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Norr and Caylor: Net Income and Balance

Norr and Caylor established a partnership on January 1, 2010. Norr invested cash of $100,000 and Caylor invested $30,000 in cash and equipment with a book value of $40,000 and fair value of $50,000. For both partners, the beginning capital balance was to equal the initial investment. Norr and Caylor agreed to the following proce

Incremental Analysis Net Income

See the attachment. Benson, Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Value at Split-off Point C

Products and Period Costs Classification

M17-14 Classification of products and Periods Costs Classify the following costs incurred by a manufacturer of golf clubs as product costs or period costs. Also classify the product costs as direct materials, or conversion costs. a. Depreciation on computer in president's office b. Salaries of legal staff c. Graphite sh

forensic accounting

Identify one category of evidence accumulated during a fraud investigation, and explain what types of items are classified as such. How does the forensic accountant work with the type of evidence you selected? Identify a challenge the accountant faces in dealing with this evidence during the investigation process.

Accounting Errors/Corrections

1. Rodney Company's December 31 year-end financial statements contained the following errors: December 31, 2010 December 31, 2011 Ending inventory .......... $4,000 understated $3,600 overstated Depreciation expense ...... 800 understated -- An insurance premium of $3,600 was prepaid in 2010 covering the years 2010,

Reconciling Pretax Income and Taxable Income

19-2 (One Temporary Difference, Tracked for 4 Years, One Permanent Difference, Change in Rate) The pretax financial income of Parker-Gregory Company differs from its taxable income throughout each of 4 years as follows. Pretax Taxable Year Financial Income Income Tax Rate 2007 28

underinvesting and overinvesting, transfer price strategies

E 12-13 Explain why the senior managers at Quantum have an incentive to overinvest: Explain why senior managers at Aquafinn have incentive to underinvest: P 12-16 Suggest a transfer price for the fabric assuming that the Fabric Division is operating at only 60% capacity due to a surge in popularity of easy care fabri

Basis for property owned by person and corporation, and tax

I have this problem for a practice exam, and am stumped. For the corporation's basis of $40,000, since corporations don't get stepped-up basis, however I am not sure if that is right. Parts b-d I really don't have a clue (was eric's basis $100,000 or $125,000?), and would appreciate help from a qualified professional. Probl

Financial Data Reported by Mac Company

Please see attachment for better formatting. AE10-7 The following financial data were reported by Mac Company for 2007 and 2008 ($ in millions). MAC COMPANY Balance Sheets (partial) 2008 2007 Current assets Cash and cash equivalents $2,406 $1,799 Accounts receivable, net 3,824 3,349 Inventories

Fehr Co: Prepare a computation of the carrying value of the patent

24. Fehr Co. purchased a patent from Wells Co. for $180,000 on July 1, 2005. Expenditures of $51,000 for successful litigation in defense of the patent were paid on July 1, 2008. Fehr estimates that the useful life of the patent will be 20 years from the date Directions: Prepare a computation of the carrying value

EOQ and Finanical Effecs Where Disounts Offer on Bulk Buying

Drake Electronics manufactures a number of electronic devices. The company got its start during World War II by manufacturing radio communications equipment for the military. However, today one of their major products is a liquid crystal display (LCD). Their LCDs are used in a variety of applications, including cockpit displays.

Joseph T. Wells founder Association of Fraud Examiners(ACFE)

Visit the Association of Certified Fraud Examiners Web site and read a short introduction on Joseph T. Wells ( (Hint: He was not only the founder but is listed as an instructor.) a. What is Well's background before becoming chairman of the Association of Certified Fraud Examiners? What major aspects of h

Generate a Sample from a Random Number Table

See attached file. The management of AAAA Company has observed that the company's cash outflows have been increasing much more rapidly than its inflows. Management cannot understand the change; from its perspective, it has been "business as usual." Management has asked you, a fraud expert, to help them understand what is goin

types of costs

Classify each of the following costs incurred in manufacturing bicycles as variable (V), fixed (F), or mixed (M) cost (using number of units produced as the activity measure). Also indicate whether the cost is direct material (DM), direct labor (DL), or overhead (OH). Wayside Machine Tool Company purchased a $600,000 welding

Environmental Green Accounting at Apple Corps Ltd.

