In 1993, Novak Company completed the construction of a building at a cost of $2,500,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $76,000 at the end of that time.

Early in 2004, an addition to the building was constructed at a cost of $625,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $25,000.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

(a)

Correct answer iconYour answer is correct.

Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.

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(b)

• Your Answer
• Correct Answer

Compute the annual depreciation that would have been charged from 2004 through 2022.

(c)

Correct answer iconYour answer is correct.

Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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(d)

Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)

?

When should each of the following companies recognize revenue for the following operations? Identify potential revenue recognition issues or risk exposures facing the company:

PLEASE ANSWER THE FOLLOWING QUESTIONS

a. Costco Wholesale Corporation collects annual membership fees from customers.

b. The New York Times receives advertising revenues in advance from Citigroup, for an ad campaign that will run a full-page spread once a week for six months.

c. Zappos is an online clothing and shoe retailer. It receives credit card payments when customers place their orders and ships products from warehouses within 5-7 business days.

d. Ticketmaster contracts with the producer of Blue Man Group to sell tickets online. Ticketmaster charges each customer a fee of $7 per ticket and receives $12 per ticket from the producer. Ticketmaster does not take control of the ticket inventory. Average ticket price for the event is $99.

When should each of the following companies recognize revenue for the following operations? Identify potential revenue recognition issues or risk exposures facing the company: a. Costco Wholesale Corporation collects annual membership fees from customers. b. The New York Times receives advertising revenues in advance from Citigroup, for an ad campaign that will run a full-page spread once a week for six months. c. Zappos is an online clothing and shoe retailer. It receives credit card payments when customers place their orders and ships products from warehouses within 5-7 business days. d. Ticketmaster contracts with the producer of Blue Man Group to sell tickets online. Ticketmaster charges each customer a fee of $7 per ticket and receives $12 per ticket from the producer. Ticketmaster does not take control of the ticket inventory. Average ticket price for the event is $99.

Mini-Quiz

1, The efforts to revive the economy in 2009 through 2011 were drawn from?

(A)new tools of monetary policy. (B)the traditional tools of monetary policy. (C)all of the options are correct. (D)discretionary fiscal policy.

2, The elements of the stimulus package adopted in 2009 that allowed states to continue to make their unemployment compensation payments, despite having exhausted their funds, should be considered

(A)non-discretionary fiscal policy. (B)neither discretionary nor nondiscretionary fiscal policy programs. (C)discretionary fiscal policy. (D)monetary policy.

3, Monetary policy designed to counteract a reduction in aggregate demand might include

(A)a reduction in short-term interest rates. (B)a reduction in the money stock. (C)increased government infrastructure spending. (D)an increase in individual income tax rates.

4, The recession of 2007-2009 started

(A)with the financial collapse. (B)rather mildly in late 2007. (C)abruptly in 2007 with higher gasoline prices. (D)in 2006.

5, In the years immediately prior to 2005 in the U.S.,

(A)home prices were constant. (B)bankers were confident that home prices would decrease in 2005. (C)home prices were rising briskly. (D)home prices were falling precipitously.

6, A person using a discount rate, or 0%, is going to consider the concept of sustainability

(A)just a fancy term oil and gas companies use to argue for increased rights to drill. (B)as overly weighting the future. (C)as unwisely focusing on the present. (D)as wise.

7, The fish in the ocean would be considered a

(A)sustainable natural resource. (B)renewable natural resource. (C)limited natural resource. (D)sequestered natural resources.

8, Which issue type of environmental problem is least-easily solved?

(A)One that is entirely confined to a single community. (B)One that is entirely confined to a single property owned by an individual. (C)One that is global. (D)One that is entirely confined to a single country.

I marked the correct answers to these questions, but I just want to know how to solve them.

1) In a cross of AaBbCcDdEeFf X AaBbccDdEeFf, what proportion will have the ABCDeF phenotype?

A. 27/64

B. 27/128

C. 27/512

D. 81/512

E. 81/2048 ####

2.) In a cross of two flies +/vg Cy/+ +/se +/ab X +/vg +/+ se/se ab/ab what proportion of the offspring will be mutant in phenotype for all four markers?

A. 0

B. 3/64

C. 1/16

D. 1/32 ####

E. 1/64

3) A cross of two heterozygous individuals produces 74 dominants and 26 recessives. What is the chi-square value for these results?

A. 8/25

B. 16/75

C. 4/75 ####

D. 8/75

E. 12/25

4) Shell orientation in snails is due to a maternal effect gene. A true breeding sinistral (recessive) is crossed to a true breeding Dextral (dominant). The offspring from that cross are self-crossed. What will be the expected ratio of shell types?

