1. Find the proper FASB ASC citation that provides guidance on the measurement of an impairment loss for a long-lived asset. (The citation must follow xxx-xx-xx-xx or xxx-xx-xx-x format)

2. To prepare for the construction of its new headquarters, ABC company purchased a 500-acre plot of land on July 12, 2016. ABC company purchased the land using 25% cash and financed the balance using 9% loan from XYZ bank. The company began preparation of the land for the construction of the building on January 15, 2017. Which section of the FASB ASC explicitly states whether the 2016 interest on the bank loan qualifies for capitalization? (The citation must follow xxx-xx-xx-xx or xxx-xx-xx-x format)

3. A recent issued demographic report indicates that there is a reasonable probability that ABC company's business may be adversely impacted in the future. The company's controller wants to begin accruing a general contingency reserve now for unspecified business contingencies, such as the potential decline in business that may occur in the future. Find FASB ASC as to whether or not such an accrual is allowed under GAAP. (The citation must follow xxx-xx-xx-xx or xxx-xx-xx-x format)

4. ABC company suffered inventory loss from market declines in April, 2017. As the result, the company wrote off $7,000 cost of inventory. However, the price of the same inventory was fully recovered in October, 17. Which section of the FASB ASC explicitly states whether or not recovery of such inventory loss can be written up? (The citation must follow xxx-xx-xx-xx or xxx-xx-xx-x format)

Please explain/show all work.

On 11/1/X1 JacobCo Inc. hired an external engineering firm to design a new production line to produce a new fishing lure product line. The design of the new production line was completed on 11/28/X1 and JacobCo. Inc. received an invoice from the engineering firm in amount of $225,000. Construction started on a new production line on 12/8/X1 and was completed on 12/31/X1. The total construction cost of the new production line was $895,000. Interest expense from 11/1/X1 when the project was started to 12/31/X1 when it was completed amounted to $43,000 in total. Of that total interest expense $4,200 was attributable to the new production line.

The production line had an estimated engineering physical life of eight years. It is estimated that the production line could be scrapped and have a salvage value of approximately $30,000 at the end of that time.

The marketing department estimated that the new fishing lure product line would provide revenues to JacobCo. Inc. for the next five years. At the end of that time period the fishing lure product line will be discontinued and the production line will be scrapped and will sold for $10,000. The marketing department also estimates that the total number of fishing lures that will be sold over the next five years will be 500,000 units. The production line started into operation on 1/1/X2.

Required: Calculate depreciation for 12/31/X2 and 12/31/X3 and make the required journal entries using :

A. Straight line depreciation.

B. 200% double declining balance.

C. Units of Production assuming that 102,500 lures were produced in the year ending 12/31/X2 and 91,000 lures were produced in the year ending 12/31/X3.

Suppose that you work for Camden Property Trust (Links to an external site.), a multi-family REIT in the southern US, and that your company wants to add another apartment building to its investment portfolio. After conducting a thorough market analysis, you have narrowed your search to three properties located in different areas in Houston, Texas. All of the properties have a similar number of units, and the units are also similar with regard to mix and sizes. The primary differences is the supply and demand in the different market areas, and the consideration of newer versus older properties

Option 1: The first property is currently built and operating in a middle income area that has a shortage of housing. At this time, the building has no vacancy, but there are some new apartments being built nearby that will soon be competing with this property. This is the oldest property, and will likely be impacted by the new construction in the area that may take away tenants.

Option 2: The second property is currently under construction, and is being sold because the developer has run out of money, and is unable to finish the project. However, it is likely that your firm could complete the building at a favorable per-unit cost. The market area is close to equilibrium, but with some excess supply, and the completion of this property would add even more. However, it would be a new building – something that is often attractive to potential tenants.

Option 3: The third property currently has a relatively high vacancy rate. However, the market area has become an increasingly desirable area to live and demand is expected to grow. There is also little threat of new competition here because there are no sites available to build additional apartment complexes. Given these vacancy considerations, which property would you choose? Are there other investment factors that may be impacted by these considerations?

Assistant Project Manager Jim Rains was 26 years old, newly hired at a large commercial construction company, and was assigned to work on a $34 million dollar university classroom project in the southeast United States. Upon arriving on the job site, Jim was introduced to head superintendent Bob Moore who had been with the firm for 25 years. Bob was an exceptionally proficient organiser and was often requested by clients for the supervision of their construction projects. As the project began, things on the whole went smoothly. In fact, Jim was learning and taking on more project management responsibilities every day.

The winter and spring months brought many days of rain. Often, Bob would have to send several carpenters home because there was nothing at the construction site for them to do when it was raining. This did not sit well with the carpenters when they could only work 3 days per week (and were paid for 3 days’ work) because of rainouts. Other times, Bob would not send the carpenters home, but would have them sweep up the floors that were already under roof. This activity would normally take 2 hours with a crew of 4, but Bob would be forced to pay them for a full 8-hour day. Some days Bob, being one to hate inefficiency (and the potential loss of workers not returning to the site after being sent home), sent some of the carpenters (who would normally be just standing around and sweeping on rainy days) to his home to work. There the carpenters would work on interior framing, finish carpentry, and hang drywall in Bob's new addition. Bob figured that as long as the carpenters were just hanging around the site with little to do, they might as well earn their pay.

