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Gain or Loss Recognized on Exchanges

Arlington LLC traded machinery used in its business to a machinery dealer for some new machinery. Arlington originally purchased the machinery for $60,000 and it had an adjusted basis of $28,000 at the time of the exchange. The new machinery had a fair market value of $35,000. Arlington also received $2,000 of office equipment i

Calculating a Firm's Net Income: Art's Boutique

Art's Boutique announced that for the period ending December 31, 2011, it had revenues of $640,000. The company's costs (excluding depreciation and amortization) amounted to 75% of revenues, and Art's boutique had interest expenses of $40,000 and depreciation of 60,000. What is the firm's net income if the tax rate was 34 perc

Loaded Terminology and Legislation

The media frequently uses loaded terminology, but what is the outcome when legislators use loaded terminology? I think we all can agree that the economy is a hot topic and there are many theories on what should be done. I think one of the ways that officials slant the views is by using loaded terminology. Consider the typ

After-tax Earnings

Assume the pre-tax profit of $50,000 has been earned by a business, and the owner/proprietor wants to withdraw all of the after-tax profit for personal use. Assume the tax rate for a C corporation is 33%, while the rate for a person is 25%. Find the after-tax earnings available under the corporate and proprietorship forms of b

Management and Producing Returns

Please help answer the following questions. Should management only be concerned with producing returns for their investors or do they need to consider the needs of other stakeholders? Before the financial crisis I do not think that the loan officers paid close attention to quarterly financials. Currently, it probably depe

Temporary Employees

Please help with the following problem regarding temporary employees. Provide at least 200 words in the solution. Consider temporary employees who are employed by temporary agencies. How is this addressed in reporting for a company that is using the temporary agency? Would the temporary agency be considered a miscellaneous e

Helping Students See the "Big Picture" of Variance Analysis

Please help with the following accounting problem. Read the following ProQuest article: VanZante, N. (2007, April). Helping Students See the "Big Picture" of Variance Analysis. Management Accounting Quarterly, 8(3), 39-40, 42-47. Based on the readings for the week, discuss your opinion on the need for variance analysis in ei

Businesses and Job Cost Ordering

Please help with the following problem. Provide at least 300 words. Need help in researching a business that uses job order costing and understanding the complete breakdown of the job order costing (i.e. the process and the documents used to accumulate product costs) that the business uses.

Margin, Turnover, ROI, Cost of Capital, Residual Income and EVA

1. (a) Maria Stanford oversees her company's largest and most profitable investment center. She has asked you, as her staff accountant, to compute the center's ROI, residual income and EVA for the month of August, using the following information: August 2001 operating income $300,000 August 2001 sales

Krispy Kreme Bonus Plan - accounting abuse

1. A brief description of Krispy Kreme's annual cash bonus plan for top executives follows. One way Krispy Kreme executives can achieve the revenue target is to open new stores as fast as possible. Explain why this might alarm shareholders. 2. Why might it be important for the bonus plan to use the same EBITDA definition used

This posting addresses agency relationships and costs.

Suppose you and two friends each invested $100,000 in an oil and gas partnership. The general partner, XYZ Gamble, Inc., invests no cash but makes all operating decisions for the partnership, including where and how deep to drill for oil. Drilling costs plus a management fee are charged against the $300,000 of cash you and your

Components of an Annual Report

a) What are the optional elements that are often included in an annual report? b) What are the elements of an annual report that are required by the SEC? c) Describe the contents of the Management Discussion. d) Describe the contents of the Auditors Report. e) Describe the contents of the Selected Financial Data.

Analyzing Profit Analysis

Day Street Deli's owner is disturbed by the poor profit performance of his ice cream counter. He has prepared the following profit analysis for the year that just ended. Sales $45,000 Less: Cost of food 20,000 Gross profit 25,000

Operating Income for Greenville Corporations

Greenville Corporation is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows: Annual sales 3,000 unts Selling price per unit $309 Variable costs per unit: Production $130 Selling

Flexible Budgets: Standard Costs for Joe's Lawn Service

#1. Flexible Budgets: Joe's Lawn Service primarily mows lawns for residential customers. Management has determined direct labor hours is the primary cost driver and has developed the following cost equations based on direct labor hours: Grooming Supplies (variable) y= $0 + $4.00x Direct Labor (variable) y= $0 + $12.00x

Beverage Products, LLC: Evaluating Cost Center Performance

Beverage Products, LLC, manufactures metal beverage containers. The division that manufactures soft-drink beverage cans for the North American market has two plants that operate 24 hours a day, 365 days a year. The plants are evaluated as cost centers. Small tools and supplies are considered variable overhead. Depreciation and r

Breakeven Analysis for Luce and Morgan

Luce & Morgan, a law firm in downtown Jefferson City, is considering opening a legal clinic for middle- and low-income clients. The clinic would bill at a rate of $18 per hour. It would employ law students as paraprofessional help and pay them $9 per hour. Other variable costs are anticipated to be $5.40 per hour, and annual fix

Mixed Costs High Low Method

Whitehouse Company manufactures major appliances. Because of growing interest in its products, it has just had its most successful year. In preparing the budget for next year, its controller compiled these data*. Using the high-low method, determine the variable electricity cost per machine hour per machine hour? Determine

Computation of Unit Costs

Carola Industries, Inc., manufactures discs for several of the leading recording studios in the United States and Europe. Department 60 is responsible for the electronic circuitry within each disc. Department 61 applies the plastic-like surface to the discs and packages them for shipment. Carola recently produced 4,000 discs for

Business Operations In Pakistan

The company is currently engaged in business activities both nationally and internationally. On the international side of your company, the countries you are operating in are experiencing riots, strikes by their citizens, unconfirmed violence against their people by the government, and other atrocities. Your physical facilities


As an accountant, if you had a choice of working with one of the boards, FASB, GASB, or IASB, which one would you work with?

A Comparative Analysis between Monro and Tenneco

Please help me with a comparative analysis between Monro and Tenneco for the type(s) of retirement plans offered and the funding status of each plan. 1) Calculate the PBO (projected benefit obligation) and the FVPA (fair value of the planned assets) 2) Is the plan over or under funded? 3) Other post-employment benefits

The Microcredit Concept

Modern microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983s. In fact, it is often said to provide a solution which enables small business people to borrow capital to purchase fruit, livestock and materials without being exposed to unscrupulous or violent lenders. However to

Based soely on expeced value, should King open a branch office in California?

King, Inc., a sucessful Midwest firm, is considering opening a branch office on the west coast. Under normal economic conditions, with a 45% probability of occurring, King can expect to earn a net income of $50,000 per year. In a mini-recession, at 25% probability, King will earn $20,000. In a severe recession, at a 20% probabil

Calculating the Corporation's Book Value per Share

Information on shareholder's equity as currently shown on the books of a corporation is given as: Common shares ($2.00 par value) $350,000 Capital in Excess of Par $0 Retained Earnings $7,800,000 From this information, calculate the corporation's book value per share.


Axes are a part of fiscal policy and very controversial. Some politicians want to raise taxes for incomes over $250,000, representing the 2% highest incomes, and would also include budget cuts of approximately $4 trillion over the next 10 years. Another proposal wants to lower the maximum tax rate from 35% to 25%, leaving tax ra

Operating Segment Aggregation

1.) When can information about two operating segments be aggregated? 2.) How is accounting for pensions different than accounting for other post-retirement benefits? 3.) The controller of a public company commented that if the company needs to disclose the company's segments individually, the only people who will gain are