•I am assigned a project from my CPA firm. I have to go into a new building and try to find as many pieces of furniture and fixtures from the building as I can. So for example, a door, a drop ceiling, a window, a drinking fountain. I will do this so I can use 7 year depreciation instead of 39 year depreciation. If I find $1,000,000 of things I can argue are fixtures instead of buildings, the client will give me and my CPA firm $50,000 cash bonus.

•I am worried that this might be a violation of ethics. Write a 1-2 page single spaced email to your supervisor about your concerns.

•Find one thing wrong about this in Circular 230, Statement on Tax Standards and AICPA Code of Professional Conduct. They must be different – not all contingent fees, for example. Quote and state the violation within each.

Assume you complete the tax return. Find one possible violation with Code Section 6694 or the related Treasury regulations

•I am assigned a project from my CPA firm. I have to go into a new building and try to find as many pieces of furniture and fixtures from the building as I can. So for example, a door, a drop ceiling, a window, a drinking fountain. I will do this so I can use 7 year depreciation instead of 39 year depreciation. If I find $1,000,000 of things I can argue are fixtures instead of buildings, the client will give me and my CPA firm $50,000 cash bonus.

•I am worried that this might be a violation of ethics. Write a 1-2 page single spaced email to your supervisor about your concerns.

•Find one thing wrong about this in Circular 230, Statement on Tax Standards and AICPA Code of Professional Conduct. They must be different – not all contingent fees, for example. Quote and state the violation within each.

Assume you complete the tax return. Find one possible violation with Code Section 6694 or the related Treasury regulations

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $169,007 in overhead.

The company has identified the following information about its overhead activity cost pools and the two product lines:

Required:
1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)



2. Calculate the activity rates for each cost pool in Hazelnut’s ABC system.



3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system.



4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system.



5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate?

Required information

[The following information applies to the questions displayed below.]

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 82,000 were in process in the production department at the beginning of April and 328,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 104,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion.

The production department had $1,512,630 of direct materials and $991,230 of conversion costs charged to it during April. Also, its beginning inventory of $242,340 consists of $206,850 of direct materials cost and $35,490 of conversion costs.

1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output.

1. A new operating system for an existing machine is expected to cost $680,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,000.
2. A machine costs $530,000, has a $24,200 salvage value, is expected to last eight years, and will generate an after-tax income of $76,000 per year after straight-line depreciation.

Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

A new operating system for an existing machine is expected to cost $680,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,000. (Round your answers to the nearest whole dollar.)

A machine costs $530,000, has a $24,200 salvage value, is expected to last eight years, and will generate an after-tax income of $76,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $31 per job, and the actual mobile lab operating expenses for February were $8,880. The company expected to work 140 jobs in February, but actually worked 144 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate governments). Presented below is the preclosing trial balance for the investment trust fund, a private-purpose trust fund.

  
Investment earnings are distributed among the School District and Town in proportion to the amounts contributed (two-thirds to the School District and one-third to the Town).

Required:
Prepare the year-end closing entries and a Statement of Changes in Fiduciary Net Position for the year ended December 31, 2017.

LJE Ltd undertakes jobs for its clients who are billed when the jobs are completed.

Additional information about the three jobs are as follows:

1. Direct material is introduced into jobs at the start of the jobs. Thus, material for Job 101 was introduced in May 2019, for jobs 102 and 103 direct material was introduced in June 2019
2. Material are bought in the month in which they are required and issued to jobs directly. Materials purchased in June 2019 cost K23,000. (See table above for more insights about jobs 102 and 103).
3. Direct labour at 31 May 2019 and 30 June 2019 was just half of the total labour cost in the respective jobs
4. The labour cost incurred in June was K160,000 (Note the direct labour for May and July 2019 for jobs 101 and 103)
5. Overhead is absorbed into jobs on the basis of direct labour cost at the rate ofK0.5 per Kwacha in all the months
6. Jobs 101 (cost K154,000) and Job 102 were completed in June 2019. The cost of these completed jobs constituted cost of goods sold in June 2019 for LJE Ltd. Job 103 was still in progress at the end of July 2019.
7. The overheads incurred in June 2019 were K95,000

Required

For Job 101 calculate:

1. The direct labour cost incurred in June 2019 and the total direct labour cost on the whole job.

2. The overhead cost absorbed into the job on its completion in June 2019

For Job 102 calculate:

1. The direct material cost

2. The direct labour cost

3. The overhead absorbed into the job

For job 103 Calculate the overhead cost absorbed into the job in July 2019 and the cost of work in progress as at 31July 2019

Monkey Business, an import business, builds special-order yachts. They decide to build one for a customer for at a cost $2,500,000. It will take 2 years (they start building in June 1, 2007) to build with total costs of $1,900,000: costs of $320,000 in 2007; $1,200,000 in 2008; and the remainder in 2009 (assume they stick to budget). The customer puts a deposit down of $500,000 and pays the remainder in 4 installments, each due every 6 months. For each year (2007, 2008, and 2009) compute the revenue expense, and gross profits reported for this construction project. Assume they do not have a written contract but based on this customer having purchased several yachts in the past, they believe he will pay for the boat in a timely manner. Show all your work.

SAS Computers owns a patent on a computer processor. The processor was developed and capitalized at a cost of €2,100,000 in the beginning of 2015. It was expected to be economically useful for 7 years and have no residual value. At the beginning of 2018, a new processor was developed, making the old processor worth €900,000 (independent appraiser) with €200,000 total cost to sell. The present value of the processor’s future cash flows, given the development of the newer processor, is estimated to be €870,000. At this point, it is expected to have a useful life of 4 years with no residual value. Is the processor impaired in 2018? If it is impaired, prepare the to record the loss. Also prepare the journal entry for amortization in 2018. Show your work.

discuss issues relating to ethical considerations for budgetary forecasting and projections. Expand your answer to explain measures of how you would give strength to your budgetary assumptions and provide reliable forecasts

A government is the recipient of a bequest of a multi-story office building that the government intends to use as a new city hall. The building has a historical cost of $850,000; a book value in the hands of the benefactor of $700,000; and a fair value of $1,050,000. The city should recognize on its governmental fund financial statements donations revenue of

1. $-0-.
2. $700,000.
3. $850,000.
4. $1,050,000

Explanation to the answer please

Explain how the evidence developed and collected by the internal auditor.

Explain the use of audit sampling methods that work for internal auditor within an organization.

Which of the following statement is true in regards to accounting?

Required information

Problem 17-2A Ratios, common-size statements, and trend percents LO P1, P2, P3

[The following information applies to the questions displayed below.]

Selected comparative financial statements of Korbin Company follow:

1. Complete the below table to calculate each year's current ratio.

2. Complete the below table to calculate income statement data in common-size percents. (Round your percentage answers to 2 decimal places.)

3. Complete the below table to calculate the balance sheet data in trend percents with 2015 as the base year. (Round your percentage answers to 2 decimal places.)