Gary smith is purchasing one living unit in a building. what type of housing is gary most likely going to live in

You are going into business with 4 equal partners (not counting yourself). If in 6 years, the business is making a profit of $1,

GarryVolchara [31]

I think ty best answer would be b.

3 0

3 years ago

Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars. To get the maximum tax deduction,

leonid [27]

Answer:

Explanation:

Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2

3 0

3 years ago

Luna wanted to convince the technology department at her company to install new accounting software. Some staff members supporte

Gnom [1K]

Luna realized that the undecided group was her target audience so she focused most of her effort on them.

Explanation:

A targeted audience is a publication, advertising or other text. It is a particular group of consumers in the standard target market of marketing and advertising, known as targets or recipients of a specific ad or email.

In the end, it all includes assessing relevance for a target audience profile. You will attract a customer more often if your services and the goods you deliver suit what your audience wants.

If your customer you want is "everybody," it's very difficult for you to communicate in a deeper way with anyone. The more connected you are to others; the more likely you are to be a protector and a loyal user of your company.

7 0

3 years ago

Vanguilder combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine

sergeinik [125]

Answer:

The company's high-volume products are overcosted.

Explanation:

Vanguilder is currently using a traditional costing which is easy because it often just divides some types of costs equally between different items.

To understand this we take the assumption given in the question that Vanguilder combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours.

So, lets say that Vanguilder is producing 2 products then how will you divide the machine hours between these 2 products?

It's Easy;

The total cost of machine hours divided by units produced and we get the $ amount for each product. But what if product 1 uses more machine hours then product 2?

Is it still fair to write down same amount of machine hours for each product.

We should write bigger machine hour cost for the product 1, right?

This is where Activity Based Costing is different from Traditional Costing.

However, Activity Based Costing finds ways to divide or allocate these costs more proportionally or fairly.

We can write a higher cost for product which use more machine hours.

Hence the following option would be correct:

The company's high-volume products are overcosted.

As, low-volume products require less production allocated using overhead (such as machine hours) than high-volume products. Therefore low-volume product are undercosted, while high-volume product are overcosted.

6 0

3 years ago

Company Pea owns 90 percent of Company Essone which in turn owns 80 percent of Company Esstwo. Company Esstwo owns 100 percent o

ankoles [38]

Answer:

Company Pea

Consolidated financial statements should be prepared to report the financial status and results of operations for:

Essone - 90%

Esstwo = 72% (90% x 80%)

Essthree = 72% (90% x 80% x 100%)

Explanation:

Company Pea is described as the holding or parent company of Company Essone. This means that Essone is Company Pea's subsidiary. In preparing consolidated financial statements to report the financial status and results of operations for Company Essone, Company Pea will consolidate 100% of Company Essone while accounting for noncontrolling interest of 10% (effectively 90%).

When Company Essone is consolidating its financial statements, it should consolidate 80% of Company Esstwo while Esstwo consolidates 100% of Company Essthree.

But since Essthree is also a subsidiary of Company Pea, Company Pea will consolidate Esstwo and Essthree's financials to the tune of 72% respectively, while consolidating 90% of Essone's.

8 0

3 years ago