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Problem - Netbooks Inc. provides accounting applications for business customers on the Internet for a monthly subscription. Netbooks customers run their accounting system on the Internet; thus, the business data and accounting software reside on the servers of Netbooks Inc. The senior management of Netbooks believes that once a customer begins to use Netbooks, it is very difficult to cancel the service. That is, customers are "locked in" because it is difficult to move the business data from Netbooks to another accounting application even though the customers own their own data. Therefore, Netbooks has decided to entice customers with an initial low monthly price that is half the normal monthly rate for the first year of services. After a year, the price will be increased to the regular monthly rate. Netbooks management believes that customers will have to accept the full price because customers will be "locked in" after one year of use.
Required - Discuss whether the half-price offer is an ethical business practice.
Shrieves' corporate tax is rate is 35%, and 70% of the dividends received are tax exempt. Find the after-tax rates of return on all three securities
Bramble paid $2,455 interest on the bonds on July 1, 2017. Prepare an income statement for the year ending December 31, 2017
Assume that you are following a growth firm whose growth rate has begun easing. Which of the following would you most likely observe in terms of dividend policy at the firm?
Find the amount of interest and the amount applied to reduce the principal in this payment and the balance after this payment
XYZ Limited is a subsidiary of ABC Limited. Provide consolidation worksheet adjusting entries for each of the transactions listed above
1. Prepare closing entries as of August 31, 2015 (the perpetual inventory system is used).
List four areas of high inherent risk based on your findings in (a) above and explain how they could affect the financial statements of 2016
which of the following costs are included in the cost classification that is based on the time frame perspective?a.
Purchases of direct materials purchased in December were $50,000. Prepare a cash budget for January and February
s amp x co. is a retail store owned solely by paul turner. during the month of november the equity accounts were
How would your answer change if Mr. Young's sole proprietorship qualifies for the 20 percent Section 199A deduction
X-Beams Inc. owned 70% of the voting common stock of Kent Corp. What was the noncontrolling interest in Kent net income
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