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Business Law

Dracca, Inc

Dracca, Inc. ("Dracca") is a publicly-traded U.S. corporation that manufactures and distributes baby equipment in seven countries. It is based in St. Louis, MO, but has manufacturing facilities in Philadelphia, Sacramento, and Indonesia. Key products include: â?¢ Strollers â?¢ High Chairs â?¢ Cribs â?¢ Pack-n-Play

Long-term assets are defined as assets that extend benefits beyond the coming fiscal year or operating cycle only tangible assets that extend benefits beyond the coming year or operating cycle, whichever is longer assets that are depreciated for a maximum of 40 years assets that extend no future benefits to a company 2. On January 1, 2007 a Medical Testing Laboratory acquired new blood processing equipment costing $400,000. The equipment has an estimated useful life of 10 years and an estimated residual value of $50,000. After making all necessary calculations and entries on December 31, 2008, what is the accumulated depreciation to date and book value of the equipment? (Assume the straight-line method is used.) Accumulated Depreciation Book Value as of as of December 31, 2008 December 31, 2008 $70,000 $330,000 $70,000 $280,000 $35,000 $365,000 $35,000 $315,000 3. When companies have a temporary surplus of cash, they often invest it in short-term marketable securities long-term marketable securities intangible assets property, plant, and equipment 4. A bond is purchased at a discount. What will happen to the net carrying value of the bond on the balance sheet as its maturity date approaches? stays the same increases decreases cannot be determined from the data given 5. Which of the following are included as part of the cost of plant assets? amount paid for the asset only the cost of site preparation and installation of the asset only construction costs to make assets usable all of the above are included as part of the cost of plant assets 6. Marbella Company has an investment in stock, classified as available-for-sale, with the following information at December 31, 2007: Cost = $240,000 Market value = $280,000 How would Marbella report this information? unrealized holding gain of $40,000 added to stockholders' equity realized gain added to the income statement of $40,000 unrealized holding gain deducted from stockholders' equity of $40,000 unrealized holding gain added to the income statement of $40,000 7. Intangible assets would include patents, copyrights, trademarks, and goodwill. True False 8. Which of the following statements is correct concerning investing activities? they involve obtaining and managing financial resources they use financial resources to acquire items to sell in the normal course of activities they use financial resources to acquire assets a company needs to produce and sell its products they involve buying and selling a company's own stock 9. Assume a building was purchased for $250,000 and used for four of its estimated 10-year life. It has residual value of $50,000 and the straight-line method is used for depreciating the building. The book value of the building after the four years' of usage would be reported on the balance sheet at $20,000 $80,000 $120,000 $170,000 10. Cash received from the sale of long-term assets is reported as an operating activity a financing activity an adjustment to stockholders' equity an investing activity 11. Depreciation and amortization reduce net income and cash flow from operating activities reduce net income but increase cash flow from operating activities reduce net income but have no direct effect on cash flow from operating activities have no direct effect on net income or cash flow from operating activities 12. Which of the following is NOT true? the source of financing for plant assets does not affect the way assets are reported on the balance sheet intangible assets provide legal rights or benefits to a company one of the four categories of assets on the balance sheet includes the value of management and employee skills long-term investments are investments in the debt or equity securities of other companies 13. The excess of the purchase price of a company over the fair market value of its net assets is known as surplus amortization goodwill capital 14. Accelerated depreciation results in lower net income in earlier years and higher net income in later years is used more often on the income statement than is the straight-line method leads to higher book values for depreciable assets than does the straight-line method allocates larger portions of cost to later periods than to earlier 15. Emergent Markets Corporation purchased a machine for $200,000 on January 1, 2007. The estimated life is 10 years. What is the book value on the December 31, 2009 balance sheet assuming straight-line depreciation is used and estimated residual value is zero? $180,000 $160,000 $140,000 $ 60,000 16. Which of the following would NOT be included in property, plant, and equipment? inventory land equipment buildings 17. Meteorite Company sells its Available-For-Sale stock investment at a price of $61 per share. It had originally been purchased at $20 per share and its most recent adjustment had been to a market value of $32 per share. What was the per share realized gain or loss on sale? $29 realized gain $41 realized gain $12 realized loss $73 realized gain 18. Plant assets are reported on the balance sheet at their fair market value. True False 19. Murray Company purchased a 5%, $5,000, 10-year bond for $4,800 at the date of issue. The interest revenue shown on Murray's income statements over the life of the bond will total $2,500 $2,700 $2,300 $2,600 20. Quick Freight Trucking owned a truck which cost $30,000 when it was purchased on January 1, 2007. It had accumulated depreciation of $18,000 at December 31, 2008. The company originally estimated the truck would have a residual value after using it for four years of $3,000. It sold the truck for $22,500 cash on January 1, 2009. The amount of gain (loss) on the sale of the truck was $4,500 gain $19,500 gain $1,500 loss $10,500 gain

