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Accounting Frauds by Health Care Providers & the Fraud Triangle

Identify and explain at least 3 accounting frauds that are commonly perpetrated by health care providers. Explain the financial and nonfinancial cost of the types of fraud that you identified above. Show how health care organizations can use the fraud triangle (situational pressures, opportunity, and rationalization) to pr

Shifting Manufacturing Overhead Costs

When activity based costing is used, why do manufacturing overhead costs often shift from high-volume products to low-volume products? What type of costs should not be assigned to products in an ABC system?

Job Order Costing for AHDI Corporation

AHDI Corporation uses a job-costing system at its plant. The plant has a machining department and a finishing department. The machining department allocates overhead to the jobs based on machine hours and the finishing department allocates overhead to the jobs based on direct labor costs. The budget for the plant is as follo

Construct a spreadsheet to solve current price of bonds

Spreadsheet Assignment Karman Company has two different bonds currently outstanding. Both bonds have a par value of $26,500 and a maturity of 19 years. The required return on both bonds is 10 percent, compounded semiannually. Bond M makes no payments for the first 7 years, then pays $1,600 every six months over the su

Forensic Accounting and Fraud Examination: And the Fraud Continues

Forensic Accounting and Fraud Examination Case Study 1: And the Fraud Continues 1. Discuss the internal control weaknesses that existed at MCI that contributed to the commission of this fraud. 2. Identify and justify the approach you would take if you suspected fraudulent activity within an organization where you work. 3

Government and Not for Profit

Can someone summarize some basics about proprietary funds? Just a few basic comments like what they are, what accounting method applies, what are some characteristics of them, why do governments have them?


13-2A Contex Corporation reports the following components of stockholders' equity on December 31, 2011. Common stock - $10 par value, 50,000 shares authorized, 20,000 shares issued and outstanding..................................$200,000 Paid-in capital in excess of par value, common stock................ 30,000 R

Research Methodologies and the use of accounting information

1. Compare and contrast the deductive, inductive and pragmatic research methods. 2. Discuss human information processing research and the consequences of its findings on accounting. 3. Describe all sources of accounting information that could contribute to an investor's decision to buy, hold or sell a stock. 4. Eva

Real Option: Exclusive Rights

How important is it that an organization have an exclusive right to exercise a real option? That is, can we really say that an option being considered has value if competitors may exercise it also?

ACC/548 Govt & Not-forProfit

GASB Statement 34 is a pretty big deal in government accounting. It mandates that governments' basic financial statements include two separate but related sets of statements. 1. What are these two separate but related sets of statements? What are their different purposes? What is the fundamental difference between the two? 2

Accounting: Type of Account

1. Jan. 2 Invested $10,000 cash in business in exchange for common stock. 3 Purchased used car for $4,000 cash for use in business. 9 Purchased supplies on account for $500. 11 Billed customers $1,800 for services performed. 16 Paid $200 cash for advertising. 20 Received $700 cash from customers bill

Variable versus Absorption Costing

Buddy's Baseball Bat Manufacturing produced 80,000 baseball bats in 2005. The company sold 60,000 bats at a selling price of $50 a bat. The company had the following costs related to the production of 80,000 bats. Direct Materials $800,000 Direct Labor $400,000 Variable Overhead $250,000 Fixed Ove

Nonseparately computed income, ordinary income, stock basis

1. Sentilles, Inc., a calendar year S corporation, incurred the following items this year. a. Calculate Sentilles's nonseparately computed income. b. How much ordinary income or loss is reported by Brittany Nelson, a 25% shareholder? § 1231 gain $ 11,000 Tax-exempt interes

Section 61 of the IRS Code

Section 61 of the IRS Code defines income as "income from whatever source derived unless otherwise excluded." In determining income, several key concepts have evolved from this definition. Explain the following concepts and provide at leas one example of each. Explain which concept you think is most beneficial from a taxpayer's

A key goal of tax planning is to legally minimize or defer taxes. This is done by focusing on key components of taxable income. How can timing strategies and income-shifting strategies be used to affect deductions for adjusted gross income (AGI), dependency exemptions, itemized deductions, and tax credits? Provide at least one example for each.

