Are there gray areas? How do companies assure compliance with regulations? How does your company comply? Any thoughts on how to streamline the regulatory process over accounting and finance? Of the several regulatory bodies, which has the most affect on companies?
d. Not sufficient information to determine effect on net income. 29. If a company uses the periodic inventory system, what is the impact on the current ratio of including goods in transit f.o.b. shipping point in purchases, but not ending inventory? a.
Please cite the source of your information. 2. What is the purpose of corporate earnings and profits? 3. Why is not taxable income used to determine if a distribution is a dividend?
Chapter 9 Required 1. Review the earnings per share forecasts. Comment on how these forecasts could influence the market value of the common stock. 2. What is the price/earnings ratio for your company? 3.
Which one? If not, what economic system do you think your nation runs? 2. In the space below, organize your economic data. Highlight statistics that you think would indicate that your country runs a market-oriented economy.
We could bring up the case as a sample to demonstrate what we are discussing about. However, adding a question to prove our point is not recommended in academic writing. The subject line information to identify the situation has to be included on the head of the memo. In addition, clarity, correctness, and courtesy are very important and they represent for our efforts. The memo should be clearly written and organized in direct order, beginning with the objective and then systematically and covering the vital bits of information (Rentz, 2008).
Case 2 Solution: Problem Identification: How should a company account for forfeited stock subscriptions? Moreover, do such payments constitute operating or other income? Keywords: Stock Subscription; operating income; additional paid-in capital; owners’ equity; net income; operating income. Conclusion: Per 505-10-25-2, capital transactions that incur no future corporate obligations should be excluded from calculating net or operating income. Thus, the forfeited cash should become part of additional paid-in capital about any
2. a. Critique Ace Repair’s current method of estimating its before-tax cost of debt. b. Is the earnings yield (E/P) an appropriate measure of the firm’s cost of equity? 3. a.
Smith, Harmelink & Hasselback. Federal Taxation: Comprehensive Topics. CCH, 2013. Pg 14-18-19 states that the corporation should issue long-term debt because debt has certain advantages over equity. Interest payments on the debt are deductible by the corporation while dividends are not deductible.
Include references to any tax code or publications that you use for your answer. week 4 Explain why the tax laws required the cost of certain assets to be capitalized and recovered over time rather than immediately expensed. How does this reasoning compare with the reasoning for financial accounting purposes? Include references to any tax code or publications that you use for your answer. Why are capital gains and dividends taxed at a different rate than ordinary income?