Strategic Management Accounting Goal: detailed analysis on Environmental Green Accounting development in accounting information and strategy. Selected: Apple Corps Ltd. 1) Please introduce Apple, highlights its definition of Green Accounting, and presents a chronology of key events in its development of its Green Accoun

types of fraud

In each of the following examples, I need assistance identify whether it is an employee embezzlement, management fraud, investment scam, vendor fraud, customer fraud, or miscellaneous fraud. Marcus bought a $70 basketball for only $30, simply by exchanging the price tags before purchasing the ball. Craig lost $500 by inve

Cal Smith Jr. is the night manager at a local doughnut shop that is doing very well. The shop sells doughnuts 7 days a week, 24 hours a day. Cal runs the graveyard shift by himself, since none of the other employees want to work at night. Since opening six months ago, Cal has not been able to find anyone to work for him and therefore has never missed one day of work. Cal makes his deposit every morning before going home. Cal feels that he is overworked and underpaid. The franchise owner, Kenny Jones, has praised Cal for his hard work and dedication to the company. Kenny's only concern is that, once or twice a week, an entire batch of traditional glazed doughnuts has been thrown away because of over-baking. Despite these problems, Cal maintains a clean work environment and is considered a valuable employee. Recently, Cal has yelled at people on shifts before and after him for seemingly insignificant reasons. He was hired as manager because he gets along with everyone and is usually easygoing. His recent irritability could stem from the fact that business is slowing down and he does not have much interaction with anyone at night. He also has been complaining that he has not been getting very much sleep. One day, Cal came to work in a new BMW M3, the car of his dreams. Cal said that his dad helped him buy the car. 1. What areas of the business are most at risk for fraud? 2. Identify any symptoms of fraud that appear to exist at the doughnut shop. 3. What steps could be taken to reduce opportunities for fraud?

Cal Smith Jr. is the night manager at a local doughnut shop that is doing very well. The shop sells doughnuts 7 days a week, 24 hours a day. Cal runs the graveyard shift by himself, since none of the other employees want to work at night. Since opening six months ago, Cal has not been able to find anyone to work for him and the

Confused on MC Questions - Must know the material.

Some questions I am confused on. Please explain? I have some notes underneath some. 1) On January 1, 2011, Nana Company paid $100,000 for 8,600 shares of Papa Company common stock. These securities were classified as trading securities. The ownership in Papa Company is 10%. Papa reported net income of $56,000 for the year end

Accounting Operating Expenses Net Income


proprietary theory

Why would a firm want to operate under the proprietary theory? What are the advantages? the proprietary theory: It is particularly applicable to a sole proprietorship - couldn't it be argued that all businesses are operated under the proprietary theory? shouldn't all members of management be looking out for themselves and to

Enterprises Manufacturing New Products

E5-2 (b-d) Kozy Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below. Output in Units Rent Expense Direct Materials 1,000 $5,000 $4,000 2,000 5,000 6,000 3,000 5,000 7,800 4,000 7,000 8,000

Green Environmental Accounting Details

Please explain in detail what is environmental accounting? Please explain in detail what is Green environmental accounting? Please explain with UK accounting standard point of view. I will be doing an essay on what is environmental accounting and I will be using empirical studies to support my essay. Please suggest some p

Amount of trade receivables and total cost per unit

Please answer the following problems (see attached file for data) During July, sales of $350,000 were made of which 20% were in cash. Credit customers paid $303 800 after deducting a 2% cash discount. How much did the trade receivables (debtors) owe to the business at 31 July? A factory produces a product with a variable

pretax financial income, income tax expense, deferred income payable

The following facts relate to McKane Corporation 1. Deferred tax liability, January 1, 2010, $60,000 2. Deferred tax asset January 1, 2010 $20,000 3. Taxable income for 2010, $115,000 4. Cumulative temporary difference at December 31, 2010 giving rise to future 5. Cumulative temporary difference at December 31, 2010 giving

This posting addresses the presentation of deferred taxes.

At December 31, 2010 Cascade had a net deferred tax liability of $45,000. An explanation of items that compose the balance is as follows Temp differences: Resulting balance in deferred taxes: -Excess tax depreciation over book depreciation $200,000 -Accrua