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Grande Machinery Company purchased, for cash, a $60,000 custom machine on January 1, 2011. The machine has an estimated 5-year life and w ill be straight-line depreciated with no salvage value. The machine was then leased to Sunshine Engineering Company, an 80%-owned subsidiary, under a 5-year operating lease for $15,000 per year, payable each January.
Record the 2011 entries for the purchase of the machine and the lease on the books of Grande machinery and for Sunshine Engineering.
Neffer Services Inc. leases access to high-speed computers to small businesses. It provides the following information for the year.
In the United States, about one in every four companies uses variable costing for internal reporting purposes. These companies must make adjustments to these reports for external-reporting purposes. Explain.
The purpose of this assignment is to get a picture of the various roles managers play and the skills required to perform effectively in an accounting role.
A manufacturer is developing a new board game geared towards children. To be competitive with other board games, the company has set a target price of $25 for the game. The company likes to maintain a target profit equal to 35 percent of the produ..
It is anticipated the preferred stock will pay $6 per share in dividends. (a) Compute the cost of preferred stock for Burger Queen.
If the demand for 'catnip' increases: A. The supply of 'catnip' must have gone up B. The incomes of cat owners must have gone up.
What initial promotional plan directed to consumers in the target market did Callaway use? (b) Why did this make sense to Callaway and her team when Warm Delights was launched?
Why is the budget a far more important document in both governments and not-for-profits than in businesses?
What accounting standard provides the authoritative guidance for asset impairments? Briefly discuss the scope of the standard (i.e., explain the types of transaction to which the standard applies).
Julia Katchum is in charge of the Eastern Regional Counterterrorism Computer Forensics Unit. Her recent investigations led her to believe that an imminent threat of a terrorist act in the Chicago area exists.
Explain the concept of “business ethics”. Critically discuss the term “complex ethical dilemma”. Reviewing the real life situations mentioned in the document Complete Guide to Ethics Management:
Gift tax returns were filed reporting these gifts. How much of her estate is subject to federal estate tax after considering the estate tax exemption?
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