Marketing Plan Apple Inc

Objectives The company pursues many objectives with the marketing plan. The objectives will be specific, measurable, attainable and timely (Trika, 2010). In other words, Apple Inc will follow the SMART model in developing and implementing its objectives. The marketing objectives of the company includesAdvertising We will write a custom essay sample on Marketing Plan: Apple Inc specifically for you for only $16.05 $11/page Learn More To improving the customer engagement and relationship with the company and its products by 50% To increase the company’s website traffic by 45% To increase the presence of the company’s brand across the social media channels by 50% To improve on the positive feedback concerning the company brand by 40% The objectives must be attained within three years. However, increasing the website traffic as well as the presence of the company’s brand is expected to be attained within the first year of the plan. In fact, the presence of the company’s brand will be attained by increasing the number of times the products are mentioned on the social media. In addition, the number of comments as well as the number of followers within the social networking sites applied by the company will also measure the brand presence. The numbers of comments are expected to reach 1000 by the end of the first year of the plan while the numbers of followers are expected to reach 1650 in the same year. The number of individuals and the companies that have visited the website will measure the objective of increasing the number of traffic. The objectives are attainable given the set targets against the period. In addition, given the past trends, the results can be achieved within the given time. Content Most of the information will be retrieved from the company website. However, other related marketing journals will also provide valuable information concerning the marketing plan. Most importantly, the marketi ng researches that have been conducted will provide valuable information to be applied in this plan (Wild, 2012). Moreover, the reports from the promotions, conference presentations as well as other events will provide valuable information on the company’s performance. In essence, the external sources of information will includes The websites including the applied social media websites as well as the search engine websites. Articles written concerning the company Journals both academic and non academic concerning the company and its brand products Marketing research reports that have been conducted concerning the company and its products Reports from the company marketing activities including promotions, presentations and events Blog posts regarding the company products, brand and activities Press releases concerning the company brands as well as the products Video records on the company events Text messages and e-mails received by the company regarding the products and the brand. Networks Depending on the objectives and the target clients, Apple Company will explore various innovative social media platforms to promote its services in order to reach its targeted users. The social sites have offered new opportunities for the company to promote its products and services as well as reach the target users at reduced costs. Facebook The main social networking site that the company will utilize is facebook. Currently, facebook is the largest social networking site in the world (Hemley, 2013). Facebook will allow the company to reach the target market through users’ profile information such as different age brackets as well as their attention altitudes. For example, most of the younger generation use of phones and ipads for online socialization. Studies show that people between the ages 21-24 are the biggest users of facebook at about 17% (Bowker, 2013). Because of this popularity, the social site provides a good site for the company to increase its p resence as well as the brand to the target market.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More LinkedIn Another important social networking site the company will utilize is LinkedIn. Primarily, LinkedIn promotions target people with certain aptitudes and designations. Therefore, it is considered a complex form of experts’ social networking since allows communication between professionals such as accountancy and legal services among others within the Apple Company (Close, 2012). Due to the proficient information LinkedIn uses in its commercials, it is useful in adverts targeting the professionals. Twitter Twitter provides the best platform for the company to increase its presence among the users of its products (Jacobson, 2013). Twitter is currently developing self-service commercial methods targeting an array of people particularly the company’s target group. In addition, the twitter target enthusiasts of the open and common social site handlers. Twitter mostly target users within the age bracket of twenty-five and above. Therefore, Apple Company that intends to attract the age groups will embrace the use of twitter to increase its presence. Implementation and monitoring schedule As indicated, the objectives and goals of the plan will be implemented within three years and the expected the result will measured against the set targets (Gamse, 2012). Within three years, the overall results of the marketing plan are expected to be attained and benefit the company. Moreover, the set objectives will be monitored and evaluated against the expected results (Zarrella, 2009). Upon realization that the expected results cannot be attained, the goal will be redefined and oriented according to the needs of the market. However, such circumstances are not expected since the situation has been analyzed through the application of SWOT and PESTLE models reducing the ch ances of any eventuality. The evaluation of the progress will conducted on six months interval within three years period. The implementation and monitoring schedule indicated will be applied in the evaluation of the expected results. objective Expected results Attained results Period covered Expected timeline Customer engagement 50% 3 Years Website traffic 45% 1 Year Brand presence 50% 1 Year Positive feedback 40% 3 Years As shown in the implementation and monitoring schedule, the attained results will be measured on half-yearly basis pegged on the expected results. In the period covered column, the number of months will be recorded and checked against the expected timeline as well as the progress in the attained results. In case the attained results rise against the increasing number of months, then the results are positive. However, in case the attained results decrease with the increasing number of months, the results are negative. Under the circumstances th at the results are negative, a timeline may be prolonged or the objective may be redefined depending on the practical feedback.Advertising We will write a custom essay sample on Marketing Plan: Apple Inc specifically for you for only $16.05 $11/page Learn More There are several activities involved in the implementation process. The activities are critical in the attainment of the set objectives (Baron Shane, 2008). Activities such as training of the staff, engaging with the target audience and developing the content are significant in the implementation of the marketing plan. Such activities will also be taken into consideration during the implementation process. Measuring the success of the goals As mentioned before, the performance of the goals will be measured on their performance against the set targets. In addition, the success of the goals will be measured based on the SMART model. In other words, the goals of the company will be deemed successfu l when the expected results are attained (Ash, 2013). In this case, however, once the goals have reached or surpassed the set percentage, then the goal will be deemed successful. The first objective was to increase the customer engagement by 50 % across all the social media the company will utilize. The number of posts on the company’s social media page as well as followers will measure customer engagement (Ash, 2013). The company expects to increase the number to 10, 000 within three years. The number will account for an increase of 50% of the total number the company currently have. In case the targets are attained within the specified period, then the objective has met the requirement and is deemed successful. Similarly, the presence of the company’s brand will be measured by the number of times the products are mentioned on the social media. In addition, the number of comments as well as the number of followers within the social networking sites applied by the comp any will be used to measure the brand presence. The numbers of comments are expected to reach 1000 by the end of the first year of the plan while the numbers of followers are expected to reach 1650 in the same year. The number of individuals and the companies that have visited the website will measure the objective of increasing the traffic. Under the circumstances that the set targets are achieved, then the goals and objects are deemed successful. References Ash, M. (2013). Understand the real value of lead generation to generate the greatest return. Web.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Baron, R. Shane, A. (2008). Entrepreneurship: A process perspective. Mason, OH: Cengage Learning. Bowker, S. (2013). A summary of what marketers can learn from the Data-Driven Marketing Survey 2013, Europe. Web. Close, A. G. (2012). Online consumer behavior: theory and research in social media, advertising and E-Tail. London, UK: Routledge. Gamse, P. (2012). 42 Rules for a web presence that wins: essential business strategy for website and social media success. Washington, DC: Happy About. Hemley, D. (2013). 26 tips to create a strong social media content strategy. Web. Jacobson, J. L. (2013). 42 rules of social media for small business. Washington, DC: Happy About. Trika, J. (2010). Buyer’s guide on choosing the right search engine marketing agencies and tools. Bloomington, Indiana: AuthorHouse. Wild, M. (2012). Social media marketing strategy report. Journal of Marketing Research, 46(12), 67-73. Zarrella, D. (2009). The social media marketing. Sebastopol, CA: O’Reil ly Media. This essay on Marketing Plan: Apple Inc was written and submitted by user Ali Huff to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

