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# Accounting

### Comment on the firm's (XYZ Corporation's) performance measures.

Scenario XYZ Corporation is a law firm in Spain. Started in 2007 with just 2 lawyers, the firm has now grown to 30 lawyers and 4 branches in Spain. The firm services mainly Small Medium Companies and walk-in retail clients. Their business has been doing well as they are known for their quality legal services at affordable

### planning is a waste of time

The son of the owner of your company recently got promoted to the position of Vice President of Finance and Planning. However, he has said in meetings 'planning is a waste of time....things always keep changing. We just have to stay on top of things and be able to react to opportunity when it comes our way!' Do you agree? Is th

### ROI for each division and residual income

Capital inv. has three divisions. each division's required rate of return is 15% planned operating for 20x5 are as follows: A : operating income 15,000,000 investment 100,000,000 B : 25,000,000 125,000,000 C : 11,000,000 50,000,

### step down method

Your company has two service departments and two production departments. last year SD1 provided 60,000 hrs of service to SD2, 20,000 hrs service to PD1 and 40,000 hrs service to PD2. SD2 provided 30,000 hrs service to SD1, 10,000 hrs to PD1 and 40,000 hrs to PD2. Costs prior to allocation were \$200,000 in SD1 and \$200,000 in

### Relevant calculations for the aforementioned mileage problem.

Please help with Assume your jeep vehicle gets 15 mpg and at the time of purchase expected gasoline prices to average \$5 per gallon over the next three years. How many miles would you have to drive the vehicle in the next three years to make the guarantee more attractive than the \$4500 discount?

### What is the allowable range of transfer prices?

Your company has 2 divisions, one in the US and one in Ireland. The division in the US is taxed at a rate of 40% and the division in Ireland is taxed at a rate of 10%. The division in Ireland produces a product with a full cost of \$90/unit (translated into US dollars). This product has a market price of \$120/unit (in US dollars

### Explain operating segments of an enterprise.s SFAS No. 131 define an operating segment

Playing devil's advocate could you just not prepare financial information? Wouldn't it be advantageous to a company to not segregate the information with the hopes of maintaining a competitive advantage? Please explain if Pepsi is launching a new water product but they are in the infant stages of doing so wouldn't it be to

### accounting scenarios

1) Accounting standard setting has been characterized as a political process. Discuss this proposition giving an example. 2) Briefly explain what is meant by a subsequent event. Give two examples of subsequent events. 3) Briefly explain why the income statement is referred to as a change statement. 4) You have recently been h

### Tax issues for sale of land owned by a company

A company is doing very well, but the land the company owns is very valuable. A developer approaches the company and offers to purchase the land for \$3 million. What are some tax issues relating to the potential disposition of the land for the company and the owners of the business? Does the type of entity through which the b

### Allison's allowable deductions from AGI

Allison, who is single, incurred \$4,000 for unreimbursed employee expenses, \$10,000 for mortgage interest and real estate taxes on her home, and \$500 for investment counseling fees. Allison's AGI is \$80,000. Allison's allowable deductions from AGI are (after limitations have been applied) A) \$10,500. B) \$12,900. C) \$14,000.

### Partner Reporting of Partnership Items

Please help with the following problems. Rocky and Charlie form RC Partnership as equal partners. Rocky contributes \$100,000 into RC while Charlie contributes real estate with a fair market value of \$100,000. During the current year, RC earned net income of \$600,000. The partnership distributes \$200,000 to each partner. The

### Mr. and Mrs. West's adjusted gross income was \$90,000. During the current year they incurred and paid the following:

Mr. and Mrs. West's adjusted gross income was \$90,000. During the current year they incurred and paid the following: Publications (unreimbursed and related to employment) \$2,000 Tax return preparation fee 1,000 Dues to professional organizations 1,500 Fees for will preparation (no tax advice) 800 Life insurance premiums 1

### Consumer buying response Coca-Cola, Pepsi: Concepts of utility, income, substitution

What would be the consumer buying response to Coca-Cola if the price of Pepsi doubled? If the prices of Coca-Cola and Pepsi remained constant, what would be the consumer's typical buying response to these products if their income was reduced by 30%? Suppose all carbonated beverages tripled in price. How would the concepts of uti

### Assuming the consumer is rational, how can utility affect their economic decisions?

Assuming the consumer is rational, how can utility affect their economic decisions? Does utility lead to more or less customer satisfaction? Why or why not?

### Calculate Chris's tax liability or refund for 2010.

Chris, a single taxpayer, had the following income and deductions during 2010? Salary \$55,000 Interest on bank account 300 Tax-exempt interest 200 Deduction for AGI 4,000 Itemized deductions 8,000 Taxes withheld 6,500 Calculate Chris's tax liability or refund for 2010.

