On October 15, 2017, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2018, 25 million stock options were granted, exercisable for 25 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2021, and December 31, 2023, at 90% of the quoted market price on January 1, 2018, which was $20. The fair value of the 25 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize forfeitures only when they occur.

Ten percent (2.5 million) of the options were forfeited when an executive resigned in 2019. All other options were exercised on July 12, 2022, when the stock’s price jumped unexpectedly to $24 per share.

Required:
1. When is Ensor’s stock option measurement date?
2. Determine the compensation expense for the stock option plan in 2018. (Ignore taxes.)
3. & 5. Prepare the necessary journal entries.

Question text

Forecasting and Estimating Share Value Using the DCF Model
Following are the income statement and balance sheet for Intel Corporation.

*This should be considered as operating income.

** These investments are operating assets as they relate to associated companies.

(a) Compute Intel's net operating assets (NOA) for year-end 2010.
2010 NOA = ?

(b) Compute net operating profit after tax (NOPAT) for 2010, assuming a federal and state statutory tax rate of 37%.

HINT: Gains/losses on equity method investments are considered operating income. Round your answer to the nearest whole number.
2010 NOPAT = ?

(c) Forecast Intel's sales, NOPAT, and NOA for years 2011 through 2014 using the following assumptions:

Forecast the terminal period value using the assumptions above and assuming a terminal period growth of: 1%.

* Use sales rounded to nearest whole number for this calculation.

(d) Estimate the value of a share of Intel common stock using the discounted cash flow (DCF) model as of December 25, 2010; assume a discount rate (WACC) of 11%, common shares outstanding of 5,511 million, and net nonoperating obligations (NNO) of $(21,178) million (NNO is negative which means that Intel has net nonoperating investments).

• Use your rounded answers for subsequent calculations.

• Do not use negative signs with any of your answers below.

Your client, a US multinational company, is planning to transfer intangible assets, including trade names and trademarks to a low tax offshore subsidiary. This subsidiary would charge royalties to the US and foreign subsidiaries for the use of the intangibles. The company also plans to ship products manufactured by its international subsidiary to various worldwide customers.

A) Briefly summarize the current transfer pricing implications and tax reporting considerations your client should consider for both transactions.

B) What other information would you request from your client?

Boomtown is preparing a cost analysis of three departments: Parks, Fire, and Water. To comply with accuracy standards in allocating indirect costs, Boomtown will employ the step-down method of cost allocation. There are two indirect cost groups that are allo-cated: city administration and facilities. Costs for facilities are allocated first, and then costs for city administration are allocated. Using the data in Table 5.5, prepare the cost allocation using direct cost as the base and determine the full cost of the departments.

Describe the characteristics of an effective management accounting report

Create a spreadsheet with 1. income statement. 2. balance sheet

Explain what would be the most effective policy for U.S. economy right now in 2019 (fiscal and monetary) and how it would be effective. Now, if the economy is in a recession, analyze the role of using fiscal and monetary policy to help stabilize the economy.

-           How is impairment testing handled?

-           How do we calculate book value?

-           How do we calculate the gain or loss on the sale of an asset?

-           What are some measures a business can take to establish stronger internal controls over cash receipts?

Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ? During March, the company purchased direct materials at a cost of $45,210, all of which were used in the production of 2,500 units of product. In addition, 4,100 direct labor-hours were worked on the product during the month. The cost of this labor time was $30,750. The following variances have been computed for the month: Materials quantity variance $ 3,600 U Labor spending variance $ 2,750 U Labor efficiency variance $ 700 U Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month’s production. c. Compute the standard hours allowed per unit of product.

Why is ABC usually considered more accurate than traditional costing methods?

Please answer the question below to the best of your knowledge.
For each of the taxpayers, enter the correct amount in the cell in the "Allowable deduction" column.  Enter a zero (0), if the taxpayer is not entitled to a year 2 medical expense deduction.  Enter all amounts as positive values.
                                                                             Taxpayer
 Allowable deduction
Taxpayer                           A
Medical costs reported in year 2 include the following:
·Prescriptions $ 450
Herbal weight loss supplements and vitamins recommended by physician $ 1,200
·Eye examination and eyeglasses $650
· Removal of appendix $2,800
 
 
 
Taxpayer                                 B
Medical costs reported in year 2 include the following:
·         Medical insurance premium paid from after the tax income 1,500
·         Tooth extraction $900
·         Surgery to remove facial wrinkles $3,500
·         Nonprescription drugs $200
·         Hearing aid $2,600 of year 3
·         Receive medical insurance reimbursements of $500 in year 2 and  $200 in January of year 3
 
 
 
Taxpayer                                             C
Medical costs reported in year 2 include the following:
·         Drug rehabilitation expense $4,400
·         Wheelchair purchase $ 800
·         Health club membership fee $700
·         Plastic surgery to correct injuries in an auto accident $7,500

AA purchased a van (cost: $50,000, salvage value: $5,000, useful life: 5 years).

