Homework Help for Accounting

Identify the applicable accounting convention for the following business scenario and explain your choice

Regal Enterprises has purchased $45,000 worth new equipment for use in its manufacturing operations and would like to write off the cost of this equipment in just a couple of years, instead of the usual 10 years for this equipment type. The company's president fears that the economic conditions in its industry will worsen and cause the company to sell the equipment sooner than expected

If a company produces some "seconds" that cannot be sold at thenormal price through regular distribution channels, which of thefollowing is/are relevant for setting a minimum selling price?Select all that apply

Assume that, at the end of 1999 (1998), Pfizer reported thatreplacement cost (equivalent to FIFO) for its inventories that arevalued using LIFO accounting were $15 ($8) million greater than theLIFO valuation. Ignoring the impacts of any acquisitions anddivestitures, how much income “from continuing operations beforeprovision for taxes on income and minority interests” would havebeen reported by Pfizer if it had used replacement cost accounting(FIFO) during 1999? Show work and discuss the advantages of FIFOover LIFO and vice versa.

X Company is considering buying a part next year that theycurrently make. This year's production costs for 3,100 unitswere:

A company has offered to supply this part for $14.44 per unit. If XCompany buys the part, $6,650 of the fixed overhead can be avoided.Also if X Company buys the part, it can use the freed-up resourcesto increase production of another product, resulting in additionalcontribution margin of $2,200. Production next year is expected tobe 3,400 units.

2. If X Company buys the part instead of making it, it willsave

3. X Company is uncertain what production will be next year.What production level would make X Company indifferent betweenmaking and buying the part?

Visit the Small Business Administration website at www.sba.gov (Links to an external site.)Links to an external site.. There are valuable resources here for anyone starting a business. Investigate the topics under the “Starting and Managing” menu. Discuss at least two topics a potential business owner should know/investigate prior to start up.

Some financial instruments can have both debt and equity features. The most common example is convertible debt— bonds or notes convertible by the investor into common stock. A topic of debate for several years has been whether:

1. Issuers should account for an instrument with both liability and equity characteristics entirely as a liability or entirely as an equity instrument depending on which characteristic governs or

2. Issuers should account for an instrument as consisting of a liability component and an equity component that should be accounted for separately.

Which of the two options do you favor and why? Develop and explain your argument. In considering this question, you should disregard the current position of the FASB on the issue. Instead, focus on conceptual issues regarding the practicable and theoretically appropriate treatment, unconstrained by GAAP. Also, focus your deliberations on convertible bonds as the instrument with both liability and equity characteristics.

Theoretically, could the most devoted altruist in a society alsobe its richest and happiest member? How? And in what situationwould an egoist decide that a lie is morally wrong?

Briarcrest Company issued $90,000, 10-year, 8% bonds. The bondspay interest annually, and were issued at a $5,200 premium. Whichof the following statements is true?

Are companies willing to provide information voluntarily, if so,when and why?

This is a good academic question that seems to have only oneanswer. But with what we now know, should ethics be a requiredclass all employees take? (How effective are ethic classes?) Pleasethink about this one; the answer (to me) is not so simple.

International Accounting 4th addition. In chapter 8, problem 14,for Retained earnings, why are they using the average exchange rateof .80 versus the historical exchange rate of .84 and what's thedifference between the two?