In year 0, Javen’s Inc. sold machinery with a fair market value of $630,000 to Chris. The machinery, original basis was $433,920 and Javen’s accumulated depreciation on the machine, was $73,000, so its adjusted basis M Javen’s was $420,920. Chris paid Javen’s $63,000 immediately (in year 0) and provided a note to Javen’s indicating that Chris would pay Javen’s $94,500 a year for six years beginning in year 1.
a. What is the amount and character of the gain that Javen’s will recognize in year 07 b.? What amount and character of the gain will Java. recognize in years 1 through 67
Lassen Corporation sold a machine to a machine dealer for $27,000. Lassen bought the machine for $62,500 and has claimed $22,009 of depreciation expense on the machine.
What gain or loss does Lassen realize on the transaction?
Arron incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market values and tax bases:
QUESTION ONE: Absorption and Variable Costing: Prepare and Reconcile Variable costing Statements
Audio phonics Limited manufactures and sells high-quality and durable ear buds for use with personal electronics that are custom molded to each customer’s ear. Cost data for the product follows
What would you pay for a $220,000 debenture bond that matures in15 years and pays $11,000 a year in interest if you wanted to earn a yield of: 3%
1. Would you expect the risk premium for an investment in an Ethiopia stock to be the same as that for a stock from the Kenya? Discuss your reasoning.
2. Under what conditions will it be ideal to use one or several of the relative valuation ratios to evaluate a stock?
3. Discuss a scenario where it would be appropriate to use one of the present value of cash flow techniques for the valuation.
4. Discuss why the two valuation approaches (present value of cash flows and the relative valuation ratios) are competitive or complementary.
Sheffield Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budgeted direct labor hours totaled 80,000 hours and budgeted machine hours totaled 20,000 hours. At the end of the year, the actual overhead costs recorded totaled $450,000 and actual direct labor hours were 86,000. The Sherfield Company€™s production process is very labor-intensive and therefore uses direct labor hours as the activity base. With this information, what is the assigned (applied) amount of MOH that Sherfield Company assign to production?
please use this link
Read the linked article below and in a MS Word document, list the various penalties being used by the Office of Civil Rights for patient confidentiality violations by Massachusetts General Hospital. When you list each penalty describe it in detail, and what you think is involved in implementing it for the health care organization.
What are the results of these penalties expected to be?
For each requirement from the OCR, what would the ideal result or goal be as far as MGH is concerned?
Will these penalties help MGH prevent patient confidentiality breaches in the future?
What are the differences between the way OCR dealt with this HIPAA patient confidentiality breach then (2011) and now?
CalcSmart, Inc. is a manufacturer of handheld scientific calculators. The company controller resigned in June 2016, leaving an inexperienced assistant accountant to prepare the following income statement for the month of June 2016. Sales revenue $780,000 Less: operating expenses Raw materials purchases $264,000 Direct labor costs 190,000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000 Indirect labor cost 28,000 Utilities expense 12,000 Insurance expense 8,000 Total operating expense 803,000 Net loss ($23,000) Prior to June 2016 the company had been profitable every month. The company president, Cal Worthington, is concerned that the June financial statement may not reflect the true financial performance of the company. Your management team has been called in to review the accounting information and determine if the income statement accurately reflects the company’s performance for June. Page 2 of 2 Your team discovers the company had the following inventory levels at the beginning and end of June: Inventory Balances 6/1/16 6/30/16 Raw materials $15,000 $30,000 Work in process 25,000 20,000 Finished goods 30,000 50,000 Other accounting information available indicates that there should be an allocation of certain expenses between factory overhead and selling costs. Allocation of Costs Overhead Selling Utilities 75% 25% Insurance 60% 40% Instructions: · Based on the information provided above, prepare a schedule of the cost of goods manufactured and a traditional format income statement for the month of June. · Using the format provided with Case #1, prepare a memo to the president of the company. In the memo, describe any errors in the original financial statements and explain the impact of these errors on net income. · The schedule of cost of goods sold and income statement should be attached as appendices to the memo.
| 1. (TCO A) Wages paid to an assembly line worker in a factory are a (Points: 6) Prime Cost YES….Conversion Cost NO. Prime Cost YES….Conversion Cost YES. Prime Cost NO….Conversion Cost NO. Prime Cost NO…..Conversion Cost YES. |
| Question 2.2. (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be (Points: 6) direct costs. sunk costs. incremental costs. None of the above |
| Question 3.3. (TCO A) Depreciation of office buildings and office equipment are also known as (Points: 6) variable costs. conversion costs. product costs. period costs. |
| Question 4.4. (TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following? (Points: 6) Fixed costs per unit increase and variable costs per unit increase. Fixed costs per unit decrease and variable costs per unit do not change. Fixed costs per unit do not change and variable costs per unit do not change. Fixed costs per unit do not change and variable costs per unit increase. |
| Question 5.5. (TCO F) EMCOR Company uses direct labour cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company included in direct labour cost a portion of indirect labour. The effect of this misclassification will be to (Points: 6) understate the predetermined overhead rate. overstate the predetermined overhead rate. have no effect on the predetermined overhead rate. This cannot be determined from the information given. |
| Question 6.6. (TCO F) A job-order cost system is employed in those situations where (Points: 6) many different products, jobs, or batches of production are being produced each period. manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis. the product moves from department to department before being completed. the unit cost of production is computed by dividing the total production costs by the number of units produced. |
| Question 7.7. (TCO F) The FIFO method only provides a major advantage over the weighted-average method in that (Points: 6) the calculation of equivalent units is less complex under the FIFO method. the FIFO method treats units in the beginning inventory as if they were started and completed during the current period. the FIFO method provides measurements of work done during the current period. the weighted-average method ignores units in the beginning and ending work-in-process inventories. |
| Question 8.8. (TCO B) The contribution margin ratio always increases when the (Points: 6) break-even point increases. break-even point decreases. variable expenses as a percentage of net sales decrease. variable expenses as a percentage of net sales increase. |
| Question 9.9. (TCO B) Which of the following would not affect the break-even point? (Points: 6) Number of units sold Variable expense per unit Total fixed expenses Selling price per unit |
| Question 10.10. (TCO E) In an income statement prepared using the variable costing method, variable selling and administrative expenses would (Points: 6) be used in the computation of the contribution margin. be used in the computation of net operating income but not in the computation of the contribution margin. be treated differently from variable manufacturing expenses. not be used. |
What is the primary state compulsory disability laws and how do they affect an employee? (must be over 200 words and citation)
rom an inventory management perspective, which of the following statements are true?
A) Safety stock is stock that a company is saving and only uses to cover backorders.
B) Cycle Stock are the goods that a company has ordered but not yet received.
C) Pipeline inventory is the average amount of goods that a company maintains in stock.
D) Inventory Position is the total amount of goods that a company has its warehouse a certain moment in time
E) Inventory On Hand is the inventory the company keeps above the average cycle demand.
F) None of the above