Jackie Jaguar had a fur coat that cost $12,000 when purchased in 1999 and that was worth $14,000 when it was stolen on April 15, 2009. Her television, which cost $800 in 2004 and was worth $600, was also stolen. She received $10,000 from her insurance company for the theft of the two items. On July 20, 2009, her summer cottage with a basis of […]
Amortization of prior service cost using years-of-service method.On January 1, 2010, Krupka LLC amended its pension plan which caused an increase of $6,000,000 in its projected benefit obligation. The company has 400 employees who are expected to receive benefits under the company’s defined-benefit pension plan. The personnel department provided the following information regarding expected employee retirements:Expected RetirementsNumber of Employees On December 3140 2010120 201160 2012160 […]
None of the Simpsons is feeling very motivated. For each of the following scenarios, indicate whether the motivation problem concerns low expectancy, low instrumentality, or low valence, and briefly explain your choice. Expectancy: Does the person perceive that if he exerts effort, he will be able to perform the work successfully? Instrumentality: Does the person perceive that outcomes are likely to be obtained if she […]
A company owes £300 tax at 1.7.X4 and £450 at 30.6.X5. Its income statement for the year to 30.6.X5 includes a tax charge of £400. How much tax was actually paid in the year to 30.6.X5? An organisation buys a tangible non-current asset for £200,000. It has an estimated scrap value of £20,000 and an expected useful economic life of 10 years. Using straight line […]
Discussion 1 You work on a team of four budget analysts responsible for preparing the organization’s budget. The budget is prepared at the same time each year and involves gathering and compiling input from several departments. The job usually takes four months to complete. One month before the final budget presentation is due, two of your team members quit, and your manager designates you as […]
Parish plumbing provides plumbing services to residential customers from Monday through Friday. Ken Parrish, the owner, believes that it is important for his employees to have Saturday and Sunday off to spend with their families. However, he also recognizes that his policy has implications for profitability, and he is considering staying open on Saturday.Ken estimates that if his company stays open on Saturday, it can […]
Datt had worked for McAdams restaurant for 23 years (taking orders, cleaning) when in 2007 she came down with a skin condition on her hands that was made worse by frequent hand washing. She took several short-term disability leaves but her condition always worsened after she returned to work. McAdams said that frequent hand washing was necessary to maintain acceptable sanitary conditions, to meet both […]
Based on the corporate valuation model, the value of company’s operations is $1,200 million. The company’s balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $300 million in long-term debt, $50 million in preferred stock, […]
E15-13 (Stock Split and Stock Dividend) The common stock of Alexander Hamilton Inc. is currentlyselling at $120 per share. The directors wish to reduce the share price and increase share volume prior toa new issue. The per share par value is $10; book value is $70 per share. Nine million shares are issuedand outstanding.InstructionsPrepare the necessary journal entries assuming the following.(a) The board votes a […]
On Monday, Harvey Leonard travels from Chicago to New York on a business trip. The trip lasts five days. Three days of the trip are spent conducting business activities and two days spent on personal sightseeing activities. Harvey incurs $550 in airfare costs in going to and returning from New York, $50 a day in expenses for meals, and $100 a day for lodging while […]
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