1. Long-term assets are defined as assets that extend benefits beyond the coming fiscal year or operating cycle only tangible assets that extend benefits beyond the coming year or operating cycle, whichever is longer assets that are depreciated for a maximum of 40 years assets that extend no futu

What types of intellectual property are used at your organization? How are they protected? What are the advantages and disadvantages of a noncompete clause as opposed to a nondisclosure clause? What privacy and security issues arise when conducting business on the Internet? Provide examples.

What types of intellectual property are used at your organization? How are they protected? What are the advantages and disadvantages of a noncompete clause as opposed to a nondisclosure clause? What privacy and security issues arise when conducting business on the Internet? Provide examples.

Key question a court needs to answer

1. What is the key question a court needs to answer regarding the conduct of the defendant when assessing whether the conduct was the proximate cause of the injuries in the case. 2. The elements required to establish a negligence case are 1) legal duty, 2) breach of duty, 3) proximate cause, and 4) actual harm. True Fa

Foreign Corrupt Practices Act.

1. How does the Foreign Corrupt Practices Act affect supply chain management? 2. How does it facilitate or impede exports and global collaboration?

Business Law

5. Five Commerce City police officers were summoned to break up a disturbance at a local party of teenagers. At the party, Ralph Crowe, who had consumed eight cups of beer and three cups of alcoholic punch, became rowdy and had to be detained by the officers. The police released Ralph after receiving the assurances of his brothe

Business Law

While browsing through a used car lot, Ortega was approached by a fast-talking salesperson who said, 'I've got a beauty that just came in. Take a look at that baby," pointing to a shiny, red Mustang. "It's a jewel, and I can let it go at a good price. You won't find a better car for the money anywhere." "What'll it get for mile

The Statute of Frauds and The Rights of Third Parties

Why should you make sure all details of an agreement are included in a contract? Dyer purchased a used Ford from Walt Bennett Ford for $5,895. She signed a written contract, which showed that no taxes were included in the sales price. Dyer contended, however, that the salesperson who negotiated the purchase with her told her

What are the differences between substantive law, procedural law, criminal law, civil law, common law, and statutory law? Provide examples of each. What U.S. Constitution amendments were implemented to protect the rights of businesses and organizations?

What are the differences between substantive law, procedural law, criminal law, civil law, common law, and statutory law? Provide examples of each. What U.S. Constitution amendments were implemented to protect the rights of businesses and organizations?

Functions and role of law in business/society

Resource: Case Brief Cipollone v. Liggett Group, Inc., "Commerce Powers," (see attached) Define the functions and role of law in business and society. Discuss the functions and role of law in your past or present job or industry. Properly cite at least two references and format paper in APA format

Business Law Repealed Cases

Q1) A national scandal has erupted. Last week, while at her gym, a woman took a picture of one of former President George W. Bush's daughters in the shower with her new cell phone camera, and the picture has been disseminated throughout the world via the world wide web. Outraged, Bush authorized the Federal Commerce Commission

four major sources of legal liability

Four major sources of legal liability: 1. Liability to clients 2. Liability to third parties under common law 3. Civil liability under federal securities laws 4. Criminal liability Fully examine and present the topic Fully compare and contrast the topic to pre and post Sarbanes-Oxley Fully explain the impact the topic

On-Line Auctions: Beware of Kid Bids; Drawbacks Online Auctions

Research on-line auctions using the Internet. Using your research, answer the questions: Why should you beware of "kid-bids" (bids by children)? What are other drawbacks to on-line auctions? List websites you quote or cite at the bottom of your comments.

Legal Issues to Deal With as a Company If You Expand There

Your team is a large U.S. corporation that manufactures rubber tires, and you want to begin manufacturing and distribution in another country. As a team, choose a country that you think you would want to start a manufacturing plant in. As a Secretary: Research and write on the following issues: ?What are some of the legal

Discrimination Torts and Laws

When employees engage in improper workplace conduct, their employers are subject to liability. Not only can employers be held liable for employee torts, but they can also be held liable for other legal violations, such as discrimination. HR professionals need to be aware of these liabilities and help to educate employees about a

Advantages & Disadvantages of Each Business Structure

Assume that you are planning to open your own business. Describe your business and complete the matrix pertaining to the various types of legal business structures available to your start-up businesses. Identify the resources you use in your research and present them in proper APA format in the references section at the end of t

Legal Aspects of Business Decisions

Please prepare a case brief, using the web page below: "How To Brief A Case" (http://www.4lawschool.com/howto.htm) I have to follow these guidelines when preparing the case briefs. To prepare the stated case brief, I have to use: "The Matimak Trading Co. v. Khalily and D.A.Y. Kids Sportswear Inc. case and prepare a case b

Laws, Regulations and Labor

?Summarize the laws and regulations that affect labor relations. ?Describe how management and unions negotiate contracts. Summarize the practice of contract administration.

