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# Accounting

### Calculate basis in forming a corporation for Sam, Carl, Lucy and Sylvia

Sam, Carl, Lucy and Sylvia form Pine Corporation with the Following considerations: Basis to Fair Market Number of Transferor Value shares Issued From Sam Inventroy 30,000 96,000 30 * From Carl Equipment (\$30000 of depreciatio

What are the various types of consumption taxes? What are the justifications for each type Why are general sales taxes and excise taxes on liquor and tobacco often regressive? What are the major benefits and disadvantages of imposing user charges?

### Conversion of bonds: E-16 Gottlieb Corporation

E16-6 (Conversion of Bonds) On January 1, 2007, Gottlieb Corporation issued \$4,000,000 of 10-year, 8% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each \$1,000 debenture can be converted into eight shares of Gottlieb Corporation \$100 par value common stock after December 31, 20

### Computation of Ratios

Industry Average Actual 2009 Actual 2010 Current Ratio 1.3 1.0 Quick Ratio 0.8 0.75 Average Collection Period 23 Days 30 Days Inventory Turnover 21.7 19 Debt Ratio 64.7% 50% Times Interest Earned 4.8 5.5 Gross Profit Margin 13.6% 12.0% Net Profit Margin 1.0% 0.5% Return on To

### Calculating Margin and Taxes and Returns

1. Carson Corporation stock sells for \$ 17 per share, and you've decided to purchase as many shares as you possibly can. You have \$ 31,000 available to invest. What is the maximum number of shares you can buy if the initial margin is 60 percent? 2. You purchased a stock at the end of the prior year at a price of \$ 81. At th

### Decide which distribution intensity level - intensive, selective, or exclusive - is used for the following products, and why? (a) Land Rover spot utility vehicles, (b) M & M's, (c) special edition Barbie dolls.

Decide which distribution intensity level - intensive, selective, or exclusive - is used for the following products, and why? (a) Land Rover spot utility vehicles, (b) M & M's, (c) special edition Barbie dolls.

### Straight - line depreciation

2.) Phyllis believes that the firm should use straight-line depreciation for a capital project because it results in higher net income during the early years of the project's life. Joanna believes that the firm should use the modified accelerated cost recovery system depreciation because it reduces the tax liability during th

### Are the current accounting standards ethically based? Explain.

Are the current accounting standards ethically based? Explain.

### ABC Company: Accounts Receivable Turnover

Analysts maintain that two of the most important ratios are inventory turnover and accounts receivable turnover. You are analyzing ABC Company, a computer manufacturer. You notice that accounts receivable turnover this year is significantly lower than prior years. Provide three explanations that would be consistent with this

### Management accounting, problem 1-31

The managers of Quince Products (Problem 1-31) decide they will hire a management accountant to help them analyze the decision to expand their product line. They solicit bids from various accountants in the city and receive three proposals. In describing Accountant A: "I have recently advised the symphony

### FASB Codification Exercise using the Master Glossary

Access the FASB Codification ad http://asc.fasb.org/home to prepare responses to the following exercises. Provide Codification references for your responses. 1. Access the glossary ("Master Glossary") to answer the following. (a) What are trading securities? (b) What is the definition of "holding gain or loss"? (c) W

### Retirement plans at different employment establishments

What is the retirement plan in your place of employment? Do you think this is an advantageous and beneficial plan to the employees? How about to the company itself? Explain.

### Split off point, break even analysis

Step down method, Break-even point, Cost Variance, and Split-off point ************************************************************ 4 Blower Company is divided into four departments. Departments A and B are service departments and Departments 1 and 2 are operating (production) departments The services of the two servic

### Tax Base/ Temporary difference Questions

ABC Company has the following items in its audited financial statements for the year ended 31 March 2011. (i) Freehold land costing \$100 million is revalued to \$150 million. For tax purposes, there is no depreciation. Gain or losses on disposal of land at the revalued amount will be taxable. (ii) A machine cost \$200 millio

Assume that you are offering a freelance pizza delivery service for local pizza stores that do not have their own delivery service. Based on the going rate for pizza in your market area and the geographic market you plan to cover, create a breakeven analysis for your new business. You are free to negotiate a percentage of the fo

### This post addresses monthly payments compounded monthly.

You are prepared to make monthly payments of 340, beginning at the end of this month into an account that pays 6% interest compounded monthly. How many payments will you have made when your account balance reaches \$20,000.

