Eric Johnson was recently promoted to Controller of Research and Development (R&D) for PharmaCor, a Fortune 500 pharmaceutical company, which manufactures prescription drugs and nutritional supplements. The company’s total R&D cost for 2012 was expected (budgeted) to be $5 billion. During the company’s mid-year budget review, Eric realized that current R&D expenditures were already at $3.5 billion, nearly 40% above the mid-year target. At this current rate of expenditure, the R&D division was on track to exceed its total year-end budget by $2 billion! In a meeting with CFO, James Clark, later that day, Johnson delivered the bad news. Clark was both shocked and outraged that the R&D spending had gotten out of control. Clark wasn’t any more understanding when Johnson revealed that the excess cost was entirely related to research and development of a new drug, Lyricon, which was expected to go to market next year. The new drug would result in large profits forPharma Cor, if the product could be approved by year-end.
Clark had already announced his expectations of third quarter earnings to Wall Street analysts. If the R&D expenditures weren’t reduced by the end of the third quarter, Clark was certain that the targets he had announced publicly would be missed and the company’s stock price would tumble. Clark instructed Johnson to make up the budget short-fall by the end of the third quarter using “whatever means necessary.” Johnson was new to the Controller’s position and wanted to make sure that Clark’s orders were followed.
Johnson came up with the following ideas for making the third quarter budgeted targets:
a. Stop all research and development efforts on the drug Lyricon until after year-end. This change would delay the drug going to market by at least six months. It is also possible that in the meantime a Pharma Cor competitor could make it to market with a similar drug.
b. Sell off rights to the drug, Markapro. The company had not planned on doing this because, under current market conditions, it would get less than fair value. It would, however, result in a onetime gain that could offset the budget short-fall. Of course, all future profits from Markapro would be lost.
c. Capitalize some of the company’s R&D expenditures reducing R&D expense on the income statement.This transaction would not be in accordance with GAAP, but Johnson thought it was justifiable, sincethe Lyricon drug was going to market early next year. Johnson would argue that capitalizing R & D costs this year and expensing them next year would better match revenues and expenses.
Required: 1. Referring to the “Standards of Ethical Behavior for Practitioners of Management Accounting which of the preceding items (a–c) are acceptable to use? Which are unacceptable?
2. What would you recommend Johnson do?

Superior Company has the following cost and expense data for the year ending December 31, 2017.

Instructions

A (a cash method taxpayer) is an equal partner in the ABCD partnership (an accrual method taxpayer) and has a $10,000 outside basis in her partnership interest. A owns depreciable personal property (fair market value -- $15,000; fair rental value -- $1,000 per year) which the partnership will use in its business. Before any of the transactions described below, the partnership has $10,000 of net income each year. What result in the following alternatives?

(a) A leases the property to the partnership for 3 years. The partnership will pay A $1,000 per year for 3 years for the use of the property.

(b) What result in (a), above, if the rental payments are made on January 31 of the year following accrual?

(c) A transfers the property to the partnership, which will use it for 3 years and transfer it back to A at the end of that period. The partnership makes a special allocation of its first $1,000 of net income to A. What result to A? What if, instead, the first $3,000 of the first year’s net income and no subsequent income in excess of her one-quarter share is allocated to A?

Case 8: When Alex was cutting down a tree, a person walking by was hit by the falling tree. The injured person sued Alex for $300,000. Alex’s homeowners’ insurance had $100,000 liability coverage. He also purchased a $1 million Personal Umbrella Liability insurance.

How much will be paid by Alex’s homeowners’ insurance and how much will be paid by his Umbrella insurance?

1) Use dimensional analysis to find a relationship between the force of the wind, F, on a car. You will also need the velocity, v, the surface area of the car, A and the density of air, p.
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2) Consider the problem of determining the terminal velocity of a raindrop falling from a motionless cloud. Determine a general model using dimensional analysis. Hint: You will need 5 parameters

Harrison Richmond at my 27 year old male is seen in the emergency room for a sprain back (coccyx)suffered as a result of falling off a horse he was riding in the local public park.
Principal Diagnosis:
What is the correct diagnosis code?

Principal External Cause Code:
What is the correct diagnosis code?

Second External Code:
What is the correct diagnosis code?

If a bank is characterized by a positive income gap and interest rates rise, what will happen? What will happen if the bank is characterized by a negative income gap and interest rates rise? How would your answer to these questions change if we assumed that interest rates were falling? How can banks insulate themselves from the threat posed by volatile interest rates on bank income?

(5)

Suppose two countries, A and B, currently have the same level of output per worker. Further assume they have the same depreciation rate and same level of productivity. However, output per worker is growing in country A and falling in country B. What can you say about each country’s rate of investment? Support your conclusion with an appropriate graph

1. What is the total magnification of the following objective lenses with the eyepiece?
   1. Medium: ________________
   2. Low: ___________________
   3. High: ___________________

2. Which adjustment knob should you use on the high power? _________________________

3. How do you prevent the slide from falling off the stage? ____________________________

__________________________________________________________________________

4. Which adjustment knob is used for bringing the specimen into focus? _________________

5.Which adjustment knob is used for sharpening the image of the specimen after it is focused?