Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Clean Air Anti-Pollution Company is suffering declining sales of its principal product, nonbiodegradable plastic cartons. The president, Dixon Nuber, instructs his controller, Gavin Wood, to lengthen asset lives to reduce depreciation expense. A processing line of automated plastic extruding equipment, purchased for $3.5 million in January 2011, was originally estimated to have a useful life of 8 years and a salvage value of $400,000. Depreciation has been recorded for 2 years on that basis. Dixon wants the estimated life changed to 12 years total and the straight-line method continued. Gavin is hesitant to make the change, believing it is unethical to increase net income in this manner. Dixon says, "Hey, the life is only an estimate, and I"ve heard that our competition uses a 12-year life on their production equipment."
Instructions
(a) Who are the stakeholders in this situation?
(b) Is the proposed change in asset life unethical, or is it simply a good business practice by an astute president?
(c) What is the effect of Dixon"s proposed change on income before taxes in the year of change?
question the comparative condensed income statements of marks corporation are given below.marks corporationcomparative
Determine the cost of the finished goods inventory of light-gauge aluminum and prepare an income statement for the current year ended December 31
humes corporation makes a range of products. the companys predetermined overhead rate is 16 per direct labor-hour which
Calculating NPV. For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 25%?
q ron williams currently took over as the controller of johnson brothers manufacturing. last month the last controller
Given the currency scenario described above, what is the expected value of annual after-tax dollar cash flows assuming no repatriation of profits to the United States?
The agreement also provide that if an audit adjustment is made to items reported on the schedule K-1, Bushong can make a discretionary distribution to handle the increased taxes resulting from the adjustment.
qthe major impact of third industrial revolution in agricultural equipment manufacturing value chain in the upcoming
Determine the provided expressions using the a, b, and c from your birth date.
Prepare the journal entries to record the transactions in July using normal costing, Calculate the over applied or under applied overhead for July. Utilize the proration method to prepare a journal entry to close this balance, Prepare a schedule of ..
Describe the objectives, standards of comparison, sources of information, and compensation issues in measuring financial performance and apply horizontal analysis, trend analysis, vertical analysis, and ratio analysis to financial statements.
On January 1, 2007, Didde Co. leased a building to Ellis Corp. for a ten-year term at an annual rental of $80,000. At inception of the lease, Didde received $320,000 covering the first two years' rent of $160,000 and a security deposit of $160..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd