Research the Toshiba accounting scandal article in the University Library or from another credible source.
Summarize the article in 500 to 800 words.
Describe any measures you believe could have been used to avoid the problems presented in
the article.
In: Accounting
A study done by researchers at a university concluded that 90% of all student athletes in a country have been subjected to some form of hazing. The study is based on responses from 1700 athletes. What is the margin of error and the 95% confidence interval for the study?
In: Statistics and Probability
Research the Toshiba accounting scandal article in the University Library or from another credible source.
Summarize the article in 500 to 800 words.
Describe any measures you believe could have been used to avoid the problems presented in
the article.
In: Economics
John Smith received a scholarship from university of Houston-Down town for $20,000. He used the scholarship for:
Tuition 12,000
Computer 1,000
Books and Supplies 3,000
Meals and lodging 4,000
Determine the effect of the scholarship on John Smith Income
In: Accounting
taxed as a partnership and has four shareholders each owning 25% of the outstanding Interests (Shares). The shareholders’ outside basis in their respective Interests is $1.00
On February 20, 2018, POM LLCBLG is a limited liability Company, a single member limited liability company, sold its 25% in BLG Interests to ODY LLC, a limited liability company taxed as a Partnership, for $700,000 payable $100,000 cash at closing and a Promissory Note in the amount of $600,000 bearing interest at 5% with monthly principal payments of $10,000 plus monthly interest payments for sixty months. ODY LLC’s Managing Member personally guaranteed the Promissory Note
On February 20, 2019 by mutual agreement between the parties, the Promissory Note was renegotiated and the payment of principal on the Promissory Note, which had been reduced by principal payments of $120,000, was extended two years, principal payments were modified to $8,000 per month and the interest rate was raised to 7% annually on the outstanding balance of $480,000.
In December of 2019, ODY LLC received a notice of default from POM LLC. Subsequently, ODY LLC, to avoid filing for bankruptcy, negotiated a restructuring of the Promissory Note.
On February 20, 2020 with the remaining principal balance of the Promissory Note reduced to $440,000 plus accrued and unpaid interest of $18,000, the parties further agreed to restructure the Promissory Note reducing the principal and accrued interest due to $270,000 with payment terms of $5,000 per month without interest.
Assume that the Managing Member of ODY LLC had a net worth of $100,000 at all times prior to any cancellation of indebtedness in 2020 exclusive of his interest in ODY LLC which had had a zero net worth.
Question: identify all the tax issues associated with these facts faced by POM LLC and ODY LLC and their respective Members in each of the following tax years: 2018, 2019 and 2020. Consider taxable gains and losses, investment interest deductions and any imputed interest income or deductions to the parties stemming from imputed interest.
In: Accounting
Nano Circuits Inc, is a publicly traded company that produces electronic control circuits, which are used in many products. In an effort to comply with SOX, Nano is in the process of establishing an in-house internal audit function, which previously had been outsourced. The company began this process by hiring a Director of Internal Audits. Nano Circuits’ CEO recently called a planning meeting to discuss the roles of key corporate participants regarding the implementation and maintenance of internal controls. Central to this decision is the organizational placement of the future internal audit function and to whom the new Director of Internal Audit should report. In addition, Nano Circuits considered the need to reconstitute its Board of Directors Audit Committee. Participants at the meeting included the company president, the chief financial officer, a member of the audit committee, a partner from Nano Circuits external audit firm, and the Director of Internal Audits. Expectations and concerns presented by the meeting participants are summarized below.
CEO: The CEO expressed concern that Nano Circuits complies with SOX and PCAOB requirements and recommendations. The internal audit function should strengthen the organization’s internal control system by developing control policies and procedures and by detecting violations of policies and procedures.
CFO: The CFO saw the role of the internal audit function as one that should be focused primarily on financial issues and therefore, the director of Internal Audits should report to the CFO.
Audit committee member: The committee member felt strongly that the Audit Committee as currently constituted is appropriate and no changes need to be made. Although none of the committee members are trained accountants they all have extensive industry experience, they have all been associated with Nano Circuits in various capacities for many years, and are well qualified to fulfill their policy-oversight responsibilities.
External audit partner: The external audit partner pointed out that the internal audit function should be organized such that it supports a close working relationship with the external auditors. This would include monitoring internal control systems on a continuing basis to provide a body of evidence on which the external auditor can rely.
Director of Internal Audits: The Director of Internal Audits argued that the new IA function should focus more on operational auditing issues, but it also should play a role in the review of internal controls over financial reporting.
Required
a. Describe the role that each of the following areas has in the establishment, maintenance, and evaluation of internal control: i. Management ul. External auditor i. Internal audit
b. To whom should the Director of Internal Audits report? Explain your answer.
c. Comment on the audit committee member’s perspective as to the committee’s current composition.
In: Accounting
Pear Company acquired all of Strawberry, Inc.'s
outstanding
shares on January 1. Pear paid $300,000 and issued $200,000
in long-term liabilities and paid $35,000 in legal fees.