### Calculate Brad and Angie's tax liability or refund, assuming that they have 2 personal exemptions.

Brad and Angie had the following income and deductions during 2010: Salaries \$100,000 Interest income 10,000 Itemized deduction 16,000 Taxes withheld during year 14,000 Calculate Brad and Angie's tax liability or refund, assuming that they have 2 personal exemptions. They file a joint tax return.

### What is the amount of Frank's corporate income tax for the year?

During the current tax year, Frank Corporation generated gross income of \$1,900,000 and had ordinary and necessary deductions of \$1,400,000. What is the amount of Frank's corporate income tax for the year?

### What is the total tax paid on both corporate income and the corporate dividends?

Please help with the following problem. During the current tax year, Charlie Corporation generated gross income of \$1,800,000 and had ordinary and necessary deductions of \$1,300,000, resulting in taxable income of \$500,000. If Charlie Corporation paid qualifying dividends of \$200,000 to shareholders, all of whom are in the 2

### Introduction to Managerial Accounting

Management Accounting plays an important role in most organizations yet it is often misunderstood by those not directly employed or involved with management accountants. Using the website below, discuss the role and responsibilities of the Management Accountant. http://www.imanet.org/ima_home.aspx

### This posting addresses tax differences in different entities

Oprah is starting Oprah's Poodle Parlor and is considering alternative organizational forms. She anticipates the business will earn \$100,000 from operating before compensating her for her services and before charitable contributions. Oprah, who is single, has \$3,000 of income from other sources and other itemized deductions of \$

### block of stock

Sly and Jennifer are in the 33% tax bracket for ordinary income and the 15% bracket for capital gains. They have owned several blocks of stock for many years. They are considering the sale of two blocks of stock. The sale of one would produce a gain of \$12,000 while the sale of the other would produce a loss of \$18,000. For purp

### Keenie Beenie Partners has gross operating revenue of \$400,000

Keenie Beenie Partners has gross operating revenue of \$400,000, cost of sales of %150,000, employee salaries of \$40,000, a \$25,000 Section 179 expense deduction, \$10,000 of other depreciation, interest income of \$3,000, a \$4,000 capital loss, and a \$600 charitable contribution deduction. a. What are the partnership's bottom

### Defining the Elements of a Fraud

Please help with the following problem. Provide at least 200 words in the solution. Select a type of fraud, and identify (1) the perpetrator of the fraud, (2) the victim of the fraud, and (3) provide an explanation of what the fraud entails. Also, identify one internal control that could be implemented to reduce or prevent t

### accounting scandals

1. Have the scandals of the early 2000s helped managers prioritize ethics? Explain. 2. Have we learned our lesson as a society? Explain. 3. Do we now have sufficient checks and balances in place to prevent the crises of the 1990s and early 2000s? Explain. 4. What else can be done to reduce the likelihood of unethical abuses?

### Computing divisional income and RI and ROI

Eastern Merchants shows the following information for its two divisions for year one. Eastern Western Revenue....................................1,200,000 3,800,000 Cost of sales................................769,500

### Microelectronics Divisions and Transfer Pricing

Microelectronics is a large electronic firm with multiple divisions. The circuit board division manufactures circuit boards, which it sells externally and internally. The phone division assembles cellular phones and sells them to external customers. Both divisions are evaluated as profit centers. The firm has the policy of t

### You expect \$ 75,000 cash flow after tax for the next 10 years. Should you abandon?

Five years ago your firm installed a quick-lube store on Connolly avenue.Southwest cellular would like your store to convert to one of its own outlets. They have made you an offer that nets you \$600,000 after taxes. Your required return is 12%. a.- You expect \$ 75,000 cash flow after tax for the next 10 years. Should you aban

### Tax effect on the sale of blocks of stock

Q: Sly and Jennifer are in the 33% tax bracket for ordinary income and the 15% bracket for capital gains. They have owned several blocks of stock for many years. They are considering the sale of two blocks of stock. The sale of one would produce a gain of \$12,000 while the sale of the other would produce a loss of \$18,000. For

### Aquatic Manufacturing Department

Acquatic Manufacturing uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A, direct labor hours in Department B, and machine hours in Department C. In establishing the predetermined overhead rates for 2005 the

### the following accounts would normally carry a debit or a credit balance to increase the account:

I need help in order to determine whether the following accounts would normally carry a debit or a credit balance to increase the account: Computer equipment. Bonds payable. Common stock. Retained earnings. Cash. Goodwill. Wages expense. Note payable. Inventory. Tax liability. Patents. Prepaid insuranc