverage?
Jefferson Company reported $4,000,000 of sales during the month and incurred variable expenses totaling $2,800,000 and fixed expenses totaling $720,000. A total of 80,000 units were produced and sold last month. The company has no beginning or ending inventories. What is the company's total contribution margin and contributio
1. Glen recently graduated with and MBA, passed the CMA exam and received a CMA certificate, and took a job with a large corporation as a cost analyst reporting to the manager of a production line. Glen submitted his first overhead budget, and his manager has asked him to revise his estimated factory overhead rate by increasing
1. Crystal Glassware Company has the following standards and flexible budget data. Standard variable overhead rate................. $6.00 per direct labor hour Standard quantity of direct labor................2 hours per unit of output Budgeted fixed overhead........................$100,000 Budgeted output...................
1. Generally, tax strategies operate in two time frames - now and later. " Now" refers to the twelve months of the current tax year. "Later" refers to the long-range tax strategies that benefit taxpayer future. This includes maximizing the tax-deferred savings offered by a qualified retirement plan, such as a 401(k). One strat
Please help with the following problem regarding key statistics on Pfizer. Provide at least 300 words in your answer. Pfizer's book value per share is $11.71 but it's trading at almost twice that amount. Why are they different? See the following link before answering the question. http://finance.yahoo.com/q/ks?s=PFE+Key