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Long-lived asset and imparment with FASB codification

1. How is "Impairment" defined in the Master Glossary? 2. Give one example of an event or change that would require a long-lived asset to be tested for recoverability. (Provide the Codification reference for your answer) 3. Should a long-lived asset that is held for sale be depreciated? (Provide the Codification referenc

Computation of AFN

Problem 12-9 Financing Deficit Garlington Technologies Inc.'s 2013 financial statements are shown below: Balance Sheet as of December 31, 2013 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180

What cost allocation methods are used for National Linen

National Linen launders commercial tablecloths, bedding, garments and rags for restaurants, medical facilities, hotels and auto repair shops. Why is the cost allocation method used by an organization an important part of its cost accounting system? Also, going back to the company (National Linen) what type of cost allocation

Analysis of Key Accounts: McDonald's & Wendy's

1. For 2011 and 2012, analyze the trends and compare revenues, cost of goods sold, accounts receivable, accounts payable, and inventory. 2. Which company shows the best performance? Explain. 3. How is the information you reviewed helpful from a managerial point of view? Explain. 4. Comment on how the income state

Intermediate Accounting: account classifications

1. The following are the common classifications used in a balance sheet: A. Current assets F. Current liabilities B. Investments G. Long-term liabilities C. Property, plant and equipment H. Paid-in-

Effect of transactions on assets, liabilities and net income

Can you assist with this project question? For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Tran

Allocation of Administrative Costs

Nashville Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and long-run monthly usage of staff hours for Operating Departments 1 and 2 follow: Dept. 1 Dept. 2 Total Short-run usage (hours) 45,000 55,000 100,000 Long-usage (hours)

Job and Process Costing

Distinguish between job costing and process costing. Describe the difficulties associated with each type. What can companies do in order to price products competitively and avoid some of these difficulties?

Global Book and Music Store, Direct, Sequential methods

Global Book and Music Store, Direct, Sequential (step down) methods Global Book and Music Store has two service departments, Warehouse and Data Center. Walter Burke, controller of Global Book and Music Store, wants department managers to be aware that their use of other service departments costs the firm a substantial amount

Activities, assets and capitalization of interest

1. Locate the Master Glossary in the FASB Codification, and answer the following questions: a. What is the formal definition in the glossary of the term "Activities" as it relates to property, plant & equipment? b. PFW Company is constructing a specialized machine for use in manufacturing its product. Construction had been on

Schedule D, Taxation

Gabe sold his business for $120,000 and transferred a building, FMV $80,000, land FMV $10,000; and furniture and fixtures, FMV $30,000 and adjusted basis $22,500. What is the value of goodwill and ongoing concern? An investment-use casualty loss is carried from Form 4684 to which line. Schedule A, Itemized deductions. line

Court rule for joint chequing accounts

Please analyze the 2 question below: 1. Steven had a joint checking account with his mother at City National Bank. Between January and May 1990, a number of checks were allegedly forged on the account. Steven asked City National to recredit the account for the amount of the checks, but the bank refused. In March 1992, Steven

Alomar Co: Cost Account Sales Value at Split Off Method

Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows: DIRECT MATERIALS $67,900 DIRECT LABOR 34,000 OVERHEAD 25,500 At the split-off point, a batch yields 1,400 barlon, 2,600 selene

Inventory valuation methods: GAAP

1. Are there any other inventory valuation methods acceptable under GAAP besides LIFO, FIFO, average cost and specific identification? If so, when is it appropriate to use the other method(s)? (Provide the Codification reference for your answer) 2. What does the Codification say about consistency regarding the application of

Business Combination (VIEs and Consolidation statements)

Please treat the following - (a) (b) and (c) as separate units: (a) Bay Company owned 70% of the voting common stock of Clay Corporation. Clay Corporation owned 20% of Bay Company. For 2011, Bay Company and Clay Corporation reported net income (not including the investment) of $600,000 and $300,000 respectively. Bay Company

Financial Analysis - Case Study

Module 1: Case Study A. What effect did the expansion have on sales and net income? What effect did the expansion have on the asset side of the balance sheet? What effect did it have on liabilities and equity? The sales increased by $2.4 million in 2013 over 2012. The net income decreased by $183,096. The assets increa

Greenwich PLC: Transfer Pricing Policies

Greenwich PLC A mediator has been appointed by the head office of Greenwich plc to agree the purchasing of products X and X100. The original agreement was for the North Division to purchase X and the Essex Division to purchase X100 and the level of purchases to remain the same as the previous year. The mediator appointed

HSBC Drug Cartel Money Laundering Guide

Define the major problem or problems. Indicate how the problems are related to one another: What has happened to the key players since the events in this case? Use appropriate references supporting problem definition and subsequent experience of key players. Analyze the situation. Explain the mechanisms that are causing the

Governing authorities over financial reporting

You have recently hired several new members to your team who will be assisting with financial statement analysis for your clients. As part of their training, you want to make sure that they fully understand the requirements of the SEC regarding financial reporting and the tools available to analyze the financial performance of a

Production Budget, CVP Analysis, Relevant Costs

1. Palermo Company estimates that unit sales will be 10,000 in Quarter 1; 12,000 in Quarter 2; 15,000, in Quarter 3; and 18,000 in Quarter 4. Management desires to have an ending finished goods inventory equal to 25% of the next quarters expected unit sales. Prepare a production budget by quarters for the next six months in 20

Accounting Brief: Health Care Organizations

Outline some of the similarities and differences in accounting and reporting among (a) private, not-for-profit health care organizations, (b) governmental health care organizations, and (c) private, for-profit health care organizations. Include the sources of GAAP, accounting and reporting for equity accounts, and statements req

Participating in an employer retirement plan

Karen is single and is an active participant in her employer retirement plan. She contributed $5,500, the maximum amount allowable, to an individual retirement account (IRA). For each of the following, select the best answer: 1. ___ She is early in her career and had AGI of $50,000. She expects that when she retires she will be

Contribution margin ratio, degree of operating leverage etc

Mr. Labler owns and operates Labac Inc. and Mr. Capler owns and operates Capac Inc. Both firms produce and sell a relatively new product called Acerr. Since the product is relatively new, these are the only two firms in the Acerr industry. Labac is very labor intensive with very little machinery. In contrast, Capac is very

Partnership Income Taxation

Diamond Co. and Bill are equal partners in the calendar year F & F Partnership. Diamond Co. uses a fiscal year ending June 30, and Bill uses a calendar year. Diamond Co. receives an annual guaranteed payment of $50,000. F & F's taxable income (after deducting Diamond Co.'s guaranteed payment) is $40,000 for 2009 and $50,000 for

Intangible Assets: Eli Lilly & Company

Required: Refer to Eli Lilly's 2012 annual report to answer the following questions. The 2012 annual report of Eli Lilly & Company can be found here: 1. What time frame does Eli Lilly use to amortize its finite-lived intangible assets? 2.

Scottsdale Arizona CAFR: find disclosures in 2012 report

Please answer the following questions by using the city of Scottsdale Arizona's CAFR ending June 30, 2012. A. Examine the governmental fund financial statements. Are any major capital projects funds included? If so, list them. Attempt to find out the nature and purpose of the projects from the letter of transmittal, the no

National Linen Contribution Income Statement

What makes a contribution income statement unique? Using the company (National Linen) discuss how a contribution income statement could be used to improve planning in that particular company.