### Increasingly, employees are being allowed to choose benefit packages from a menu of items. For instance, workers may be given a package of benefits that includes basic and optional items. Basics might include modest medical coverage, life insurance equal to a year's salary, vacation time based on length of service, and some retirement pay. But then employees can use credits to choose among such additional benefits as full medical coverage, dental and eye care, more vacation time, additional disability income, and higher company payments to the retirement fund. Using the theory of consumer behavior, how do you think flexible benefit packages would affect an employee's preference between higher wages and more benefits?

Increasingly, employees are being allowed to choose benefit packages from a menu of items. For instance, workers may be given a package of benefits that includes basic and optional items. Basics might include modest medical coverage, life insurance equal to a year's salary, vacation time based on length of service, and some reti

### How to Calculate Additional Funds Needed (AFN)

Calculation of Additional Funds Needed Baxter Video Production's sales are expected to increase from \$5 million in 2007 to \$6 million by 2008 or by 20%. Its assets totaled \$3 million at the end of 2007. Baxter is at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2007, current l

### Darius Company: Explain the October \$72,000 unfavorable income variance

See attached file. Darius Company operating budget for October had anticipated pretax operating income of \$75,000. Drew Mackenzie, Dariusas general manager, was therefore disappointed when, in early November, Dariusas controller gave him a report showing that only \$3,000 of operating income had been earned in October (see Exh

### Distributing a bonus pool

Distributing a bonus pool Four broad approaches to distributing the proceeds of a bonus pool in a profit- sharing plan are listed below: 1. Each person's share is based on salary 2. Each person receives an equal share 3. Each person's share is based on position in the organization (larger payments to people at higher le

### FASB and the GASB

Please compare and contrast the FASB and the GASB. Provide references .

### P17-34 Actual and Predetermined Overhead Rates Allison's Engines

Allison's Engines -- the month, the following events occurred: Materials costing \$6,500 were purchased on account. Direct materials costing \$3,000 were placed in process. A total of 380 direct labor hours was charged to individual jobs at a rate of \$15 per hour. Overhead costs for the month of January were as follow:

### Short and long term objectives

What is the difference among strategic, long-term, and short-term objectives? What is the relationship between objectives and goals? What are examples of this relationship?

### Unsuccessful interview of a perpetrator

Identify and discuss three items that could cause a perpetrator or informant's interview to be unsuccessful. Prior to the interview, how can the forensic accountant properly plan so these three items are not negative factors?

### contribution margin approach to estimate changes

How do companies use the Contribution Approach to Estimate the Effects of Changes in Variable Costs? Explain.

### New machinery was installed to replace a number of employees

New machinery was installed to replace a number of employees, who were paid an extra month's wages and dismissed. This amount was added to the cost of the machinery. Discuss the propriety of the charge. If it was improper, describe the proper treatment.

### Cost Accounting

Yellow Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Yellow should charge \$8 per order, 2% of the order's value for general delivery costs, \$1.25 per item, and \$30 for delivery. A year later, Yellow collected the following information fo

### absorption costing versus variable costing

What are the differences between Absorption Costing Versus Variable Costing? Give an explanation and a complete example.

### comparing costs using ABC with the plantwide overhead rate

The following data are for the two products produced by Aplan Company. Product A Product B Direct materials \$ 15 per unit \$ 24 per unit Direct labor hours 0.3 DLH per unit 1.6 DLH per unit Machine hours 0.1 MH per unit 1.2 MH per unit Batches 125 batches 225 batches Volume 10,000 units 2,000 units Engineering modificat

### ABC System

Aunt Ethel's Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Macaroon Sugar Buttercream Projected sales in units