The Experts Guide to the AP Calculus AB Exam

The Expert's Guide to the AP Calculus AB Exam SAT / ACT Prep Online Guides and Tips Are you taking the AP Calculus AB exam this spring and want to be well prepared on test day?The AP Calculus AB exam in 2020 will be held on Tuesday, May 5, at 8 am. Before you sit down to take the exam, though, it’s critical that you know how the Calculus AB test is formatted, what topics it covers, and how you’ll be scored on it. This guide will go over all of that information while also showing you official sample problems and giving you tips on the best way to prepare for AP Calculus AB. The exam was updated in May 2017, sothis guide will explain what changes have been made and how they might affect your review.The AP Calculus AB exam can sometimes seem overwhelming, but we're here to break it down into clear and manageable information for you. Let’s get started! What’s the Format of the AP Calculus AB Exam? The AP Calculus AB exam is three hours and 15 minutes long and has two sections. Both of these sections are divided into two parts (based on whether or not a calculator is allowed). Multiple-Choice Section Here is an overview of the format of the AP Calculus AB multiple-choice section: 45 questions total One hour 45 minutes total Worth 50% of your total score Part A 30 questions 60 minutes No calculator allowed Part B 15 questions 45 minutes Calculator required Note that the AP Calculus AB exam has had small changes made to its format. Previously, Part A of the multiple-choice section had 28 questions, and Part B had 17 questions. Free-Response Section Here is a rundown of the format of the AP Calculus AB free-response section: Six questions total One hour 30 minutes total Worth 50% of your total score Part A Two questions 30 minutes Calculator required Part B Four questions 60 minutes No calculator allowed This can all look a little complicated, but basically, the AP Calculus AB exam consists of four parts. The first two are multiple choice, and the last two are free response. You are required to use a calculator for the middle two parts (one each for multiple choice and free response), but you may not use a calculator for the first and last parts of the exam. What Topics Does the AP Calculus AB Exam Cover? Content on the Calculus AB exam can be divided into three main topic areas, referred to by the College Board as Big Ideas.Within these three Big Ideas are more specific topics called Enduring Understandings (often abbreviated as â€Å"EU†). Each Enduring Understanding contains both Learning Objectives and Essential Knowledge that the student should have learned by the time of the exam. As I mentioned, there have been some updates to the AP Calculus AB exam. Fortunately, they’re relatively minor changes that mostly have to do with how the course framework is structured, and this will affect instructors of the course more than it will you.The only significant change to the content of the AP Calculus AB exam is that L’Hospital’s Rule will now be included on it- and students will be expected to understand and apply it. I’ve listed each of the Big Ideas and their Learning Objectives below,since these are the most relevant for students looking for what the exam covers. For the sake of length and clarity, I left out the Enduring Understandings and Essential Knowledge. If you’d like to see these, as well as more detailed information on the content covered by the exam, check out the officialAP Calculus AB Course Description. Still, know that the information below will give you a solid look at what you’re expected to know for the exam. Learning Objectives are listed below Big Ideas. These Learning Objectives are skills that students are expected to know how to do for the exam. Big Idea 1: Limits Express limits symbolically using correct notation Interpret limits expressed symbolically Estimate limits of functions Determine limits of functions Analyze functions for intervals of continuity or points of discontinuity Determine the applicability of important calculus theorems using continuity Big Idea 2: Derivatives Identify the derivative of a function as the limit of a difference quotient Estimate derivative Calculate derivatives Determine higher order derivatives Use derivatives to analyze properties of a function Recognize the connection between differentiability and continuity Interpret the meaning of a derivative within a problem Solve problems involving the slope of a tangent line Solve problems involving related rates, optimization, and rectilinear motion Solve problems involving rates of change in applied contexts Verify solutions to differential equations Estimate solutions to differential equations Apply the Mean Value Theorem to describe the behavior of a function over an interval Big Idea 3: Integrals and the Fundamental Theorem of Calculus Recognize antiderivatives of basic functions Interpret the definite integral as the limit of a Riemann sum Express the limit of a Riemann sum in integral notation Approximate a definite integral Calculate a definite integral using areas and properties of definite integrals Analyze functions defined by an integral Calculate antiderivatives Evaluate definite integrals Interpret the meaning of a definite integral within a problem Apply definite integrals to problems involving the average value of a function Apply definite integrals to problems involving motion Apply definite integrals to problems involving area and volume Use the definite integral to solve problems in various contexts Analyze differential equations to obtain general and specific solutions Interpret, create, and solve differential equations from problems in context AP Calculus AB Sample Questions Looking at sample questions is one of the best ways to get a feel for what the AP Calculus AB exam will be like. Here arefour sample questions, one from each part of the AP exam.Each of these questions was taken from the official AP Calculus AB Course Description, which you can look at for more complete answer explanations and additional sample problems. Multiple Choice (No Calculator) This question tests your ability to calculate derivatives. You'll need to use the chain rule to differentiate composite functions. The correct answer to this problem is B. Multiple Choice (Calculator Allowed) This question tests your ability to solve problems with rapid rates of change. You'll have to find the derivative in order to findthe rate of change of the temperature of the water. The correct answer is B. Free Response (Calculator Allowed) This question tests your knowledge of integrals. Parts A, B, and C are each worth 3 points. Free Response (No Calculator) This question tests your knowledge of multiple topics, including derivatives and integrals. You can receive up to 1 point for part A, 2 points for part B, and 3 points each for parts C and D. How Is the AP Calculus AB Exam Scored? As mentioned, the multiple-choice section and the free-response section are each worth 50% of your total exam score. For the multiple-choice section, you earn 1 point for each question you answer correctly. No points are deducted for incorrect answers, so you should answer every question! You can earn up to 45 points for this section. For the free-response section, each of the six questions is worth 9 points, so you can earn up to 54 points. Different parts of each question can beworth a different amount of points (for example, on one question you may be able to earn up to 1 point for part A, 3 points for part B, 3 points for part C, and 2 points for part D). After your points are added up for each of your sections, your AP Calculus AB score is converted to the standard AP scoring scale of 1-5.The exact formula for doing this can change slightly from year to year. However, in 2008, the process for converting raw AP scores to scaled scores involved multiplying the number of multiple-choice questions you answered correctly by 1.2272,and then adding that number to the points you received on the free-response section. This valueis rounded to the nearest whole number and becomes your composite score. Each AP score (from 1-5) corresponds to a range of composite scores. Below,you can see the conversion chart and score distributions for test takers from the 2018 Calculus AB exam: Composite Score Range AP Score % of Students Who Got Score 0-26 1 20.0% 27-38 2 22.4% 39-51 3 21.0% 52-67 4 17.3% 68-108 5 19.4% Source: The College Board 3 Tips for Preparing for the AP Calculus AB Exam Studying for the AP Calculus AB exam can be tough. Use these three tips to make your studying more effective and increase your chances of getting a great score. Tip 1: Memorize Important Formulas There are certain formulas for AP Calculus AB that you should have down pat.There's no formula sheet given on the AP exam, so you’ll have to memorize the formulas you'll need. Many teachers give out formula sheets for students to memorize. There are also various formula cheat sheets you can use to review before the exam. To find these, simply Google â€Å"AP Calculus AB formula sheet† and look at your options. In general, any formula you use regularly in class is a good one to memorize.Major formulas you should have memorized include those for limits, differentiation, and integration, as well as the fundamental theorems. Tip 2: Know How to Use Your Calculator You’re allowed to use your calculator for two of the four exam parts, and most of the questions in these two sections will be difficult, if not impossible, to solve without a graphing calculator. While it might seem obvious that you should know how to work your calculator, knowing exactly how and when to use its different functions can save you a lot of time on the exam and increase your chances of getting the correct answer. According to the College Board, the four calculator capabilities you’ll use the most during the AP Calculus AB exam and should easily be able to do with your calculator are as follows: Plot the graph of a function within an arbitrary viewing window Find the zeros of functions (solve equations numerically) Numerically calculate the derivative of a function Numerically calculate the value of a definite integral When you’re preparing for the exam, be sure that you know how to do each of these (completing practice problems can help!). Tip 3: Get Used to Showing All Your Work For most free-response questions on the AP Calculus AB test, the final answer to a problem is only worth 1-2 points out of a possible 9.This means that the majority of points are earned through intermediate steps of the problem- and if you don’t show how you reached those intermediate steps, you won’t get a high score on this section. Even if you get a correct answer by using your calculator, you have to write the setup (such as the equation being solved or the derivative being evaluated) as well as the answer in order to get credit for your work. You might be used to not writing down certain work that seems particularly obvious on homework and class tests. However, even if your teacher doesn’t mind, AP graders will. Remember that APgraders are more interested in how you reached your final answer than they are in what that final answer is, so get yourself in the habit of showing each step of your work well before exam time. Conclusion: What to Know About the AP Calculus AB Exam The AP Calculus AB exam can be intimidating if you don’t know what to expect.Knowing how the exam will be formatted and what types of questions it will ask can go a long way toward helping you feel more prepared and confident on test day. The exam has two sections, multiple-choice and free-response, which are each divided into two parts, based on whether or not you may use a calculator.Each of these sections is worth 50% of your total AP score. The exam itself covers three main topics: Limits Derivatives Integrals and the Fundamental Theorem of Calculus In order to prepare for the AP Calculus AB exam in the best way, keep these three tips in mind during your review: Memorize important formulas Know how to use your calculator Get used to showing all your work What's Next? Now that you know what the AP Calculus AB exam covers, the next step is to practice!Read our guide to getlinks toevery Calculus AB practice test available online. Wondering how challenging other AP classes are? Learn what the easiest AP classesareand what the hardest AP classes are so that you know exactly what to expect! Not surewhich other math classes you should take? Math is often the trickiest school subject to choose classes for, but our guide will help you figure out exactly which math classes to take for each year of high school. Want to improve your SAT score by 160 points or your ACT score by 4 points? We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

