An organization uses SSO authentication for employee access to network resources. When an employee

resigns, as per the organization’s security policy, the employee’s access to all network resources is terminated immediately. Two weeks later, the former employee sends an email to the help desk for a password reset to access payroll information from the human resources server. Which of the following represents the BEST course of action?

1. Approve the former employee’s request, as a password reset would give the former employee access to only the human resources server.
2. Deny the former employee’s request, since the password reset request came from an external email address.
3. Deny the former employee’s request, as a password reset would give the employee access to all network resources.
4. Approve the former employee’s request, as there would not be a security issue with the former employee gaining access to network resources.

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Phishing emails frequently take advantage of high-profile catastrophes reported in the news. Which of the following principles BEST describes the weakness being exploited?

1. Intimidation
2. Scarcity
3. Authority
4. Social proof

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An organization is working with a cloud services provider to transition critical business applications to a hybrid cloud environment. The organization retains sensitive customer data and wants to ensure the provider has sufficient administrative and logical controls in place to protect its data.

In which of the following documents would this concern MOST likely be addressed?

1. Service level agreement
2. Interconnection security agreement
3. Non-disclosure agreement
4. Business process analysis

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part-time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).

The Fergusons reported making the following payments during the year:

a. State income taxes of $4,400. Federal tax withholding of $21,000.
b. Alimony payments to John's former wife of $10,000. (divorced on 12/31/2014).
c. Child support payments for John's child with his former wife of $4,100.
d. $12,200 of real property taxes.
e. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer.
f. $3,600 to Kid Care daycare center for Samantha's care while John and Sandy worked.

g. $14,000 interest on their home mortgage ( $400,000 acquisition debt).

h. $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and a new car.
i. $15,000 cash charitable contributions to qualified charities.
j. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

Required:
What is the Fergusons's 2020 federal income taxes payable or refund, Including any self-employment tax and AMT, if applicable?

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).

The Fergusons reported making the following payments during the year:

State income taxes of $4,400. Federal tax withholding of $21,000. Alimony payments to John’s former wife of $10,000 (divorced on 12/31/2014). Child support payments for John’s child with his former wife of $4,100. $12,200 of real property taxes. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha’s care while John and Sandy worked. $14,000 interest on their home mortgage ($400,000 acquisition debt). $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,000 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

What is the Fergusons' 2020 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?

If you were appointed as President and CEO of a firm how would you implement a plan to have the company act ethically? How does one go about making a company ethical? Be specific and justify your approach.

In 200 words or more, discuss some of the issues that accountants face after an investment has been acquired. One example would be how goodwill is accounted for on the financial statements after an acquired company is consolidated on the financial statements.

In 200 words or more, discuss some of the issues that accountants face after an investment has been acquired. One example would be how goodwill is accounted for on the financial statements after an acquired company is consolidated on the financial statements.

Branson paid $546,200 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a book value of $420,000 (common stock of $200,000 and retained earnings of $220,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $108,000 fair value. Any remaining excess fair value was considered goodwill.

In negotiating the acquisition price, Branson also promised to pay Wolfpack’s former owners an additional $64,000 if Wolfpack’s income exceeded $140,000 total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability-adjusted present value of this contingent consideration at $44,800. On December 31, 2020, based on Wolfpack’s earnings to date, Branson increased the value of the contingency to $51,200.

During the subsequent two years, Wolfpack reported the following amounts for income and dividends:

In keeping with the original acquisition agreement, on December 31, 2021, Branson paid the additional $64,000 performance fee to Wolfpack’s previous owners.

Prepare each of the following:

1. Branson’s entry to record the acquisition of the shares of its Wolfpack subsidiary.

2. Branson’s entries at the end of 2020 and 2021 to adjust its contingent performance obligation for changes in fair value and the December 31, 2021, payment.

3. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method.

4. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the initial value method.

Branson paid $573,200 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a book value of $430,000 (common stock of $200,000 and retained earnings of $230,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $133,000 fair value. Any remaining excess fair value was considered goodwill.

In negotiating the acquisition price, Branson also promised to pay Wolfpack’s former owners an additional $44,000 if Wolfpack’s income exceeded $150,000 total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability-adjusted present value of this contingent consideration at $30,800. On December 31, 2020, based on Wolfpack’s earnings to date, Branson increased the value of the contingency to $35,200.

During the subsequent two years, Wolfpack reported the following amounts for income and dividends:

In keeping with the original acquisition agreement, on December 31, 2021, Branson paid the additional $44,000 performance fee to Wolfpack’s previous owners.

Prepare each of the following:

1. Branson’s entry to record the acquisition of the shares of its Wolfpack subsidiary.

2. Branson’s entries at the end of 2020 and 2021 to adjust its contingent performance obligation for changes in fair value and the December 31, 2021, payment.

3. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method.

4. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the initial value method.

David Wong, the product manager of KiKi Company, was reviewing the production schedule for the last quarter of 2020. He noted that the company planned to sell 4,000 units during the year and keep a minimum closing inventory level at 100 units on 31 December 2020. As at 30 September 2020, the following data was reported.

Units

Inventory, 1 January 2020 0

Production 3,000

Sales 2,700

Inventory, 30 September 2020 300

At the beginning of the year, the company rented a warehouse that could store its inventory up to 1,250 units. The company had a maximum production capacity of 2,300 units per quarter.

Required:

(a) Assume that KiKi Company adopted marginal costing,
(i) what is the minimum units that the company should produce during the last quarter of 2020?

(ii) will the number of units produced affect the company’s profit or loss for the year? Explain.

(b) Assume that the company adopted absorption costing and David was given an annual bonus based on the company’s reported profit. If David wanted to maximize his bonus in 2020, how many units would he produce? Explain.

(c) Advise the management of the company on the costing method that should be chosen to determine David’s bonus?

1. In company X, the CEO did not support the ERP implementation but he has no objection to proceed. Do you think the ERP will successfully implemented?   Explain.