1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mama L [17]
2 years ago
8

Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development (R&D) expe

nditures are made for the development of new drugs and the improvement of existing drugs. During 2020, $220 million was spent on R&D. Of this amount, $30 million was spent on the purchase of equipment to be used in a research project involving the development of a new antibiotic.
The controller, Alice Cooper, is considering capitalizing the equipment and depreciating it over the five-year useful life of the equipment at $6 million per year, even though the equipment likely will be used on only one project. The company president has asked Alice to make every effort to increase 2020 earnings because in 2021 the company will be seeking significant new financing from both debt and equity sources. "I guess we might use the equipment in other projects later," Alice wondered to herself.

Assuming that the equipment was purchased at the beginning of 2020, by how much would Alice's treatment of the equipment increase before tax earnings as opposed to expensing the equipment cost?
Discuss the ethical dilemma Alice faces in determining the treatment of the $30 million equipment purchase.
Business
1 answer:
dem82 [27]2 years ago
6 0

1. Alice's treatment of the equipment as <u>useful</u> for five years, would increase <u>before-tax earnings</u> by <u>$24,000</u>, as opposed to expensing the equipment cost.

2. The ethical dilemma facing Alice in determining the treatment of the $30 million equipment purchase involves creating a <u>wrong impact</u> in financial reporting.

<h3>What are ethical dilemmas in accounting?</h3>

Some of the ethical dilemmas in financial accounting include:

  • Conflict of interest
  • Confidentiality
  • Impacts of financial reporting.

Thus, Alice faces the ethical dilemma of making a <u>wrong impact in financial reporting</u> based on the treatment of the $30 million equipment purchase.

Learn more about handling ethical dilemmas in accounting at brainly.com/question/14864299

#SPJ1

You might be interested in
The benefits of a strategic business plan do not include _____.:
djyliett [7]

Answer:

Early precautionary measures of trouble ahead can not be issued.

Explanation:

Since a strategic strategy maps out a path for the organisation to follow, it will enable it tighten its attention in order to get somewhere. Therefore, strategic preparation will help the organisation create the best priorities and strategies and help others concentrate their energies on achieving them.

8 0
3 years ago
Max wants to become a dentist. He knows he needs to keep his GPA high to reach this goal. Which of the following is a mid-term g
larisa [96]

Answer: A goal refers to something you want to achieve. These goals could be short term, mid-term and long term. Short term goals are the ones you want to accomplish in less than a year. Mid-term goals refers to the things you want to achieve in three to five years and long term goals refers to things that take 10 years to accomplish.

(Guessing, i could be wrong but i like helping so here your go i guess)

Explanation:

DOs and DON’Ts

DO Organize your response. Look at the question; it has a natural

organizational pattern – a blueprint.

DO Ask your friends and family to help you remember all the details

from which you can select when you write your essay. It is easy

to forget things you have done in the past.

DO Fit your essay into the big picture of your application. If you say

you have always wanted to be a veterinarian, but have no

evidence to show that you have ever been exposed to that

career, your words will be suspect.

DO Show what you are like as a person, but be as selective as

possible. This is not a biography, but a demonstration of the

characteristics that prompted your career choice.

DO Find a controlling idea for your essay. Smooth prose leaves a

good impression. A series of short, curt sentences does not.

DO Find a controlling idea for your essay. Smooth prose leaves a

good impression. A series of short, curt sentences does not.

DO Be positive and upbeat in tone.

DO Show that you know something more about the field you have

chosen than what you have seen on TV or in movies.

DO Take your drafts to the College Writing Center or ask a

guidance counselor for help. Does the essay flow? Is the main

point clear? Do you sound like a real person (preferably an

interesting real person)? Do you have enough detail? Too much

detail?

DO Revise the essay and proofread.

DO Show your final draft to friends. Ask them, “Does this sound like

me?”

DON’T Just tell a story. You want to explain your career goals in

an interesting way, not entertain with descriptive

adjectives.

DON’T Assume names of people and places give enough

information. Describe your activities and experiences as

they relate to your career goals.

DON’T Write what you think the scholarship committee wants to

hear. The committee members can detect b.s. before

opening the packet.

DON’T Use clichés or generalities. This wastes valuable space and

time.

DON’T Brag. Trust that your good points will shine through

7 0
3 years ago
Read 2 more answers
How does the BCG Matrix classify products?
tigry1 [53]

BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position of the business brand portfolio and its potential. It classifies business portfolio into four categories based on industry attractiveness (growth rate of that industry) and competitive position (relative market share

5 0
3 years ago
An increase in the relative price of a good cannot be caused byA) an increase in the nominal price of the good that is greater t
quester [9]

Answer:

C) an increase in the nominal price of the other good while the price of the good itself remains constant.

Explanation:

Relative price is the price of a good relative to the price of another good. It is also known as real price.

Nominal price is the price of a good in money terms.

Let's assume the price of bread is $5 and the price of a frame is $7. The relative price is $5 / $7 =0.7 and the nominal prives are $5 and $7. Assume:

1. That the price of bread rises to $10 And the price of a frame rises to $8. The relative price rises from 0.7 to 1.25.

2. That the price of bread remains constant and the price of frames fall to $5. The relative price becomes 1.

3. Assume frames rise to $8 while bread remains $5. The relative price becomes 0.625.

4. Assume bread decreases To $4 And frames decrease to $3. The relative price becomes 1.3.

It is only the third scenario that doesn't increase the relative price of bread.

I hope my answer helps you.

5 0
4 years ago
Company A manufactures a moderately priced set of lawn games that sells for $125. The company currently manufactures and sells 2
AfilCa [17]

Answer:

$27,500

Explanation:

As mention in the question the company selling the 2000 seats

also the manufacturing cost is =$40

Direct labor cost =$15

As the seat company  A =500 seats

So the Direct Material Cost= seat company  A allotment *manufacturing cost

=500*40

=$20,000

Also the Direct labor cost =seat company  A allotment *direct labor cost

=$500*$15

=$7500

Therefore the total relevant cost of the firm is

=Direct Material cost +Direct labor cost

=$20,000+$7500

=$27,500

5 0
4 years ago
Other questions:
  • Karen has a net operating loss in 2016. if she does not make any special elections, what is the first year to which karen can ca
    8·1 answer
  • The government builds a new water-treatment plant. the owner of the company that builds the plant pays her workers. the workers
    6·1 answer
  • The purpose of a budget is to:
    10·2 answers
  • When you buy a ________ you are loaning money to an organization at a certain interest rate for a certain period of time.
    12·2 answers
  • On December 31, 2018, employees who earn $500 per day have worked eight days and will be paid on January 6, 2019. The adjusting
    15·1 answer
  • Mergers and acquisitions result in the consolidation of assets and liabilities of two companies under one entity. However, a mer
    8·1 answer
  • U Co. had cash purchases and payments on account during the current year totaling $455,000. U's beginning and ending accounts pa
    13·1 answer
  • QUESTION 4 of 10: A stadium manager has signed five acts this year with a combined revenue projection of $1,000,050. The cost fo
    7·1 answer
  • How long does someone stay on your best friend list on Snap chat??​
    12·1 answer
  • What is the fullform of <br> MD,GM<br>​
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!