Question 1
If this can't be answered I need a response as soon as possible. Thanks Case III . ReelTime distributes DVDs to movie retailers, including dot-coms. ReelTime?s top management meets monthly to evaluate the company?s performance. Controller Terri Lon prepared the following performance report for the meeting. REELTIME, INC. Income Statement Performance Report Month Ended July 31, 2007 Actual Results Static Budget Variance_ Sales Revenue $1,640,000 $1,960,000 $320,000 F Variable Costs: Variable Costs: 773,750 980,000 206,250 F Sales Commissions 77,375 107,800 30.425 F Shipping Expense 42,850 53,900 11,050 F Total VC 893,975 1,141,700 247,725 F Fixed Costs: Salary Expense 311,450 300,500 10,950 U Depreciation Exp 208,750 214,000 5,250 F Rent Expense 128,250 108,250 20,000 U Advertising Exp 81,100 68,500 12,600 U Total FC 729,550 691,250 38,300 U Total Exp 1,623,525 1,832,950 209,425 F Op Income $ 16,475 $ 127,050 $110,575 U Lon also revealed that the actual sales price of $20 per movie was equal to the budgeted sales price and that there were no changes in inventories for the month. Management is disappointed by the operating income results. CEO Lyle Nesbitt exclaims, ?How can actual operating income be roughly 13% of the static budget amount when there are so many favorable variances?? Requirements 1. Prepare a more informative performance report. Be sure to include a flexible budget for the actual number of DVDs bought and sold. 2. As a member of ReelTime?s management team, which variances would you want investigated? Why? 3. Nesbit believes that many consumers are postponing purchases of new movies until after the introduction of a new format for recordable DVD players. In light of this information, how would you rate the company?s performance?
Question 2
Death and taxes are two (2) certainties that we can plan for in life. The IRS is still able to tax us in death using the estate tax rules as legislated by congress. For this paper, you will be required to respond to the following scenario: A wealthy couple has hired you to advise them on protecting their estate from taxes upon death. They own a farm and several businesses that they would like to pass on to their three (3) children. Using the Internet or Strayer Library, research the IRS?s current level of interest and audits conducted related to estate taxes and proposed changes to legislation related to estate taxes. Write a six to eight (6-8) page paper in which you: Based on your research related to the current level of interest of the IRS related to estate taxes, assess how this information may factor into your advice and level of aggressiveness with tax minimization related to estate taxes and planning for your clients. Provide support for your position. Based on your review of the recent or current legislative proposals related to estate taxes, evaluate the proposal you believe to be most viable. Indicate how such a change may be implemented into the tax law. Provide support for your rationale. Research the impact of estate taxes on a taxpayer?s ability to transfer wealth to their children and tax planning tools used to minimize estate taxes. Indicate the effectiveness of these tools. Propose a strategy to your client to mitigate or eliminate estate taxes and transfer as much wealth as possible to their children within the current estate tax laws and given level of IRS interest in this area. Evaluate and discuss which estate tax provisions would most likely be abused by taxpayers and elevate the potential risk of an IRS audit. Provide support for your position. Imagine that you are appointed by Congress to simplify the estate tax code related to estate taxes. Suggest changes that would be fair to both taxpayers and the federal treasury, indicating how such taxes would be implemented.
Question 3
Bodine B-12.08 Lawrence is employed by Baylor Health Systems. During the month of June, Lawrence worked 195 hours. 15 of these hours were overtime, and were required to be paid at 150% of the normal hourly rate. Lawrence's hourly rate is $12. Lawrence is single, and had $400 of federal income tax withheld from his pay. Baylor is in a state without an income tax. Lawrence's pay is subject to social security taxes at an (assumed) 6.5% rate and Medicare/Medicaid at an (assumed) 1.5% rate. He has not exceeded the annual base for social security taxes. Baylor pays for workers' compensation insurance at a 4% rate. None of this cost is paid by the employee. Baylor provides its employees with health care insurance, and pays 90% of the $500 per employee monthly premium. The other 10% is paid by employees via payroll withholdings. Lawrence participates in a tax-sheltered deferred plan savings and has 8% of his gross pay withheld each month. Baylor Health Systems provides a 75% matching contribution. In other words, for every dollar that Lawrence saves, Baylor will contribute an additional 75 cents. Baylor's payroll is subject to federal (0.5%) and state (1.5%) unemployment taxes on each employee's gross pay, up to $8,000 per year. Lawrence had $6,000 of gross earnings in the months prior to June. Lawrence participates in the Community Chest fund drive each month, via a $25 contribution that is withheld from his pay. (a) Complete Lawrence's pay check and the remittance advice (i.e., "pay stub"). The blank worksheet will be very helpful for this portion of the assignment. (b) Prepare journal entries for Lawrence's pay and the related payroll expenses. (c) What is the total cost to Baylor for Lawrence's services during June?,I found this question on the course hero website, so it may already be answered. It was labeled as accounting 101 in Florida, problem B-12.08 and the worksheet to complete the problem on i also found on the course hero website. Thanks
