Reference no: EM132772490
Question - Answer the questions below clearly and succinctly using complete sentences. You may use bullet points. In your answers, you do not need to repeat the question, just put the number of the question and your response. You do not need to use numbers, but you may if that helps illustrate your point.
In November of 2020, the Paper Division of Dunder Mifflin Inc. purchased a piece of property in Scranton, Pennsylvania for $475,000. Other fees associated with the purchase, including closing costs and realtor commissions, totaled $25,000. The property contains land, a warehouse, and equipment. The Vice President of the Paper Division, Andy Bernard, and the Chief Financial Officer of Dunder Mifflin, Oscar Martinez, are discussing how the cost of the property should be allocated to the items purchased. The VP of the Paper Division, Andy Bernard, wants to allocate most of the cost to the land (80% to land and 20% to equipment and warehouse), while the CFO argues that they should allocate the bulk of the purchase cost to the equipment and warehouse (80% equipment & warehouse, 20% land) because "no one wants property in Scranton." The same depreciation methods are used for financial reporting and tax purposes, and assume tax rates won't change over the foreseeable future.
Andy Bernard is hoping to be promoted to the VP of the Printer Division, which is a much larger division than the Paper Division. A key determinant of whether Bernard will be promoted is the profitability of the Paper Division over the next two years. How should the purchase costs be allocated to the assets?
|
Six sigma approach to process improvement
: How is Six Sigma approach to process improvement different than other process improvement approaches?
|
|
What factors would consider in making the decision
: Consider the principle of justice, how would this change your decision? What factors would you consider in making this decision?
|
|
Explain the impact on the expenditure cycle
: The costs of the business, therefore, need to be low and the CEO would like to become a "cost leader" in the market. Explain the impact on the expenditure cycle
|
|
What are the cultural traits with charity
: You are a nurse working in a labor and delivery unit in a small town near a Native American reservation. Charity, your patient, is about to give birth.
|
|
How should the purchase costs be allocated to the assets
: Andy Bernard is hoping to be promoted to the VP of the Printer Division, How should the purchase costs be allocated to the assets
|
|
The opportunity cost means you have to leave every line
: The opportunity cost means you have to leave every line to buy what you need, just like other products or businesses.
|
|
What the cashier correct cash accountability at december
: What the Cashier's correct cash accountability at December 31, 2017 was? In your year-end audit of KK Day Corporation, the cashier showed a cash accountability
|
|
How will these payments be dealt with in Shannon
: To the end of 2020, Shannon's payments total only $9,500. How will these payments be dealt with in Shannon and Leon's 2020 tax returns
|
|
Determine the cost of inventory on hand at december
: Determine the cost of inventory on hand at December 31 and the cost of goods sold for march under a. FIFO, b. Average-Cost.
|