• Q : Whether business expense is deductible....
    Accounting Basics :

    In the determination of whether a business expense is deductible, the reasonableness requirement applies only to salaries. Evaluate this statement.

  • Q : Payback period-discounted payback period-net present value....
    Accounting Basics :

    Explain what is meant by each of the following techniques-and the advantages/ disadvantage of one of the following: Payback Period Discounted Payback Period Net Present Value

  • Q : Company issuing a bond at discount....
    Accounting Basics :

    When a company issues a bond at discount: a. the company will pay less than the face amount of the bond at its maturity. b. the company will pay more than the face amount of the bond at its maturity.

  • Q : Compute the firm activity overhead rates....
    Accounting Basics :

    Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate.

  • Q : Financial statement data to compute cost of goods sold....
    Accounting Basics :

    If a company uses FIFO, can you use financial statement data to compute what its cost of goods sold would be using LIFO? Explain.

  • Q : Treated under the federal tax law....
    Accounting Basics :

    Explain how a sale would be generally treated under the federal tax law for each item listed above.

  • Q : Planning to purchase the property....
    Accounting Basics :

    Cedar Hill Hospital needs to expand its facilities. They are planning to purchase the property, erect a building, and install fixtures at a total cost of $600,000 to be paid in five installments to

  • Q : What is gomez value of equity....
    Accounting Basics :

    Gomez computer systems has EBIT of $200,000, a growth rate of 6 percent, and faces a tax rate of 40 percent. In order to support growth, Gomez must reinvest 20 percent of its EBIT in net operating a

  • Q : Issuance of no-par common stock and preferred stock....
    Accounting Basics :

    1. Prepare the journal entry to record Gaylord Company's issuance of 52,000 shares of no-par value common stock assuming the shares:

  • Q : Issuance of no-par common stock and preferred stock....
    Accounting Basics :

    1. Prepare the journal entry to record Gaylord Company's issuance of 52,000 shares of no-par value common stock assuming the shares:

  • Q : Forecasted cash receipts and forecasted cash payments....
    Accounting Basics :

    Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.

  • Q : Treat the payment on return....
    Accounting Basics :

    The agreement made no explicit allocation of any of the $600,000 to clyde's agreement not to compete against Red. How should clyde treat the $600,000 payment on his 2012 tax return.

  • Q : Default risk premium on the corporate bond....
    Accounting Basics :

    A Treasury bond that matures in 10 years has a yield of 6%. A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.5%. What is the default risk prem

  • Q : Determinant of interest rates....
    Accounting Basics :

    The real risk-free rate of interest is 4%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasur

  • Q : Bonds and warrants for the cash consideration....
    Accounting Basics :

    Prepare the journal entry (or entries) for the issuance of the bonds and warrants for the cash consideration received.

  • Q : Prepare the journal entry or entries....
    Accounting Basics :

    Prepare the journal entry (or entries) for the issuance of the bonds and warrants for the cash consideration received.

  • Q : Variable cost or a fixed cost basics....
    Accounting Basics :

    Are sweeteners and packaging a variable cost or a fixed cost? What is the impact on the contribution margin of an increase in the per unit cost of sweeteners or packaging? What are the implications

  • Q : Auditor approach in verifying sales returns and allowances....
    Accounting Basics :

    What is the difference between the auditor's approach in verifying sales returns and allowances and sales? Why is there a difference?

  • Q : Discuss the collegial responsibilities of cpa firms....
    Accounting Basics :

    Does the AICPA Code of Professional Conduct discuss the collegial responsibilities of CPA firms?In your opinion,were representatives of either Ernst & Young or Kenneth Leventhal &Company un

  • Q : Pros and cons related to an exclusion....
    Accounting Basics :

    Evaluate the pros and cons related to an exclusion of a $250,000 gain for a primary residence and how using this residence as rental property could impact the gain or loss determination for the home

  • Q : Relevant for setting a minimum selling price....
    Accounting Basics :

    Due to the blemishes, it will be impossible to sell these units at the normal price. If the company wishes to sell them through regular distribution channels, what unit cost figure is relevant for s

  • Q : Problem on amount of capitalized interest....
    Accounting Basics :

    Brick's incremental borrowing rate was 12% throughout the construction period and the total amount of interest incurred by Brick during 2011 and 2012 was $200,000 and $210,000 respectively. What amo

  • Q : Compute the contribution margin per person....
    Accounting Basics :

    Suppose the sorority encouraged its members to drive to the hotel and did not charter the buses. Further, a planned menu change will reduce the cost per meal by $2. If each member will still be char

  • Q : Average cost of repairs under warranty....
    Accounting Basics :

    Sam Myers sells televisions with a 2-year warranty. Past experience indicates that 2% of the units sold will be returned during the warranty period for repairs. The average cost of repairs under war

  • Q : Unethical practices and behavior in accounting....
    Accounting Basics :

    Write a 350- to 700-word article analysis in which you identify situations that might lead to unethical practices and behavior in accounting.

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