Question 4
Unfortunately, I have received an email stating that I have to resubmit the questions once again. Please find attached case. The questions that need to be solved are as follows: 1. Assume that at least some rewards for the management team (and, hence, also other employees) are based on performance measured in terms of accounting income and returns on net assets. Also, asume that all of these airlines are growing; that is, they are adding to their fleet size. hat are the behavioral implications of each of three depreciation-related accounting policy choices: (1) depreciation patterns ( i.e. straight-line vs. accelerated, (2) estimated useful lives, and (3) residual values? Consider, at a minimum, the effects of each of these choices on decisions regarding: a) replacements of aircraft in service; b) pricing, assuming that prices are at least somewhat dependent on costs; c) evaluations of routes or lines of business; d) evaluations of managers, assuming that negotiated budgets provide the primary standards of performance. 2. Assume that in a particular US airline company there is a conflict between the benefits of conservatism vs. liberalism in depreciation accounting. Tat is, for this company conservatism in depreciation accounting is geatly preferred for financial reporting purposes (for whatever reason)but for internal purposes the company would be better off if the policies were more liberal, or vice versa. Would you recommend to the managers of this company that they adopt a third set of books? That is, should they maintain one set of books for financial accounting puroses, another set for tax purposes, and a third set for the purposes of running the business? 3. If the managers of a particular airline do not want to maintain a third set of books, should they tend to be conservative or liberal in their aircraft depreciation accounting? Explain.
Question 5
Answer the following questions. Be sure to support your answers by citing the applicable legal theory. There may be more than one correct answer depending on your analysis. Make a legal argument, not an emotional one. No judge wants his/her decision overturned on appeal. The responses are graded and worth up to 5 points each. 1. Your spouse promises to quit nagging you. In exchange you promise to quit smoking. Is this a contract? Who is the offeror and who is the offeree? Is this a Bilateral or unilateral contract? 2. Your neighbor has his boat advertised for sale on Craig?s list. The ad doesn?t list a price. You offer your neighbor $500.00 for his boat and he accepts. Do you have a contract? Who is the offeror and who is the offeree? Is this a bilateral or unilateral contract? 3. Before you bring him the money he gets an offer of $600.00 and sells it to someone else. Can he do that? What if he already moved the boat into your driveway?can he take it back? What if he just signed off the title and gave it to you but kept the boat just in case you didn?t bring him the money?can he demand the title back and still back out of the deal? 4. Your spouse won?t quit nagging you about your smoking so you call Crazy Artie, your mob hit-man friend, and offer him a dollar to ?take care of the problem.? Do you have a contract? Explain why or why not. 5. You get a CD in the mail from an internet company offering you 1000 hours or 45 days of free use. You didn?t pay attention in your business law class so you didn?t read the fine print and forgot to tell them you didn?t want the service after the free trial period ended. You realize this when you get a bill for the service the next month. Do you have to pay it? Explain why or why not. 6. At my garage sale I agree to sell you my entire old record collection for the price you offered and you give me $50.00 to hold it until you get back with the rest of the money. In the meantime a record collector stops by and tells me that some of my records are worth millions of dollars. Realizing that I might be sitting on a gold mine, when you return with the money, I tell you what I have learned and that I will no longer sell it to you. Can I do that? What can you do to enforce the agreement? 7. I sign a work order authorizing an auto repair shop to repair my car. They start the work but before they finish I realize that I can?t pay for it and order them to stop. They go ahead and finish the job. Do I have to pay them for all the work or just the work they did before I told them to stop? Why or why not. 8. We are out drinking in a bar when I promise to pay you $5,000.00 if you?ll run out into the street naked. Having no inhibitions at this point in the evening, you do it. Is this a bilateral or unilateral contract? Do I owe you $5,000.00? What defenses do I have to your claim? 9. I have to bail you out of jail when you get arrested for running down the street naked. I pay a bonding company to issue a bond to the court. Is the bond a formal or informal contract? Since you?re so good at running, you jump bail and don?t show up in court. I lose my deposit for the bond and the bonding company loses the $10,000. for the bond. Can I assign the collection of my deposit to them to collect if they catch up with you? Explain why or why not? 10. On May 1st Tom emails Mary and offers her a job paying $50,000.00 per year. She has 10 days to accept. Mary calls Tom the next day and leaves a message, ?Tom would you also consider paying my medical insurance?? Tom doesn?t respond but Mary later hears that her friend Ed wants the job and told Tom he would accept less salary. Tom then offers Ed the job. On May 8th Mary mails Tom a letter accepting the job for the $50,000.00 salary. Who gets the job, Mary or Ed? Explain your answer.