Analysis Of A Linear Accelerator

Analysis Of A Linear Accelerator Nowadays patient with cancer are treated by radiation, surgery, chemotherapy or with a combination of these options. The radiotherapy treatment unit used to deliver radiation to cancerous cells and tissues is the linear accelerator, also known as linac. The linear accelerator has been defined by Khan F. M. (2003) as a device that uses high-frequency electromagnetic waves to accelerate electrons, to high energies through a linear tube. The electron beam itself can be used for treating superficial toumors, or it can strike a target to produce x-rays for treating deep-seated toumors. The energy used for the radiotherapy treatment of deep situated tissues varies from 6-15 MV (photons) and the treatment of superficial toumors (less than 5cm deep) is between 6-20MeV. (Khan, 2003) The purpose of this essay is to describe a linear accelerator, analyse its components in the stand and the gantry of the linac, and explain the principles of operation and then discuss why it is best situated to the task for which it was designed. Some advantages and disadvantages of the linac will also be included in the discussion part of the essay. Main body: Figure 1:http://www.cerebromente.org.br/ As you can see from the schematic picture above, the major components of a linac are: Klystron: source of microwave power Electron gun: source of electrons. Waveguide (feed and accelerating waveguide): microwaves travel through the feed waveguide and then to the accelerating waveguide, where electrons are accelerated from the electron gun. Circulator: a device that prevents microwaves of being reflected back from the accelerator. Cooling water system: cools the components of the linac. Bending magnet: â€Å"A bending magnet is used to change the direction of the accelerated electron beam from horizontal to vertical.† (Hendee et al, 2005) X-ray target: electrons hit the target and produce x-rays. Flattening filter: even out the intensity of the beam. Ionisation chambers: they control th e dose leaving the head of the linac. Beam collimation: shape the radiation beam to a certain size Klystron: There are two types of microwave power. The klystron and the magnetron. Magnetrons are used for lower energy linacs. In the high energy linear accelerator klystron is used. All modern linacs have klystrons. Both klystron and magnetron are special types of evacuated tubes that are used to produce microwave power to accelerate electrons. (Karzmark and Morton, 1998). â€Å"The tube requires a low-power radiofrequency oscillator to supply radiofrequency power to the first cavity called the buncher.† (Hendee et al, 2005) In the bunching cavity, electrons produced from the electron gun, are bunched together to regulate their speed. The microwave frequency is thousands times higher than ordinary radio wave frequency. For a linac to work, the microwave frequency needed is 3 billion cycles per second. (3000MHz) (Karzmark and Morton, 1998) Electron gun: The electron gun is part of the klystron. Here, electrons are produced and then accelerated to radiofrequency cavities. The source of electrons is a directly heated filament made from tungsten, which will release electrons by thermionic emission. (Bomford, 2003) Tungsten is used because it is a good thermionic emitter with high atomic number, providing a good source of electrons. Klystrons usually have 3-5 cavities, used to bunch electrons together and increase microwave power amplification.

MRP 4 Assignment Example | Topics and Well Written Essays - 1000 words

MRP 4 - Assignment Example According to Andree, R. G. (1974), In the US, elementary schools start from kindergarten up to second grade (k-2). Learning at this state is crucial since it’s the foundation of the education for the children. Therefore, if the teaching staff is motivated they will deliver quality concepts and also influence the performance of the learners. However, if demoralized learns won’t learn well; hence, the general performance is affected. Teaching at elementary school is currently challenging and demanding where technology is used in teaching therefore motivation of teachers is necessary to even go for computer classes. Underperformance is also a big challenge due insufficient efforts by the teaching staff especially in public schools. The research will try to address the cause of teachers de-motivation and determine whether motivation approaches will improve their teaching hence the overall performance of the learners. This approach entails the ways that can be suitable to increase the motivation of the teachers. Factors that usually reinforce motivation are applied so as to create interest for the staff hence job satisfaction. The approach used depends on the source of motivation. It can either be intrinsic or extrinsic. Intrinsic entails physical, mental and spiritual recognition and praise, responsibility for ones work and being comfortable at work. In this context, extrinsic motivation as an approach may include; training of staff and advancement in their career. Inclusion of the teachers in decision making will enable them identify critical areas and find out the best ways of finding solutions. Decision making enables them own the career hence will increase their drive force (Thomas, K., 2002). Provision of good working environment and also permitting them to go for further studies in their teaching area will improve their motivation. Dan Airley said that people think about motivation and payment as the same thing when they

A Scientific Model for Grassroots O.D Assignment

A Scientific Model for Grassroots O.D - Assignment Example Instead, their efforts in O.D. lead to disappointing results. Regarding the need for grassroots O.D., no one can change an organization. Each individual within an organization needs to contribute to cultural change in order to achieve positive results in O.D. Besides, mentorship programs could be very effective. A grassroots O.D. model is again useful as it involves setting the bar, motivating change, sustaining the change, and scaling the change to enterprise. Essentially, drive to change is achieved through passionate commitment, which is characterized by good roles and actins, supporting organizational resources, and managing risks. To bring out all the points about O.D. effectively, the article is divided into various sections. An abstract is written to introduce the article and all it entails. The introduction section defined the problem and its background, including the models used. Each model is discussed in depth with respect to the topic, but the main model addressed is the grassroots O.D. model. The article is written in a scholarly manner with all sections being addressed including the methodology, achievement of the model, and conclusion/ summary. To show that the intensive study and research has been conducted from other sources, the resources used are indicated. The article is well presented, but it lacks a clear distinction in the three key sections of a scholarly article, especially the methodology, and

Technology and Health Care Paper Essay Example for Free

Technology and Health Care Paper Essay Abstract In the todays global world, technology has grown rapidly and there seems to be no signs of it ever slowing down soon. Computer softwares have provided technological advancements in the health care industry. Consultants have become synonymous within the medical practices and community to provide a wide range of innovative ideas that is geared to making any organization thrive. ABC Consultants is a large prestigious organization hired by the Lady of Merced Care home to help develop an innovative approach using their current computer software and technology. This paper will describe the software product recommended by the author. This paper will discuss the impact of this product to the operation and patient care service provided by the care facility. In the end, a discussion regarding the social, ethical, and economic impact of your product, service, or application to the organization will be enumerate in this paper. Technology and Health Care Paper It is hard to imagine a world without computer devices, electronic data transfer of real-time information and high-tech software programs geared for any aspect of any business market. Throughout the years the technology becomes a major part of health industry. Health care has been one of the successful benefactors of these emerging technologies. Terry, N. (2012) made mentioned in his article that, Todays impact on health care is noted in the use of health care beyond the clinic or hospital setting. The Health  Information Technology (IT) has improved medical outcomes and has transformed healthcare delivery. As the demand for technological advancement heightens the competitiveness within the care home facilities become evident. Now days, case workers and potential residents are looking for facilities willing to provide not just great care but just in time collaboration efforts between the care team. Residential care facilities, case managers and patients are aware of the availability of special software used to create and maintain paperless medical records which can allow immediate access to the patients medical history. For the care home facility office this special software can assists in keeping track of the stock of medicines, purchases and sales, billing, charts, and staff information and much more. Storing data collected and medical reports of patients is easier with computers, and with both privacy and environmental concerns being a part of todays world, maintaining the data in computers is a more eco-friendly way of storing this information. Lady of Merced is a residential care facility licensed to care for 15-20 mentally disabled young adults. The facility is licensed and is a vendor of the Regional Center of The East Bay under the jurisdiction of the Department of Health. This highly regulated branch of the health care industry serves to protect not only these disabled individuals patient right as well as their dignity and independence. In order to maintain funding by these entities, data collection regarding various points must be collected and stored. These datas range from consumers individual living skills, training, behavioral episodes and activities to name a few. State compliance records such as fire drills, continuing educations; personnel, payroll and tax information to name a few must also be recorded and kept. Having been in business for over 10 years, Lady of Merced has barely managed to pass the annual compliance audits and even risked having their license revoked on several occasions. This year, the administrator has vowed to ensure that the facility does not get any sanction from the auditors thus Lady of Merced seeked the assistance of the ABC Consulting firm. After an in depth analysis of the situation, ABC consulting firm highly  recommended that Lady of Merced acquire a new software system called NEXT GEN. Next Gen is made by reputable medical software company and is used by facilities and providers in the area. This will ensure that access not only to the internal documents can be achieved but also any outside information can be interfaced with proper authorization and linkage. In the health care field a person who handles the software is called the Administrative information systems support tech. They will be able to manage all financial, demographic information, payroll, financial, client management and human resources easily. Without this software the business may not appear organized and competitive with other care home providers. Technology is vital to the health care industries, but the administrative component is what makes technology work. Without technology it would be hard to visualize the impact of the data gathered by the care givers and providers. There are care home operators owning more than 2 facilities and managing them successful in the midst of the current placement shortages. Their success seems to be attributed to the efficiency and effectiveness of their operation. The successful integration of data collected and status reminders helps build awareness and demand for follow thru. This is important, because it gives care givers more time to focus on the consumers and not the business aspect of the job. Having to remember and hand write all the info rather than using a click of a button can be time consuming and inefficient. This technology gives the medical organization the ability to become paperless by using the Electronic Health Systems or EHS. The paperless technology helps secure patients privacy by making their information less accessible to those who are not privileged into that system. The biggest benefit of this technology is of course money such that pens, paper, and ink cartridges usage will be minimized. This technology can help reduce mistakes by having fewer errors in missed read hard written notes and misspelled prescriptions. Medical records are also easier to get with this technology. This system will help reduce mistakes by making patients notes understandable and also identify the patient easier. Another thing the EHS system implements on being Green. This technology not only helps the facility become more effective, but it helps to depend on less things that damages the world by using hardly any paper. The usage of technology for the human resources department can streamline the hiring, payroll and other labor related compliance required by all the different regulatory agencies. In the past Lady of Merced spent a lot of money due to the high staffing turn-over ratio and outsourcing fees. The management of any workers compensation and labor cost can now become more automated. Now with technology on hand the facility can now see all the recruiting, training, performance evaluations, and staffing planning within reach. There are many care home facilities which uses basic technology, but more and more are upgrading to the next level to become more appealing to a prospective resident. In doing so, program effectiveness is inevitable and increase in revenue can be achieved. As Shi, l. (2012) states Todays medical centers and integrated delivery organizations are among the most complex organizations to manage. Leaders in health care delivery face some unique challenges, including changes in financing and payment structures, as well as having to work with reduced levels of reimbursement. As any technological advancement, one must consider the social, ethical and economical impact this technology would pose. Next Gens economic impact will certainly be felt in the beginning as the organization must invest in the acquisition, training, and maintenance of this new program. There may also be delays with any current billing cycle due to the transition phase. The social and ethical implication this software can bring would certainly be assurance that patient care is not compromised at any cost. Ethically we have an obligation to not only protect but advocate for a normalcy of life for these consumers. We can only ensure that through the knowledge that all data a re submitted and results are achieved through this accurate info. In conclusion, many health care organizations even specialized small facilities such as Lady of Merced Care home are investing in the latest technology in order to keep up with demands of todays competitive globalized industry. This move not only creates but also maintains the competitive edge of the facility by catering the needs of their consumers. Technology strategy does cost, but it does pay when you offer services that  no other medical organization offers. This paper described the software product recommended by the author. This paper discussed the impact of this product to the operation and patient care service provided by the care facility. In the end, a discussion regarding the social, ethical, and economic impact of your product, service, or application to the organization was enumerate in this paper. REFERENCES: Shi, L. (2012). Delivering health care in American: A systems approach. (5th Ed.). Boston, MA: Jones Bartlett. Terry, N (2012), Information Technologys Failure to Disrupt Healthcare. Indiana University Robert H. McKinney School of Law Research Paper No. 2012-16. Available at SSRN: http://ssrn.com/abstract=2118653 or http://dx.doi.org/10.2139/ssrn.2118653