The third time Bob sent carpenters to his house on a rainy day; Jim decided to talk with Bob about the issue of billing the carpenter's hours to the job site construction cost. Bob was very noncommittal about the whole issue leaving Jim with the dilemma of confronting one of the company's best superintendents. After three more days of watching several carpenters go to Bob's house to work, Jim could no longer stomach the practice and told Bob that it was unethical to use company employees for personal work. Bob told Jim that if he did not send the carpenters home on rainy days, they would get paid for basically doing nothing. By sending the carpenters to his house to use their skills, he was keeping his workers motivated and satisfied instead of laying them off or having them do small, time-filling jobs.
Getting nowhere with the superintendent, Jim had some major decisions to make. Should he go to the project manager or someone in the home office? What would the company think about some new employee questioning the practices of a long-term employee?

Because Jim was new to the organization, he decided to talk with Bob one more time and asked that he discontinue billing employee hours to the construction project if they were in fact working on Bob's own house. Bob again refrained from doing anything, only commenting that the workers would soon be able to work a normal 5-day workweek because the rainy season was about to end. Jim still could not let the issue go.

a) What key ethical principles are potentially being compromised in this case based on your understanding of PMI’s code of ethics?
b) Are these ethical concerns adequate and valid reasons for Jim to decide to quit as the Project Manager? Provide a detailed justification.
c) If you were Jim, what actions would you take now that Bob again refrained from doing anything?
d) Is it right for Jim to seek advice from his close friends on how to deal with this problem? Justify your answer.

Linda is a 60-year-old woman with moderate mental retardation who has recently been diagnosed with congestive heart failure. Her doctor has recommended that Linda lose weight, get regular exercise, and eat low sodium, low cholesterol diet. She lives in an adult living facility. Linda works at a local shelter. She is required to bring lunch to the shelter every day and she always brings a bologna and cheese sandwich, a bag of pretzels and a chocolate chip cookie. During her morning break, she always gets a Coke and a bag of potato chips from the vending machine for a snack. Linda has eaten this same diet every day for at least 25 years and is very resistant to the idea of changing what she eats for lunch every day. After work Linda has staff that supports her in cooking dinner and she has tried a variety of foods. On the weekends her favorite thing to do is to go to Burger King for a Whopper with cheese and a large French fries. Linda has support with going grocery shopping. She is willing to pick out a variety of foods, but she always insists on buying pretzels and potato chips. She becomes very angry when staff suggest that she leave the store without the two items. Linda had had no trouble taking medication as she has staff who remind her in the morning and at night that she needs to do this. She also has support with monitoring her weight every day. She must monitor her weight to assure that she is not retaining water. Linda does not get any regular exercise. She has trouble climbing the set of stairs to her second-floor apartment. A couple of weeks ago one of the staff that supports her tried taking her for an hour walk in a near-by park. She had to turn around after 15 minutes because she was exhausted, and declared that she would never go walking again. Linda is fascinated by machines. One of the staff on weekends noted that she watched several infomercials about treadmills, rowing machines, and other types of exercise equipment. What are the behaviors that need to be changed? What health promotion actions would help? What additional supports or information might motivate Linda? Do you believe Linda can follow her doctor's recommendations? Why or why not?

When a sound wave travels directly toward a hard wall, the incoming and reflected waves can combine to produce a standing wave. There is an antinode right at the wall, just as at the end of a closed tube, so the sound near the wall is loud. You are standing beside a brick wall listening to a 80Hz tone from a distant loudspeaker.

How far from the wall must you move to find the first quiet spot? Assume a sound speed of 340 m/s.

The US economy has shrunk 5% due to the impact of the Covid19 pandemic. President Trump has passed a piece of legislation that allows for 5 Trillion dollars to be put back into the economy, through near-zero interest loans for business, and payments of nearly $2,000 for the population. How do you think people will use their $2,000 payment, and why. How do you think industry will use their much larger payments, and why. Comment on short term, and long term application.

• Interest rates are at historic lows in many countries—in some cases, close to zero. How is expansionary monetary policy, or more specifically an open market purchase, supposed to work? How do near-zero interest rates limit the ability of expansionary monetary policy to work?
• In your opinion, how effective has the Australian Government’s policy been as a response to the economic downturn due to the Covid-19 situation? What evidence can you suggest to support your position?

A “conventional gear” tailwheel airplane has the center of mass aft of the two main wheels and a smaller, third wheel at the tail. A “tricycle gear” airplane has the center of mass forward of the two main wheels and the third wheel near the nose. Consider a shiny, new airplane landing on its main wheels, with the fuselage at a left yaw angle with respect to the direction of motion down the runway. With which of these two types of landing gear would the airplane be easier to land? Explain.