A. All sinistral

B. All Dextral ####

C. Half sinistral, half Dextral

D. ¾ Dextral, ¼ sinistral

E. ¾ sinistral, ¼ Dextral

19) In peas, axial (A) flower position is dominant to terminal (a), tall (L) is dominant to short (l), and yellow (Y) is dominant to green (y). If a plant that is heterozygous for all three traits is allowed to self-fertilize, how many of the offspring would be dominant for all three traits?

A) 3/64

B) 9/64

C) 27/64 ####

D) 32/64

E) 64/64

20) The product H substance is needed to express the blood antigen. A mating of IA I B Hh X IA I B hh should produce what ratio of blood types?

a) 1/4 AB, 1/8 A, 1/8 B, 1/2 O ####

b) 3/8 AB, 3/16 A, 3/16 B, 1/4 O

c) 1/4 AB, 3/16 A, 3/16 B, 3/8 O

d) 3/16 AB, 3/8 A, 3/16 B, 1/4 O

e) 1/8 AB, 1/4 A, 1/8 B, 1/2 O

READ AND SUMMARIZE THE FINDINGS ABOUT THE DIFFERENCES OF IFRS AMONG COUNTRIES:

We present an index that can be used to distinguish between countries according to their institutional setting for the audit of financial statements and the enforcement of

compliance with accounting standards. The pursuit of comparable financial reporting and adoption of IFRS has highlighted differences in institutional setting between

countries that may influence the quality of IFRS reporting (Ball, 2006; Brown, 2011). The role of audit and accounting enforcement is arguably crucial to the application

of IFRS. The IFRS Foundation’s staff has supported calls by the World Bank for an international infrastructure to support the application of IFRS, emphasising that accounting quality is not a function of accounting standards alone (Hegarty et al., 2004;IASB, 2012). With the development of cross-country IFRS studies, researchers need

effective proxies to control for differences between countries in their institutional setting.

Our index represents a first attempt at ranking countries specifically on factors affecting the strength of audit and the level of enforcement activities relating to We present an index that can be used to distinguish between countries according to their institutional setting for the audit of financial statements and the enforcement of compliance with accounting standards. The pursuit of comparable financial reporting and adoption of IFRS has highlighted differences in institutional setting between countries that may influence the quality of IFRS reporting (Ball, 2006; Brown, 2011).

The role of audit and accounting enforcement is arguably crucial to the application of IFRS. The IFRS Foundation’s staff has supported calls by the World Bank for an

international infrastructure to support the application of IFRS, emphasising that accounting quality is not a function of accounting standards alone (Hegarty et al., 2004;IASB, 2012). With the development of cross-country IFRS studies, researchers need effective proxies to control for differences between countries in their institutional setting.

Our index represents a first attempt at ranking countries specifically on factors affecting the strength of audit and the level of enforcement activities relating to 16 has double the enforcement activity of a country scoring 8, although that is the literal interpretation of the numbers. Our aim is to provide a ranking of countries on enforcement in 3 years, using the index numbers to do so. At best, we can show how countries are positioned relative to their peers and how their position has changed over the study period. Nevertheless, our index improves on other indices by capturing, directly, differences between countries in their audit environments and enforcement of financial reporting requirements during a watershed period. Preliminary analysis supports this view.

There are many research opportunities to employ the index we present. For example, studies continue to address important questions about the consequences of adopting IFRS, often by considering the effect of the change of standards on the quality of financial statements or capital market outcomes. As another example, our index should be useful when the design of a study requires a measure of differences in the likelihood a country is monitoring compliance with accounting standards,including IFRS, and taking action on cases of non-compliance

1. Estimate the unlevered equity beta for Southwest Airlines. You may assume a 38% tax rate in your calculations.

2. Based on your estimate of Southwest Airlines’ unlevered equity beta, relever the beta to get an estimate of the firm’s levered beta.

3. The airline industry was obviously in a very unique position at the end of 2006. Are there any special concerns that you have regarding the estimation of the cost of equity for Southwest Airlines using the procedure described here?

1. Estimate the unlevered equity beta for Southwest Airlines. You may assume a 38% tax rate in your calculations.

2. Based on your estimate of Southwest Airlines’ unlevered equity beta, relever the beta to get an estimate of the firm’s levered beta.

3. The airline industry was obviously in a very unique position at the end of 2006. Are there any special concerns that you have regarding the estimation of the cost of equity for Southwest Airlines using the procedure described here?

1. Estimate the unlevered equity beta for Southwest Airlines. You may assume a 38% tax rate in your calculations.

2. Based on your estimate of Southwest Airlines’ unlevered equity beta, relever the beta to get an estimate of the firm’s levered beta.

3. The airline industry was obviously in a very unique position at the end of 2006. Are there any special concerns that you have regarding the estimation of the cost of equity for Southwest Airlines using the procedure described here?