Arnold Schoenbergs Musical Influence Essay -- Arnold Schoenberg Music

Arnold Schoenberg's Musical Influence Arnold Schoenberg was one of the greatest musical influences of the mid 20th Century. He was born on September 13, 1874, to a Jewish family in Vienna, Austria (Schoenberg 1). Schoenberg was a young Jewish man during World War I (WWI) living in Berlin. He was directly affected by the invasion of the Nazis. In 1933, he had to leave Berlin and desert his faith for Lutheranism later on taking on the faith of Judaism. At the early age of eight, he began violin lessons and almost immediately started composing music (Schoenberg 1). He was self-taught until the age of 10 when he began formal training (Schoenberg 1). He earned a living by orchestrating operettas, directing a cabaret orchestra, and teaching. Schoenberg influenced the music and art of the western culture in numerous ways. Some of the most successful composers were his students. These students were molded by Schoenberg and directly absorbed his knowledge and style. Schoenberg created different rhythms and tunes that were passed along to his students and other composers. He was able to catch the attention of a multitude through his writings, music, paintings, and post cards. This variety of talent gathered a larger audience and catered to their needs. Being that Schoenberg often traveled and taught at his destination, he was well known throughout the world and influenced many. Schoenberg taught over thousands of students within a fifty-year period including Austrian composers Anton Webern and Alban Berg (Bailey 2). Schoenberg did not view teaching as a job but rather as an inspirational motivation tool. He said: â€Å"I must confess that I was a passionate teacher, and the satisfaction of giving to beginners as much as possible of my own knowledge was probably a greater reward that the actual fee I received (Simms 1).† His passion was passed down to his students encouraging a musical revolution. The more he taught, the more lives he influenced. Students serve as a great preservation of history and culture. They take what they have learned, add their style to it, and it starts the domino effect from there. It is obvious that Schoenberg regarded teaching as more than a job but a way to influence and enhance culture. He felt that he didn’t gain from what he was taught unless he had already discovered it. Schoenberg created a twelve-tone method and many rhythms and tu... ...eavy Metal, Country, and Broadway are based on the concepts of temperament and tonality defined by Schoenberg. He created a twelve-tone method and many wonderful rhythms and tunes. His greatest joy in life was to teach. He wanted to influence students to take chances and to have their own musical styles. He was never afraid to show his own styles and expressions to the world. Works Cited Arnold Schoenberg Center: The Portrait of a Century at http://www.schoenberg.at/1_as/essay/essay_e.htm Arnold Schoenberg – Born: September 13, 1874 Vienna/ Died: July 13, 1951 Los Angeles, California at http://www.wwnorton.com/classical/composers/schnbrg.htm Arnold Schoenberg - The American Works at http://www.schirmer.com/composers/schoenberg_essay.html Arnold Schoenberg: (1874-1951) at http://w3.rz-berlin.mpg.de/cmp/schonberg.html Arnold Schoenberg Center: Schoenberg as a Teacher http://www.schoenberg.at/1_as/schueler/lehrerschueler_e.htm Bailey, Walter B. The Arnold Schoenberg Companion. Greenwood Press, 1998 Simms, Bryan R. The Atonal Music of Arnold Schoenberg, 1908-1923. Oxford US, 2000 Journal of the Arnold Schoenberg Institute IX/1 June 1986. Arnold Schoenberg's Musical Influence Essay -- Arnold Schoenberg Music Arnold Schoenberg's Musical Influence Arnold Schoenberg was one of the greatest musical influences of the mid 20th Century. He was born on September 13, 1874, to a Jewish family in Vienna, Austria (Schoenberg 1). Schoenberg was a young Jewish man during World War I (WWI) living in Berlin. He was directly affected by the invasion of the Nazis. In 1933, he had to leave Berlin and desert his faith for Lutheranism later on taking on the faith of Judaism. At the early age of eight, he began violin lessons and almost immediately started composing music (Schoenberg 1). He was self-taught until the age of 10 when he began formal training (Schoenberg 1). He earned a living by orchestrating operettas, directing a cabaret orchestra, and teaching. Schoenberg influenced the music and art of the western culture in numerous ways. Some of the most successful composers were his students. These students were molded by Schoenberg and directly absorbed his knowledge and style. Schoenberg created different rhythms and tunes that were passed along to his students and other composers. He was able to catch the attention of a multitude through his writings, music, paintings, and post cards. This variety of talent gathered a larger audience and catered to their needs. Being that Schoenberg often traveled and taught at his destination, he was well known throughout the world and influenced many. Schoenberg taught over thousands of students within a fifty-year period including Austrian composers Anton Webern and Alban Berg (Bailey 2). Schoenberg did not view teaching as a job but rather as an inspirational motivation tool. He said: â€Å"I must confess that I was a passionate teacher, and the satisfaction of giving to beginners as much as possible of my own knowledge was probably a greater reward that the actual fee I received (Simms 1).† His passion was passed down to his students encouraging a musical revolution. The more he taught, the more lives he influenced. Students serve as a great preservation of history and culture. They take what they have learned, add their style to it, and it starts the domino effect from there. It is obvious that Schoenberg regarded teaching as more than a job but a way to influence and enhance culture. He felt that he didn’t gain from what he was taught unless he had already discovered it. Schoenberg created a twelve-tone method and many rhythms and tu... ...eavy Metal, Country, and Broadway are based on the concepts of temperament and tonality defined by Schoenberg. He created a twelve-tone method and many wonderful rhythms and tunes. His greatest joy in life was to teach. He wanted to influence students to take chances and to have their own musical styles. He was never afraid to show his own styles and expressions to the world. Works Cited Arnold Schoenberg Center: The Portrait of a Century at http://www.schoenberg.at/1_as/essay/essay_e.htm Arnold Schoenberg – Born: September 13, 1874 Vienna/ Died: July 13, 1951 Los Angeles, California at http://www.wwnorton.com/classical/composers/schnbrg.htm Arnold Schoenberg - The American Works at http://www.schirmer.com/composers/schoenberg_essay.html Arnold Schoenberg: (1874-1951) at http://w3.rz-berlin.mpg.de/cmp/schonberg.html Arnold Schoenberg Center: Schoenberg as a Teacher http://www.schoenberg.at/1_as/schueler/lehrerschueler_e.htm Bailey, Walter B. The Arnold Schoenberg Companion. Greenwood Press, 1998 Simms, Bryan R. The Atonal Music of Arnold Schoenberg, 1908-1923. Oxford US, 2000 Journal of the Arnold Schoenberg Institute IX/1 June 1986.