1. Under straight-line method, how much is the book value at the end of 3^rd year of its useful life?

$18,000

$20,000

$23,000

$27,000

2. Under double-declining balance method, how much is the book value at the end of 5^thyear?

$2,333

$5,432

$6,221

None of the above

3. Under sum-of-years’ digits method, how much is the accumulated depreciation at the end of 3^rd year?

4. Under sum-of-years’ digits method, how much is the annual depreciation expense for 2^ndyear?

5. AA estimated the total usage of this van would be 100,000 miles. During the first year, this van was used for 30,000 miles. What is the amount of book value at the end of 1^st year?

As part of a renovation of its showroom, O'Keefe Auto Dealership sold furnitureand fixtures that were eight years old for $3,500 in cash. The assets had beenpurchased for $40,000 and had been depreciated using the straight-line methodwith no residual value and a useful life of ten years.

a. Prepare a journal entry to record this transaction.

b. Show how the sale of the furniture and fixtures affects the balance sheet andincome statement using the financial statement effects template.

HARDA Fashion sells ready-to-wear fashion clothes to teenagers. The company has a 20-store chain concentrated in the north-eastern part of the United States of America. Each store has the experienced full-time staff consist of a manager and an assistant manager. The full-time staff is paid a fixed salary. The full-time staff is assisted with a cashier and a sales assistant who have comparatively less experience. The cashier and sales assistant are paid hourly wages plus the commission based on the volume of sales. HARDA Fashion uses unsophisticated cash registered with four-parts sales invoice to record each financial transaction. These sales invoices for the sales transaction irrespective of the payment type. The record-keeping starts with the sales assistant on the sales floor. The sales assistant fills the sales invoices manually by providing the following information: 1. Records his or her employee number. 2. Enters the transaction details including clothes item number, description, quantity, and the unit price. 3. Totals the sales invoice. 4. Calculates the discounts manually when appropriate. 5. Calculates the sales tax. 6. Finalise the sales invoice after calculating the grand total. The sales assistant then forwards the sale invoice to the cashier and keeps one copy in the sales book. The cashier reviews this sales invoice and enters in the cash register. The cash register mechanically validates the invoice, automatically assigning a consecutive number to the transaction. The cashier is also responsible for getting credit approval on charge sales and approving sales paid by cheque. The cashier gives (1) one copy of the invoice to the customer, (2) retains the second copy as a store copy, and (3) the third for a bankcard, if a deposit is needed. Returns are handled in exactly the reverse manner, with the cashier issuing a return slip. At the end of each day, the cashier sequentially orders the sales invoices and takes cash register totals for cash, bankcard, cheque sales, and cash and credit card return. These totals are reconciled by the assistant manager to the cash register tapes, the total of the consecutively numbered sales invoices, and the return slips. The assistant manager prepares a daily reconciliation report for the store manager’s review. HI5019 TD2 2020 Assessment 1: Individual Assignment 3 The manager reviews cash, cheque, and credit card sales and then prepares the daily bank deposit (credit card sales invoices are included in the deposit). The manager makes the deposit at the bank and files the validated deposit slip. The cash register tapes, sales invoices, and return slips are forwarded daily to the central data processing department at corporate headquarters for processing. The data processing department returns a weekly sales and commission activity report to the manager for review. Required Prepare a report to Chief Executive Officer of HARDA Fashion to evaluate its processes, risks, and internal controls for its revenue cycle. In your report, you need to include the following items: 1. Identify six strengths in HARDA’s system for controlling sales transactions. 2. For each strength identified, explain what problem(s) HARDA Fashion has avoided by incorporating the strengths in the system for controlling sales transactions. 3. Identify two situational pressures in a company like HARDA Fashion that would increase the likelihood of fraud. 4. Explain why some companies would choose to install a distributed computer system rather than a centralised one.