On January 1, 2003, Sauder Company purchased a building and machinery that have the following useful lives, salvage value, and costs. *Building, 25-year estimated useful life, $400,000 cost, $400,000 salvage value *Machinery, 10-year estimated useful life, $500,000 cost, no salvage value. The building has been depreciated und
Coca-Cola and Pepsi are both very profitable soft drinks. Inputs for these products include sugar, bottles/cans, and soft drink syrup. Coca-Cola and Pepsi produce the syrup themselves and purchase the other inputs. They then enter into exclusive contracts with independent bottlers to produce their products. Use the five forces f
Please help answer the following questions. Identify one of the current or emerging forces that affect the CFO roles and discuss how this force specifically affects their roles. Have the financial market dislocations of the past few years changed your views? If so, how?
Why are capital assets subject to special rules for individuals? What are the rules and what is the tax impact?
Please help with an assignment by answering the following: - What are capital assets? - Identify some of the usual capital assets that an individual or business may own.
Describe the tolerable exception rate and how you might use this as an auditor. Explain how you might determine the rate you select.
When an organization introduces a new promotion to a customer, should the accounting department be proactive or reactive as these promotional decisions are made, especially when the new promotional offer could impact the organization financially? How the accounting department must respond when new promotions are offered for whic
When working as a revenue agent with the IRS we were required to ask the taxpayer to show records on how basis is computed. Many times it would result in an adjustment increasing the amount of gain reported. The formula to compute the gain or loss on the sale of property is equal to the amount received minus the basis of the
What is the difference between assurance and attestation services? Please provide examples of each.
Case Study James Watkins, an ambitious 22-year-old, started an entertainment business called Best Club after he graduated from California State University. Best Club initially was a business failure because James ignored day-to-day operations and cost controls. One year later, James was heavily in debt. Despite his debt, James
Fellow students in your fraud examination class are having a hard time understanding why statistics on fraud are so difficult to obtain. What would you say to enlighten them?
Both S-Corporations and LLC are known as flow-thorough entities. What are some differences between S-Corporations and LLC's?
Question 3 The Hotel is due to have a refurbishment but rather than follow the current policy of simply replacing furnishings with a similar style you would like to investigate creating three discrete levels of accommodation to pitch specifically at the three clients groups which make up the Hotel's primary markets: business,
Why might the effective tax rate for the extremely wealthy Warren Buffett be lower than the effective tax rate for a single taxpayer with an AGI of $75,000 (2011)?
What happens if two individuals form a S-Corporation? One person contributes $100,000 for 50% ownership, and the other person contributes services for a 50% interest. What are the tax consequences of this transaction?
We are identifying various deductions such as itemized deductions and business deductions. How do these expenses and other expenses affect adjusted gross income (AGI) and taxable income?
Company X recently reported net income of $385,000. The tax rate is 40 percent. The company's interest expense was $200,000. What would have been the company's net income if they would have been able to double their operating income (EBIT), assuming that the company's tax rate and interest expense remain unchanged?
How does the state of the economy influence the sales of the company's products or expanding into new markets? What are the steps in the decision-making process? What can be learned during this process? How does technology and instant communications affect management decision-making? Why?
Do you agree or disagree that FAS 157 was responsible for the financial meltdown in the U.S. Will the recent revision of FAS 157 help?
What characteristics of general computer systems people are most familiar with and how familiar are they with them? Which characteristics do they understand best? Which characteristics do they understand least?
E 11-10. On January 2, 2011, the Jackson Company purchased equipment to be used in its manufacturing process . The equipment has an estimated life of eight years and an estimated residual value of $30,625. The expenditures made to acquire the asset were as follows Purchase price $154,000 Freight charges 2,000
E 11-18. Wardell Company purchased a minicomputer on January 1, 2009, at a cost of 440,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $4,000. On January 1, 2011, the estimate of useful life was changed to a total of 10 years, and the estimat
A company allocates overhead based on square feet to their 2 divisions, F and G. they have $20,000 of indirect costs. Divsion F Sales $20,000 Direct costs $7,000 Square feet $8,000 Division G Sales $30,000 Direct Costs $5,000 Square feet $2,000 Calculate the profit of each division after allocation. Why should th
What factors must be taken into account in determining whether an individual with a communicable disease that is a disability is otherwise qualified for the job?
Explain the relationship between federal debt and annual yearly surpluses or deficits. Discuss the impact on interest rates and future tax burdens
The taxpayer Bob has a cell phone that he uses for business. Is he allowed to deduct the full value of his cell phone as a business expense? Bob decides to analyze his actual usage for the past year and determines that 60% of his data usage is personal (nonbusiness). Can he still deduct the full amount? Where might he turn fo
Your client has a growing business (structured as an partnership). She realizes that given her low AGI at this point in time, she will pay more federal taxes. However, once she can generate a higher AGI, she feels confident that all of the "tax breaks for the rich" will kick in and lower her tax liability to a very low level.
Another client, Ms. Dunham, has asked you to help her understand how her tax is computed. You need to provide Ms. Dunham with the following: An example of how to calculate the tax liability using the tax rate table and the tax rate formula for a taxpayer with taxable income of $55,000, filing status married filing jointly. A
Joyce Ingalls is the daughter of the late Fred Ingalls, who died August 15, 2010. One of the items included in this gross estate was a traditional (regular/non-Roth) IRA valued at several million dollars. Mr. Ingalls's estate will owe taxes, but no estate taxes had been paid by March 1, 2011, the date Joyce filed her 2010 indivi
Questions 2 & 3 are based on the following information. Harper is contemplating exchanging a machine used in its operation for a similar machine on May 31. Harper will exchange machines with either Austin Corporation or Lubin Company. The data relating to the machines are presented below. Assume the exchanges would have comm