Deltona Lines Inc

Then Del-Bess would be the entity to purchase the assets from Jay Transportation and lease them to Boson Freight Company. The remaining 60 million necessary to fund the purchase would be provided by bank financing. There are four main issues within this case. The first is, is this a temporary control issue for Dalton. Temporary control means that a primary company forms a Joint venture with a secondary company that would be a temporary investment to help the primary company to acquire the sought company. Business structure was formed by two or more parties for a specific purpose.Joint ventures usually are limited to one or two projects or purposes. The case Is referring to equity-based Joint ventures which benefits foreign and/or local private interests, groups of interests, or members of the general public. Benefit of this would be that partners would save money and reduce their risks through capital and resource sharing. One key difference in partnership and Joint venture is that t he Joint venture is based on a single business transaction. An example Is that Boson Freight Company wanted to Join with Dalton In purchasing Jay Transportation Inc.The second Issue is why Dalton would want to avoid consolidation. Dalton would want to avoid consolidation because It doesn't own any common stock or its investment might be temporary. Due to preferred stock may also be callable, meaning that the company has the option to purchase the shares from shareholders at anytime for any reason (usually for a premium). A third issue is how Dalton should account for their investment for financial report purposes (equity or cost). Del-sees subsidiary should be reported under the equity method by Dalton because of 80 percent controlling Interest.Under equity method, we record the investments at cost and adjust for earnings, losses, and dividends. Dalton would have consolidated financial statements due to 80 percent voting preferred stock. The last issue for Dalton is does the fair va lue method present a viable option for reporting and why or why not. Yes. Dalton Flanagan reporting would report Investment at cost, then by using the working paper entries to adjust cost to fair alee this would allows the two companies to consolidate the subsidiary (Dell-Bess) with the parent (Dalton) and identify the controlling interest share.