A key goal of tax planning is to legally minimize or defer taxes. This is done by focusing on key components of taxable income. How can timing strategies and income-shifting strategies be used to affect deductions for adjusted gross income (AGI), dependency exemptions, itemized deductions, and tax credits? Provide at least one e

Taxation: Date to complete exchange transaction; basis in property acquired.

For a transaction as a like kind exchange the property must received by the earlier of the due date including extension of the return for the year in which the transfer of the property being exchange occurred or by what day after the property given up in the exchange is transferred. A. 30 days after the transfer B. 60 days a

Taxation: Condemnation award gains; replacement real property

William Stevenson sold his warehouse to a public utility for $24,000 under a threat of condemnation. He paid $25000 for the property and spent an addition $1000 for a new roof. He had claimed $3600 depreciation in conjunction with the condemnation award, Mr. Stevenson paid $201 in legal fee. Mr. Stevenson A. Realize no gain

Taxes: Form 6252 and Form 4797. Installment sale reporting

Before completing form 6252 and 4797 for an installment sale of real property, the tax professional would manually A. Determine the gain on the sale for each year of the installment sale B. Determine the return of capital and installment of gain on the sale C. Determine the interest to be paid for each year of the installme

Taxation: Business equipment sale; installment sale

1. January 2008, Shari purchased a $20,000 piece of equipment for exclusive use in his business. She claimed a $6,000 section 179 deduction and $6,654 MACRS depreciation. She sold the equipment in November 2010 for $7,000. What is the amount and type of gain or loss and where on form 4797 does Shari report the sale? A. $346 s

Innocent Tax Relief Clause

Which of the following elements of innocent spouse relief is the most difficult to prove A. Joint return may have been filed B. The joint return must contain an understatement of tax attributable to an erroneous item of the other spouse C. The spouse seeking relief must establish that he or she did not know, and did not hav

Jordan Broadcasting Company: EPS Before and after Stock Issue

Jordan Broadcasting Company Solution: Shares Outstanding 8,000,000 a) Earnings per share before stock issue = Earnings $24,000,000 New Stock Issue 3,000,000 Earnings per share after stock issue = Price of new shares $40 P/E 23 b) Earnings per Share = P/E = Stock Price =

S Corporation versus Partnership: Taxes & Liability

Please help me with an assignment by discussing the following questions: Are the tax consequences of the formation of a partnership similar to those of S corporations? How? If there are differences, how and why are they different? Please include some references for further investigatory purposes.

Intermediate Accounting II - Recording Taxes

ACC423 - Intermediate Accounting II Problem 1: The following information pertains to OMV Company for 2013: Deferred Tax Liability, January 1: $76,000 Related Cumulative Temporary Difference December 31: $240,000 Pretax Accounting Income: $627,000 Taxable Income: $502,000 Tax Rate: 38% The cumulative temporary di

Special Order Effect on Company's Total NOI

A customer has asked Clougherty Corporation to supply 4,000 units of product M97, with some modifications, for $40.10 each. The normal selling price of this product is $48.00 each. The normal unit product cost of product M97 is computed as follows: Direct Material - $18.50 Direct Labor - $1.20 Variable Mfg OH - $8.40 Fixe

Finding Debt, Equity and Number of Shares: Gulf Oil

Gulf Oil Company plans to buy back 1 million shares of its own stock from its cash reserves at $40 a share. This will increase the bankruptcy costs by $10 million, and the debt/assets ratio from 20% to 25%. Using careful reasoning, find the following: (A) The total value of the company, its debt and equity, before the buyback

Cost Flow Assumption

Milford Company had 500 units of "Tank" in its inventory at a cost of $4 each. It purchased, for $2,800, 300 more units of "Tank." Milford then sold 400 units at a selling price of $10 each, resulting in a gross profit of $1,600. The cost flow assumption used by Johnson is? Be sure to show your work.