Pear also agreed to pay $75,000 to the former owners of
Strawberry contingent on meeting certain revenue goals during
the following year. Pear estimated the present value of its
probability adjusted expected payment for the
contingency or contingent obligation at $23,000
Precombination book values for Strawberry are as follows:
Current assets $ 85,000
Equipment 90,000
Buildings 175,000
Goodwill 30,000
Total $ 380,000
Current liabilities $ (50,000)
Common stock (180,000)
Retained earnings (115,000)
Revenues (135,000)
Expenses 100,000
Total $ 380,000
Pear's appraisal of Strawberry found two balance sheet
accounts
that differed from fair value. Equipment was undervalued by
$15,000 and Buildings by $5,000. Pear noted that Strawberry
has unrecorded client contracts worth $60,000 and research
and
development activity in process with an appraised
fair value of $90,000
a. What is the total consideration given by Pear?
(Show your calculations.)
b. What values for each of the acquired assets and
liabilities will be used in the consolidation?
In: Accounting
Risk, Return, and the Capital Asset Pricing ModelAs a first day intern at Tri-Star Management Incorporated the CEO asks you to analyze the following in-formation pertaining to two common stock investments, Tech.com Incorporated and Sam’s Grocery Cor-poration. You are told that a one-year Treasury Bill will have a rate of return of 5% over the next year. Also, information from an investment advising service lists the current beta for Tech.com as 1.68 and for Sam’s Grocery as 0.52. You are provided a series of questions to guide your analysis.
Estimated Rate of Return
Economy Probability Tech.com Sam’s Grocery S&P 500
Recession 30% –20% 5% – 4%
Average 20% 15% 6% 11%
Expansion 35% 30% 8% 17%
Boom 15% 50% 10% 27%
Respond to this discussion board:
After doing my calculations I decided that the best option in my opinion would be choosing the second portfolio where $70,000 is invested in tech.com and $30,000 is invested in Sams Grocery Competition. I think this is the best option because it gives a higher return than the first option. I also think that the amount of risk someone is willing to take can play a part in which one is the best option as well because if I was afraid of risk then I would go with the first portfolio. If we don't just look at the numbers and we let risk make the decisions for us then they would probably not make us to choose differently. In this case I could choose either or depending on how much of a risk I am willing to take after examining all of the numbers needed. If I am being risky though then I would stick with the higher returns. In this case for higher returns the second portfolio will be the best option because I can handle the risk
In: Finance
J.J. Heva Company is an American company that prepares its financial statements under US GAAP. In 2014, the company reported income of $5,000,000 wit stockholders’ equity of $40,000,000 on December 31, 2014. In anticipation of possible adoption of IFRS by the US companies, the management wishes to explore possible impacts of the conversion on the company’s financial statements. You are hired to prepare a reconciliation schedule to convert 2014 income as well as stockholders’ equity on December 31, 2014 from US GAAP basis to IFRS. The following information is provided by the company’s accounting department:
In 2012, the company’s pension plan was amended and consequently created a past service cost of $75,000. Half of the past service cost was attributable to already vested employees who had an average remaining service life of 15 years, and half of the past service cost was attributable to non-vested employees who, on average, had two more years until vesting. The company has no retired employees.
In 2014, the company entered into a contract to provide engineering services to a long term customer over a 12-month period. The fixed price is $300,000 and the company estimates with high degree of reliability that the project is 30 percent complete at the end of 2014.
The company publicly announced a restructuring plan in 2014 and created a valid expectation on the part of the employees to be terminated that the company will carry out the restructuring. The estimated cost of restructuring is $500,000. No legal obligation to restructure exists as of December 31, 2014.
Stock options were granted to key officers on January 1, 2014. The grant date fair value per option was $10, and a total of 9,000 options were granted. The options vest in equal installments over three years: one-third in 2013, one-third in 2014, and one-third in 2015. A straight line method is utilized to recognize compensation expense related to stock options.
On January 1, 2013, the company issued $10,000,000 of 5% bonds at par value that matures in five years on December 31, 2017. Costs incurred in issuing the bonds were $500,000. Interest is paid on bonds annually. Assume the effective interest rate is 6.193%.
Make sure your reconciliation statement is accompanied by an adequate explanation and reference for every one of your adjustments. Ignore income taxes.
In: Accounting
J.J. Heva Company is an American company that prepares its financial statements under US GAAP. In 2014, the company reported income of $5,000,000 wit stockholders’ equity of $40,000,000 on December 31, 2014. In anticipation of possible adoption of IFRS by the US companies, the management wishes to explore possible impacts of the conversion on the company’s financial statements. You are hired to prepare a reconciliation schedule to convert 2014 income as well as stockholders’ equity on December 31, 2014 from US GAAP basis to IFRS. The following information is provided by the company’s accounting department:
Make sure your reconciliation statement is accompanied by an adequate explanation and reference for every one of your adjustments. Ignore income taxes.
In: Accounting