Cpa Questions

Multiple Choice—CPA Adapted Chapter 14 – Long Term Liabilities 1. On July 1, 2010, Spear Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2010 and mature on April 1, 2020. Interest is payable semiannually on April 1 and October 1. What amount did Spear receive from the bond issuance? a. $1,015,000 b. $1,000,000 c. $990,000 d. $965,000 2. On January 1, 2010, Solis Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1, 2020. The bonds were issued for $3,405,000 to yield 8%, resulting in bond premium of $405,000.Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2010, Solis's adjusted unamortized bond premium should be a. $405,000. b. $377,400. c. $364,500. d. $304,500. 3. On July 1, 2009, Noble, Inc. issued 9% bonds in the face amount of $5,000,000, which mature on July 1, 2015. The bonds were issued for $4,695,00 0 to yield 10%, resulting in a bond discount of $305,000. Noble uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2011, Noble's unamortized bond discount should be a. 264,050. b. $255,000. c. $244,000. d. $215,000. 4. On January 1, 2010, Huff Co. sold $1,000,000 of its 10% bonds for $885,296 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Huff report as interest expense for the six months ended June 30, 2010? a. $44,266 b. $50,000 c. $53,118 d. $60,000 5. On January 1, 2011, Doty Co. redeemed its 15-year bonds of $2,500,000 par value for 102. They were originally issued on January 1, 1999 at 98 with a maturity date of January 1, 2014. The bond issue costs relating to this transaction were $150,000.Doty amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Doty recognize on the redemption of these bonds (ignore taxes)? a. $90,000 b. $60,000 c. $50,000 d. $0 6. On its December 31, 2010 balance sheet, Emig Corp. reported bonds payable of $6,000,000 and related unamortized bond issue costs of $320,000. The bonds had been issued at par. On January 2, 2011, Emig retired $3,000,000 of the outstanding bonds at par plus a call premium of $70,000. What amount should Emig report in its 2011 income statement as loss on extinguishment of debt (ignore taxes)? . $0 b. $70,000 c. $160,000 d. $230,000 7. On January 1, 2006, Goll Corp. issued 1,000 of its 10%, $1,000 bonds for $1,040,000. These bonds were to mature on January 1, 2016 but were callable at 101 any time after December 31, 2009. Interest was payable semiannually on July 1 and January 1. On July 1, 2011, Goll called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Goll's gain or loss in 2011 on this early extinguishment of debt was a. $30,000 gain. b. $12,000 gain. c. $10,000 loss. d. $8,000 g ain. 8. On June 30, 2011, Omara Co. ad outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2011 were $105,000 and $30,000, respectively. On June 30, 2011, Omara acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt? a. $2,970,000. b. $2,895,000. c. $2,865,000. d. $2,820,000. 9. A ten-year bond was issued in 2009 at a discount with a call provision to retire the bonds.When the bond issuer exercised the call provision on an interest date in 2011, the carrying amount of the bond was less than the call price. The amount of bond liability removed from the accounts in 2011 should have equaled the a. call price. b. call price less unamortized discount. c. face amount less unamortized discount. d. face amount plus unamor tized discount. 10. Paige Co. took advantage of market conditions to refund debt. This was the fourth refunding operation carried out by Paige within the last three years. The excess of the carrying amount of the old debt over the amount paid to extinguish it should be reported as a a. ain, net of income taxes. b. loss, net of income taxes. c. part of continuing operations. d. deferred credit to be amortized over the life of the new debt. *11. Eddy Co. is indebted to Cole under a $400,000, 12%, three-year note dated December 31, 2009. Because of Eddy's financial difficulties developing in 2011, Eddy owed accrued interest of $48,000 on the note at December 31, 2011. Under a troubled debt restructuring, on December 31, 2011, Cole agreed to settle the note and accrued interest for a tract of land having a fair value of $360,000. Eddy's acquisition cost of the land is $290,000.Ignoring income taxes, on its 2011 income statement Eddy should report as a result of the troubled debt restruc turing Gain on DisposalRestructuring Gain a. $158,000$0 b. $110,000$0 c. $70,000$40,000 d. $70,000$88,000 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | a| 5. | a| 7. | d| 9. | c| *11. | d| 2. | b| 4. | c| 6. | d| 8. | c| 10. | c| | | No. AnswerDerivation 1. a($1,000,000 ? .99) + ($1,000,000 ? .10 ? 3/12) = $1,015,000. 2. b$405,000 – [($3,000,000 ? .10) – ($3,405,000 ? .08)] = $377,400. 3. a2009–2010:$4,695,000 + [($4,695,000 ? 1) – ($5,000,000 ? .09)] = $4,714,500. 2010–2011:$4,714,500 + ($471,450 – $450,000) = $4,735,950 $5,000,000 – $4,735,950 = $264,050. 4. c$885,296 ? .06 = $53,118. 5. a($2,500,000 ? 1. 02) –= $90,000. 6. d($3,000,000 + $70,000) – [($6,000,000 – $320,000) ? 1/2] = $230,000. 7. d – ($1,000,000 ? 1. 01) = $8,000. 8. c$3,000,000 – ($105,000 + $30,000) = $2,865,000. 9. cConceptual. 10. cConceptual . *11. d$360,000 – $290,000 = $70,000 ($400,000 + $48,000) – $360,000 = $88,000. Chapter 15 – Stockholders’ Equity 1. A corporation was organized in January 2007 with authorized capital of $10 par value common stock.On February 1, 2010, shares were issued at par for cash. On March 1, 2010, the corporation's attorney accepted 7,000 shares of common stock in settlement for legal services with a fair value of $90,000. Additional paid-in capital would increase on February 1, 2010March 1, 2010 a. YesNo b. YesYes c. NoNo d. NoYes 2. On July 1, 2010, Nall Co. issued 2,500 shares of its $10 par common stock and 5,000 shares of its $10 par convertible preferred stock for a lump sum of $125,000. At this date Nall's common stock was selling for $24 per share and the convertible preferred stock for $18 per share. The amount of he proceeds allocated to Nall's preferred stock should be a. $62,500. b. $75,000. c. $90,000. d. $68,750. 3. Horton Co. was organized on Janua ry 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Horton had the following capital transactions: January 5—issued 375,000 shares at $14 per share. July 27—purchased 25,000 shares at $11 per share. November 25—sold 15,000 shares of treasury stock at $13 per share. Horton used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2010? . $0. b. $15,000. c. $30,000. d. $45,000. 4. In 2010, Hobbs Corp. acquired 9,000 shares of its own $1 par value common stock at $18 per share. In 2011, Hobbs issued 4,000 of these shares at $25 per share. Hobbs uses the cost method to account for its treasury stock transactions. What accounts and what amounts should Hobbs credit in 2011 to record the issuance of the 4,000 shares? TreasuryAdditionalRetainedCommon StockPaid-in CapitalEarnings Stock a. $72,000$70,000 b. $72,000$28,000 c. $96,000$4,0 00 d. $68,000$28,000$4,000 5. At its date of incorporation, Sauder, Inc. ssued 100,000 shares of its $10 par common stock at $11 per share. During the current year, Sauder acquired 20,000 shares of its common stock at a price of $16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of $12 per share. There have been no other issuances or acquisitions of its own common stock. What effect does the reissuance of the stock have on the following accounts? Retained EarningsAdditional Paid-in Capital a. DecreaseDecrease b. No effectDecrease c. DecreaseNo effect d. No effectNo effect 6. Farmer Corp. owned 20,000 shares of Eaton Corp. urchased in 2007 for $240,000. On December 15, 2010, Farmer declared a property dividend of all of its Eaton Corp. shares on the basis of one share of Eaton for every 10 shares of Farmer common stock held by its stockholders. The property dividend was distributed on January 15, 2011. On the declaration date, the aggregate market price of the Eaton shares held by Farmer was $400,000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of a. $0. b. $160,000. c. $240,000. d. $400,000. 7. A corporation declared a dividend, a portion of which was liquidating.How would this distribution affect each of the following? Additional Paid-in CapitalRetained Earnings a. DecreaseNo effect b. DecreaseDecrease c. No effectDecrease d. No effectNo effect 8. On May 1, 2010, Ziek Corp. declared and issued a 10% common stock dividend. Prior to this dividend, Ziek had 100,000 shares of $1 par value common stock issued and outstanding. The fair value of Ziek ‘s common stock was $20 per share on May 1, 2010. As a result of this stock dividend, Ziek's total stockholders' equity a. increased by $200,000. b. decreased by $200,000. c. decreased by $10,000. d. did not change. . How would the declaration and subsequent issuance of a 10% stock dividend by the issuer af fect each of the following when the market value of the shares exceeds the par value of the stock? Additional Common StockPaid-in Capital a. No effectNo effect b. No effectIncrease c. IncreaseNo effect d. IncreaseIncrease 10. On December 31, 2010, the stockholders' equity section of Arndt, Inc. , was as follows: Common stock, par value $10; authorized 30,000 shares; issued and outstanding 9,000 shares$ 90,000 Additional paid-in capital116,000 Retained earnings 174,000 Total stockholders' equity$380,000On March 31, 2011, Arndt declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair market value of the stock was $18 per share. For the three months ended March 31, 2011, Arndt sustained a net loss of $32,000. The balance of Arndt’s retained earnings as of March 31, 2011, should be a. $125,800. b. $133,000. c. $134,800. d. $142,000. *11. At December 31, 2010 and 2011, Plank Corp. had outstanding 2,000 shares of $100 par value 8% cumulative p referred stock and 10,000 shares of $10 par value common stock. At December 31, 2010, dividends in arrears on the preferred stock were $8,000.Cash dividends declared in 2011 totaled $30,000. What amounts were payable on each class of stock? Preferred StockCommon Stock a. $16,000$14,000 b. $22,000$8,000 c. $24,000$6,000 d. $30,000$0 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 3. | c| 5. | c| 7. | b| 9. | d| *11. | c| 2. | b| 4. | b| 6. | d| 8. | d| 10. | a| | | No. AnswerDerivation 1. dConceptual. 2. b($24 2,500) + ($18 5,000) = $150,000. $90,000 ————— ? $125,000 = $75,000. $150,000 3. c15,000 $2 = $30,000. 4. b(4,000 $18) = $72,000; (4,000 $7) = $28,000. . cConceptual. 6. d$400,000 (market value). 7. b Conceptual. 8. dConceptual. 9. dConceptual. 10. a$174,000 – $32,000 – (900 $18) = $125,800. *11. c($200,000 . 08) + $8,000 = $24,000; $30,000 – $24,000 = $6,000 Chapter 16 — Dilutive Securities ; Earnings Per Share 1. On January 2, 2010, Farr Co. issued 10-year convertible bonds at 105. During 2012, these bonds were converted into common stock having an aggregate par value equal to the total face amount of the bonds. At conversion, the market price of Farr’s common stock was 50 percent above its par value.On January 2, 2010, cash proceeds from the issuance of the convertible bonds should be reported as a. paid-in capital for the entire proceeds. b. paid-in capital for the portion of the proceeds attributable to the conversion feature and as a liability for the balance. c. a liability for the face amount of the bonds and paid-in capital for the premium over the face amount. d. a liability for the entire proceeds. 