Even though accounting records go back hundreds of years, there was little effort to develop accounting standards until the 1900s. The first major effort to develop accounting standards in the United States came in 1939 when the American Institute of Certified Public Accountants formed the Committee on Accounting Procedures. As the number of standards increased, an issue called "standards overload" emerged. Essentially, the charge of "standards overload" is that there are too many accounting standards and that the standards are too complicated. Many individuals charging that standards overload is a problem maintain that more professional judgment should be allowed in financial accounting. Some individuals take a position that selected standards should not apply to nonpublic companies. Others take a position that "little" companies should be exempt from selected standards. There has been some selective exclusion from standards in the past. Examples of selective exclusion are the following: 1. Statement of Financial Accounting Standards No. 21, "Suspension of the Reporting of Earnings per Share and Segment Information by Nonpublic Enterprises." "Although the presentation of earnings per share and segment information is not required in the financial statements of nonpublic enterprises, any such information that is presented in the financial statements of nonpublic enterprises shall be consistent with the requirements of APB Opinion No. 15 and FASB Statement No. 14." 2. Statement of Financial Accounting Standards No. 33, "Financial Reporting and Changing Prices." This statement required supplemental reporting on the effects of price changes. Only large public companies were required to present this information on a supplementary basis. Required a. Financial statements should aid the user of the statements in making decisions. In your opinion, would the user of the statements be aided if there were a distinction between financial reporting standards for public vs. nonpublic companies? Between little and big companies? b. In your opinion, would CPAs favor a distinction between financial reporting standards for public vs. nonpublic companies? Discuss. c. In your opinion, would small business owner-managers favor a distinction between financial reporting standards for small and large companies? Discuss. d. In your opinion, would CPAs in a small CPA firm view standards overload as a bigger problem than CPAs in a large CPA firm? Discuss. e. Comment on standards overload, considering Statement of Financial Accounting Concepts No. 1, "Objectives of Financial Reporting by Business Enterprises." Particularly consider the following objective: Financial reporting should provide information useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. The information should be comprehensible to those having a reasonable understanding of business and economic activities and willing to study the information with reasonable diligence. Case 2-4 The FASB and the IASB have made progress towards convergence. The IFRS standards are considered to be more principles based than the U.S. rules-based GAAP. As of 2007, the IFRSs filled approximately 2,000 pages of accounting regulations.* When an IFRS or interpretation does not exist, then judgment must be used when applying an accounting policy. As of 2007, U.S. GAAP comprised over 2,000 separate pronouncements.â? Many of the U.S. pronouncements were dozens of pages, issued by numerous bodies.â?¡ Required a. "The IFRS standards are considered to be more principles based than the U.S. rules-based GAAP." Comment on the implications of this statement, including the legal implications. b. U.S. GAAP has been considered by many to be the best GAAP in the world. Should the United States give up its GAAP? Case RULES OR FEEL?

Case 1-1 Even though accounting records go back hundreds of years, there was little effort to develop accounting standards until the 1900s. The first major effort to develop accounting standards in the United States came in 1939 when the American Institute of Certified Public Accountants formed the Committee on Accounting Pro

The IFRS standards are considered to be more principles based than the US rules-based GAAP." Comment on the implications of this statement, including the legal implications. b. US GAAP has been considered by many to be the best GAAP in the world. Should the US give up its GAAP?

a. "The IFRS standards are considered to be more principles based than the US rules-based GAAP." Comment on the implications of this statement, including the legal implications. b. US GAAP has been considered by many to be the best GAAP in the world. Should the US give up its GAAP?

Contracts (Mail box rule)

Cantu was hired as a special education teacher by the San Benito Consolidated Independent School District under a one-year contract for the 1990-91 school year. On Saturday, August 18, 1990, shortly before the start of the school year, Cantu hand-delivered to her supervisor a letter of resignation, effective August 17, 1990. In

Labor Law: Using the Seven Tests

As you get coffee from the empty breakroom you see a document titled "Using the Seven Tests" laying on the table. Someone left it there. You pick it up, stick it in your binder and return to your office to look at the grievance form, the labor contract and this "Using the Seven Tests" article. You moan because the labor cont