• Q : What type of depreciation method....
    Accounting Basics :

    Which depreciation method does Amazon.com use for reporting in the financial statements? What type of depreciation method does the company probably use for income tax purposes? Why is this method p

  • Q : Billion of long-term debt without telling....
    Accounting Basics :

    General Electric Capital, a division of General Electric, uses long-term debt extensively. In early 2002, GE Capital issued $11 billion in long-term debt to investors, then within days filed legal d

  • Q : Explain contribution margin and contribution margin ratio....
    Accounting Basics :

    Compute its contribution margin and contribution margin ratio. 3. Interpret the contribution margin ratio from part 2.

  • Q : What is the ending goods in process inventory....
    Accounting Basics :

    The overhead allocation rate in Franz Company's job order cost accounting system applies overhead based on direct labor costs. The manufacturing costs for the current year were.

  • Q : Should kitchen rite outsource the chassis....
    Accounting Basics :

    Kitchen Rite is considering outsourcing the production of a steel chassis that is used in a kitchen appliance. Two thousand chassis are produced per month.

  • Q : Value of longt-term and periodic interest....
    Accounting Basics :

    Both the reported value of longt-term and periodic interest charges should be based on unamortized issue price (plus or minus unamortized premium discount) and initial yield.

  • Q : The club would rent portable tables....
    Accounting Basics :

    On June 1, 2009, National Equipment Rental leased equipment to the Glendale Community Club and Craig Legal Services. Glendale signed a lease indicating the club would rent portable tables for the mo

  • Q : How would you depreciate this asset....
    Accounting Basics :

    Assume that you are acquiring a $10 million computer system that has an economic life of approximately 3 years, a physical life of 6 years, and a technological life of 2 years.

  • Q : Determine expected net income and net cash flow year....
    Accounting Basics :

    Compute the net present value for this machine using a discount rate of 75% and assuming that cash flows occur at each year-end (hint: salvage value is a cash inflow at the end if the assets life. R

  • Q : The accounting firm reimburses roberta....
    Accounting Basics :

    Assume all of the same facts as in Part a., except that Roberta is self-employed. Identify which of the expenses are deductible, and indicate whether they are deductions for or from AGI.

  • Q : Compare the traditional gross profit....
    Accounting Basics :

    Compare the traditional gross profit (gross margin) concept in financial reporting to contribution margin in Cost-Volume-Profit analysi

  • Q : What is your estimate of the stocks current value....
    Accounting Basics :

    Agarwal Technologies was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend.

  • Q : The fmv of the gift property....
    Accounting Basics :

    During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV.

  • Q : What are the implications of the activity-based costing....
    Accounting Basics :

    Develop a new product cost, using an activity-based costing approach, for one pound of Jamaican coffee and one pound of Colombian coffee.

  • Q : Determine the amount of tracy long-term....
    Accounting Basics :

    Tracy owns a nondepreciable capital asset held for investment. The asset was purchased for $250,000 six years earlier and is now subject to a $75,000 liability.

  • Q : Bourne crafts manufactures specialty....
    Accounting Basics :

    Bourne Crafts manufactures specialty key chains for tourist attractions. On Dec 31, 2009, the firm had 200 souvenir attraction disks used in the production of the chains that cost $3 each.

  • Q : Compute the standard cost of one unit of product....
    Accounting Basics :

    Lovitz Company is planning to produce 2,500 units of product in 2008. Each unit requires 4 pounds of materials at $8 per pound and a half hour of labor at $17 per hour. The overhead rate is 70% of d

  • Q : Discuss the weighted average cost of capital....
    Accounting Basics :

    The financial statements of Lioi Steel Fabricators are shown below-both the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The weig

  • Q : Why a company may want to sell....
    Accounting Basics :

    An article recently appeared in the wall street journal indicating that companies are sell receivables at a record rate. Discuss the reasons why a company may want to sell its receivables and the a

  • Q : What amount would it report at the end....
    Accounting Basics :

    Georgia company borrowed 600,000 from a bank on may 1, 2007. the bank required a return of 12% on the loan. The loan is to be repaid over 12 months in equal installments. georgia companys fiscal yea

  • Q : Determine which of the segments are reportable based....
    Accounting Basics :

    Plastics Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013.

  • Q : The overhead account before adjusting....
    Accounting Basics :

    Simple plant manufactures DNA test strips. Manufacturing overhead is applied to unit produced using direct labor dollars at the allocation base. The overhead rate is calculated prior to the beginnin

  • Q : Why is one product line preferred over the other....
    Accounting Basics :

    Why is one product line preferred over the other, even though they both have the same total net cash flows through eight periods?

  • Q : What is the cost to manufacture the devise....
    Accounting Basics :

    I-Mobile Inc. is considering an investment in new equipment that will be used to manufacture a mobile communications device. The device is expected to generate additional annual sales of 2,100 units

  • Q : Why the amount was returned with the may bank statement....
    Accounting Basics :

    The comparison of deposits per the bank statement with those per the books revealed that another customer's check in the amount of $101.10 was correctly added to the company's account.

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