2. Lang Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. The sum of the fair value of the warrants and the face amount of the bonds exceeds the cash p roceeds.This excess is reported as a. Discount on Bonds Payable. b. Premium on Bonds Payable. c. Common Stock Subscribed. d. Paid-in Capital in Excess of Par—Stock Warrants. 3. On January 1, 2010, Sharp Corp. granted an employee an option to purchase 6,000 shares of Sharp's $5 par value common stock at $20 per share. The Black-Scholes option pricing model determines total compensation expense to be $140,000. The option became exercisable on December 31, 2011, after the employee completed two years of service. The market prices of Sharp's stock were as follows: January 1, 2010$30 December 31, 201150For 2011, should recognize compensation expense under the fair value method of a. $90,000. b. $30,000. c. $70,000. d. $0. *4. On January 2, 2010, for past services, Rosen Corp. granted Nenn Pine, its president, 16,000 stock appreciation rights that are exercisable immediately and expire on January 2, 2011. On exercise, Nenn is entitled to receive cash for the excess of the market pr ice of the stock on the exercise date over the market price on the grant date. Nenn did not exercise any of the rights during 2010. The market price of Rosen's stock was $30 on January 2, 2010, and $45 on December 31, 2010.As a result of the stock appreciation rights, Rosen should recognize compensation expense for 2010 of a. $0. b. $80,000. c. $240,000. d. $480,000. Multiple Choice Answers—Dilutive Securities, CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 2. | a| 3. | c| *4. | c| No. AnswerDerivation 1. dConceptual. 2. aConceptual. 3. c$140,000 ? 2 = $70,000. *4. c($45 – $30) ? 16,000 = $240,000. Earnings Per Share 5. Didde Co. had 300,000 shares of common stock issued and outstanding at December 31, 2010. No common stock was issued during 2011. On January 1, 2011, Didde issued 200,000 shares of nonconvertible preferred stock.During 2011, Didde declared and paid $100,000 cash dividends on the common stock and $80,000 on the preferred stock. N et income for the year ended December 31, 2011 was $620,000. What should be Didde's 2011 earnings per common share? a. $2. 07 b. $1. 80 c. $1. 73 d. $1. 47 6. At December 31, 2011 and 2010, Miley Corp. had 180,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2011 or 2010. Net income for 2011 was $400,000. For 2011, earnings per common share amounted to a. $2. 22. b. $1. 94. c. 1. 67. d. $1. 11. 7. Marsh Co. had 2,400,000 shares of common stock outstanding on January 1 and December 31, 2011. In connection with the acquisition of a subsidiary company in June 2010, Marsh is required to issue 100,000 additional shares of its common stock on July 1, 2012, to the former owners of the subsidiary. Marsh paid $200,000 in preferred stock dividends in 2011, and reported net income of $3,400,000 for the year. Marsh's diluted earnings per share for 2011 should be a. $1. 42. b. $1. 36. c. $1. 33. d. $1. 28. 8. Foyle, Inc. , had 560,000 shares of common stock issued and outstanding at December 31, 2010.On July 1, 2011, an additional 40,000 shares of common stock were issued for cash. Foyle also had unexercised stock options to purchase 32,000 shares of common stock at $15 per share outstanding at the beginning and end of 2011. The average market price of Foyle's common stock was $20 during 2011. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2011? a. 580,000 b. 588,000 c. 608,000 d. 612,000 9. When computing diluted earnings per share, convertible securities are a. ignored. b. recognized only if they are dilutive. c. recognized only if they are antidilutive. . recognized whether they are dilutive or antidilutive. 10. In determining diluted earnings per share, dividends on nonconvertible cumulative preferred stock should be a. disregarded. b. added back to net income whether de clared or not. c. deducted from net income only if declared. d. deducted from net income whether declared or not. 11. The if-converted method of computing earnings per share data assumes conversion of convertible securities as of the a. beginning of the earliest period reported (or at time of issuance, if later). b. beginning of the earliest period reported (regardless of time of issuance). c. iddle of the earliest period reported (regardless of time of issuance). d. ending of the earliest period reported (regardless of time of issuance). Multiple Choice Answers—Earnings Per Share—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 5. | b| 6. | b| 7. | d| 8. | b| 9. | b| 10. | d| 11. | a| No. AnswerDerivation 5. b$620,000 – $80,000 ————————— = $1. 80. 300,000 6. b $400,000 – (10,000 ? $100 ? .05) ————— Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€ = $1. 94. 180,000 7. d $3,400,000 – $200,000 ——————————– = $1. 28. 2,400,000 + 100,000 8. b560,000 + (40,000 ? 6/12) + [32,000 – (32,000 ? 15 ? $20)] = 588,000. 9. bConceptual. 10. dConceptual. 11. aConceptual. Chapter 17 – Investments 1. On October 1, 2010, Wenn Co. purchased 600 of the $1,000 face value, 8% bonds of Loy, Inc. , for $702,000, including accrued interest of $12,000. The bonds, which mature on January 1, 2017, pay interest semiannually on January 1 and July 1. Wenn used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Wenn's December 31, 2011 balance sheet, the carrying value of the bonds is a. $690,000. b. $684,000. c. $681,600. d. $672,000. 2. Valet Corp. egan operations in 2010. An analysis of Valet’s equity securities portfolio acquir ed in 2010 shows the following totals at December 31, 2010 for trading and available-for-sale securities: TradingAvailable-for-Sale SecuritiesSecurities Aggregate cost$90,000$110,000 Aggregate fair value65,00095,000 What amount should Valet report in its 2010 income statement for unrealized holding loss? a. $40,000. b. $10,000. c. $15,000. d. $25,000. 3. At December 31, 2010, Jeter Corp. had the following equity securities that were purchased during 2010, its first year of operation: FairUnrealized Cost ValueGain (Loss)Trading Securities: SecurityA$ 90,000$ 60,000$(30,000) B 15,000 20,000 5,000 Totals$105,000$ 80,000$(25,000) Available-for-Sale Securities: SecurityY$ 70,000$ 80,000$ 10,000 Z 85,000 55,000 (30,000) Totals$155,000$135,000$(20,000) All market declines are considered temporary. Fair value adjustments at December 31, 2010 should be established with a corresponding charge against IncomeStockholders’ Equity a. $45,000$ 0 b. $30,000$30,000 c. $25,000$20,000 d. $25,00 0$ 0 4. On December 29, 2011, James Co. sold an equity security that had been purchased on January 4, 2010.James owned no other equity securities. An unrealized holding loss was reported in the 2010 income statement. A realized gain was reported in the 2011 income statement. Was the equity security classified as available-for-sale and did its 2010 market price decline exceed its 2011 market price recovery? 2010 Market Price Decline Exceeded 2011 Available-for-SaleMarket Price Recovery a. YesYes b. YesNo c. NoYes d. NoNo Use the following information for questions 5 through 7. Rich, Inc. acquired 30% of Doane Corp. ‘s voting stock on January 1, 2010 for $400,000. During 2010, Doane earned $160,000 and paid dividends of $100,000.Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2011, Doane earned $200,000 and paid dividends of $60,000 on April 1 and $60,000 on October 1. On July 1, 2011, Ri ch sold half of its stock in Doane for $264,000 cash. 5. Before income taxes, what amount should Rich include in its 2010 income statement as a result of the investment? a. $160,000. b. $100,000. c. $48,000. d. $30,000. 6. The carrying amount of this investment in Rich's December 31, 2010 balance sheet should be a. $400,000. b. $418,000. c. $448,000. d. $460,000. . What should be the gain on sale of this investment in Rich's 2011 income statement? a. $64,000. b. $55,000. c. $49,000. d. $40,000. 8. On January 1, 2010, Reston Co. purchased 25% of Ace Corp. ‘s common stock; no goodwill resulted from the purchase. Reston appropriately carries this investment at equity and the balance in Reston’s investment account was $720,000 at December 31, 2010. Ace reported net income of $450,000 for the year ended December 31, 2010, and paid common stock dividends totaling $180,000 during 2010. How much did Reston pay for its 25% interest in Ace? a. $652,500. b. $765,000. c. $787,500. d. 877,500. 9. On December 31, 2010, Patel Co. purchased equity securities as trading securities. Pertinent data are as follows: Fair Value Security CostAt 12/31/11 A$132,000$117,000 B168,000186,000 C288,000258,000 On December 31, 2011, Patel transferred its investment in security C from trading to available-for-sale because Patel intends to retain security C as a long-term investment. What total amount of gain or loss on its securities should be included in Patel's income statement for the year ended December 31, 2011? a. $3,000 gain. b. $27,000 loss. c. $30,000 loss. d. $45,000 loss. Multiple Choice Answers—CPA AdaptedItem| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | d| 3. | c| 5. | c| 7. | c| 9. | b| 2. | d| 4. | d| 6. | b| 8. | a| | | No. AnswerDerivation 1. d$702,000 – $12,000 = $690,000 15 $690,000 – ($90,000 ? — ) = $672,000. 75 2. d$90,000 – $65,000 = $25,000. 3. c 4. dConceptual. 5. c$160,000 ? 30% = $48,000. 6. b$400,0 00 + $48,000 – ($100,000 ? 30%) = $418,000. 7. c$418,000 – ($60,000 ? 30%) + ($200,000 ? 50% ? 30%) = $430,000. $264,000 – ($430,000 ? 2) = $49,000. 8. a$720,000 – ($450,000 ? 25%) + ($180,000 ? 25%) = $652,500. 9. b$18,000 – $15,000 – $30,000 = $27,000 loss. Chapter 18 – Revenue Recognition . According to the FASB's conceptual framework, the process of reporting an item in the financial statements of an entity is a. recognition. b. realization. c. allocation. d. matching. 2. Green Construction Co. has consistently used the percentage-of-completion method of recognizing revenue. During 2010, Green entered into a fixed-price contract to construct an office building for $12,000,000. Information relating to the contract is as follows: At December 31 2010 2011 Percentage of completion15%45% Estimated total cost at completion$9,000,000$9,600,000 Gross profit recognized (cumulative)600,0001,440,000Contract costs incurred during 2011 were: a . $2,880,000. b. $2,970,000. c. $3,150,000. d. $4,320,000. 3. Bruner Constructors, Inc. has consistently used the percentage-of-completion method of recognizing income. In 2010, Bruner started work on a $35,000,000 construction contract that was completed in 2011. The following information was taken from Bruner's 2010 accounting records: Progress billings$11,000,000 Costs incurred10,500,000 Collections7,000,000 Estimated costs to complete21,000,000 What amount of gross profit should Bruner have recognized in 2010 on this contract? a. $3,500,000 b. 2,333,334 c. $1,750,000 d. $1,166,667 4. During 2010, Gates Corp. started a construction job with a total contract price of $3,500,000. The job was completed on December 15, 2011. Additional data are as follows: 2010 2011 Actual costs incurred$1,350,000$1,525,000 Estimated remaining costs1,350,000— Billed to customer1,200,0002,300,000 Received from customer1,000,0002,400,000 Under the completed-contract method, what amount should Ga tes recognize as gross profit for 2011? a. $225,000 b. $312,500 c. $475,000 d. $625,000 5. Hogan Farms produced 800,000 pounds of cotton during the 2010 season.Hogan sells all of its cotton to Ott Co. , which has agreed to purchase Hogan's entire production at the prevailing market price. Recent legislation assures that the market price will not fall below $. 70 per pound during the next two years. Hogan's costs of selling and distributing the cotton are immaterial and can be reasonably estimated. Hogan reports its inventory at expected exit value. During 2010, Hogan sold and delivered to Ott 600,000 pounds at the market price of $. 70. Hogan sold the remaining 200,000 pounds during 2011 at the market price of $. 72. What amount of revenue should Hogan recognize in 2010? . $420,000 b. $432,000 c. $560,000 d. $576,000 6. Braun, Inc. appropriately uses the installment-sales method of accounting to recognize income in its financial statements. Some pertinent data relating to this metho d of accounting include: 2010 2011 Installment sales$750,000$720,000 Cost of installment sales 570,000 504,000 Gross profit$180,000$216,000 Rate of gross profit24%30% Balance of deferred gross profit at year end: 2010$108,000$ 36,000 2011 198,000 Total$108,000$234,000 What amount of installment accounts receivable should be presented in Braun's December 31, 2011 balance sheet? a. 720,000 b. $810,000 c. $780,000 d. $866,666 7. Hartz Co. , which began operations on January 1, 2010, appropriately uses the installment-sales method of accounting. The following information pertains to Hartz's operations for the year 2010: Installment sales$1,200,000 Regular sales480,000 Cost of installment sales720,000 Cost of regular sales288,000 General and administrative expenses96,000 Collections on installment sales288,000 The deferred gross profit account in Hartz's December 31, 2010 balance sheet should be a. $115,200. b. $192,000. c. $364,800. d. $480,000. 8. On January 1, 2010, Orton Co. old a us ed machine to King, Inc. for $350,000. On this date, the machine had a depreciated cost of $245,000. King paid $50,000 cash on January 1, 2010 and signed a $300,000 note bearing interest at 10%. The note was payable in three annual installments of $100,000 beginning January 1, 2011. Orton appropriately accounted for the sale under the installment method. King made a timely payment of the first installment on January 1, 2011 of $130,000, which included interest of $30,000 to date of payment. At December 31, 2011, Orton has deferred gross profit of a. $70,000. b. $66,000. c. $60,000. d. 51,000. 9. Piper Co. began operations on January 1, 2010 and appropriately uses the installment method of accounting. The following information pertains to Piper's operations for 2010: Installment sales1,800,000 Cost of installment sales1,080,000 General and administrative expenses180,000 Collections on installment sales825,000 The balance in the deferred gross profit account at December 31, 2010 shoul d be a. $330,000. b. $495,000. c. $390,000. d. $720,000. 10. Moon Co. records all sales using the installment method of accounting. Installment sales contracts call for 36 equal monthly cash payments.According to the FASB's conceptual framework, the amount of deferred gross profit relating to collections 12 months beyond the balance sheet date should be reported in the a. current liabilities section as a deferred revenue. b. noncurrent liabilities section as a deferred revenue. c. current assets section as a contra account. d. noncurrent assets section as a contra account. 11. Crane, Inc. is a retailer of home appliances and offers a service contract on each appliance sold. Crane sells appliances on installment contracts, but all service contracts must be paid in full at the time of sale.Collections received for service contracts should be recorded as an increase in a a. deferred revenue account. b. sales contracts receivable valuation account. c. stockholders' valuation account. d. service revenue account. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | d| 5. | c| 7. | c| 9. | c| 11. | a| 2. | b| 4. | d| 6. | b| 8. | c| 10. | c| | | No. AnswerDerivation 1. aConceptual. 2. b($9,600,000 45%) – ($9,000,000 15%) = $2,970,000. $10,500,000 3. d—————— ($35,000,000 – $31,500,000) = $1,166,667. $31,500,000 . d$3,500,000 – $1,350,000 – $1,525,000 = $625,000. 5. c800,000 lbs. $. 70 = $560,000. 6. b($36,000 ? 24%) + ($198,000 ? 30%) = $810,000. 7. c$1,200,000 – $720,000 = $480,000 gross profit (40% gross profit rate) $480,000 – ($288,000 . 4) = $364,800. 8. c$300,000 + $50,000 = $350,000 $350,000 – $245,000 = $105,000 gross profit (30% gross profit rate) ($300,000 – $100,000) ? 30% = $60,000. 9. c$1,800,000 – $1,080,000 = $720,000 (40% gross profit rate)$720,000 – ($825,00 0 40%) = $390,000. 10. cConceptual. 11. aConceptual. Chapter 20 Accounting for Pensions ; Post Retirement Benefits 1.The following information pertains to Hopson Co. ‘s pension plan: Actuarial estimate of projected benefit obligation at 1/1/11$72,000 Assumed discount rate10% Service costs for 2011$18,000 Pension benefits paid during 2011$15,000 If no change in actuarial estimates occurred during 2011, Hopson's projected benefit obligation at December 31, 2011 was a. $64,200. b. $75,000. c. $79,200. d. $82,200. 2. Interest cost included in pension expense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the a. shortage between the expected and actual returns on plan assets. b. ncrease in the projected benefit obligation due to the passage of time. c. increase in the fair value of plan assets due to the passage of time. d. amortization of the discount on accumulated OCI (PSC). 3. Logan Corp. , a company whose stock is publicly traded, provides a noncontributory defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2011: Projected benefit obligation$600,000 Accumulated benefit obligation525,000 Fair value of plan assets825,000 Service cost240,000 Interest on projected benefit obligation24,000Amortization of prior service cost60,000 Expected and actual return on plan assets82,500 The market-related asset value equals the fair value of plan assets. No contributions have been made for 2011 pension cost. In its December 31, 2011 balance sheet, Logan should report a pension asset / liability of a. Pension liability of $600,000 b. Pension asset of $824,000 c. Pension asset of $225,000 d. Pension liability of $525,000 4. Seigel Co. maintains a defined-benefit pension plan for its employees. At each balance sheet date, Yeager should report a pension asset / liability equal to the a. ccumulated benefit obligation. b. projected benefit ob ligation. c. accumulated benefit obligation. d. funded status relative to the projected benefit obligation. 5. Ohlman, Inc. maintains a defined-benefit pension plan for its employees. As of December 31, 2011, the market value of the plan assets is less than the accumulated benefit obligation. The projected benefit obligation exceeds the accumulated benefit obligation. In its balance sheet as of December 31, 2011, Ohlman should report a liability in the amount of the a. excess of the projected benefit obligation over the fair value of the plan assets. b. xcess of the accumulated benefit obligation over the fair value of the plan assets. c. projected benefit obligation. d. accumulated benefit obligation. 6. At December 31, 2011, the following information was provided by the Vargas Corp. pension plan administrator: Fair value of plan assets$4,500,000 Accumulated benefit obligation5,580,000 Projected benefit obligation7,200,000 What is the amount of the pension liability that should be shown on Vargas' December 31, 2011 balance sheet? a. $7,200,000 b. $2,700,000 c. $1,620,000 d. $1,080,000 Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | 1. d| 3. | c| 5. | a| 2. | b| 4. | d| 6. | b| No. AnswerDerivation 1. d$72,000 + $18,000 + ($72,000 ? .10) – $15,000 = $82,200. 2. bConceptual. 3. c$825,000 – $600,000 = $225,000. 4. dConceptual. 5. aConceptual. 6. b$7,200,000 – $4,500,000 = $2,700,000. Chapter 21 –Accounting for Leases 1. Lease A does not contain a bargain purchase option, but the lease term is equal to 90 percent of the estimated economic life of the leased property. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property.How should the lessee classify these leases? Lease A Lease B a. Operating leaseCapital lease b. Operating leaseOperating lease c. Capital leaseCapita l lease d. Capital leaseOperating lease 2. On December 31, 2011, Burton, Inc. leased machinery with a fair value of $840,000 from Cey Rentals Co. The agreement is a six-year noncancelable lease requiring annual payments of $160,000 beginning December 31, 2011. The lease is appropriately accounted for by Burton as a capital lease. Burton's incremental borrowing rate is 11%. Burton knows the interest rate implicit in the lease payments is 10%.The present value of an annuity due of 1 for 6 years at 10% is 4. 7908. The present value of an annuity due of 1 for 6 years at 11% is 4. 6959. In its December 31, 2011 balance sheet, Burton should report a lease liability of a. $606,528. b. $680,000. c. $751,344. d. $766,528. 3. On December 31, 2010, Harris Co. leased a machine from Catt, Inc. for a five-year period. Equal annual payments under the lease are $630,000 (including $30,000 annual executory costs) and are due on December 31 of each year. The first payment was made on December 31, 201 0, and the second payment was made on December 31, 2011.The five lease payments are discounted at 10% over the lease term. The present value of minimum lease payments at the inception of the lease and before the first annual payment was $2,502,000. The lease is appropriately accounted for as a capital lease by Harris. In its December 31, 2011 balance sheet, Harris should report a lease liability of a. $1,902,000. b. $1,872,000. c. $1,711,800. d. $1,492,200. 4. A lessee had a ten-year capital lease requiring equal annual payments. The reduction of the lease liability in year 2 should equal a. the current liability shown for the lease at the end of year 1. . the current liability shown for the lease at the end of year 2. c. the reduction of the lease liability in year 1. d. one-tenth of the original lease liability. Use the following information for questions 5 and 6. On January 2, 2011, Hernandez, Inc. signed a ten-year noncancelable lease for a heavy duty drill press. The lease stip ulated annual payments of $150,000 starting at the end of the first year, with title passing to Hernandez at the expiration of the lease. Hernandez treated this transaction as a capital lease. The drill press has an estimated useful life of 15 years, with no salvage value.Hernandez uses straight-line depreciation for all of its plant assets. Aggregate lease payments were determined to have a present value of $900,000, based on implicit interest of 10%. 5. In its 2011 income statement, what amount of interest expense should Hernandez report from this lease transaction? a. $0 b. $56,250 c. $75,000 d. $90,000 6. In its 2011 income statement, what amount of depreciation expense should Hernandez report from this lease transaction? a. $150,000 b. $100,000 c. $90,000 d. $60,000 7. In a lease that is recorded as a sales-type lease by the lessor, interest revenue a. hould be recognized in full as revenue at the lease's inception. b. should be recognized over the period of the lease using the straight-line method. c. should be recognized over the period of the lease using the effective interest method. d. does not arise. 8. Torrey Co. manufactures equipment that is sold or leased. On December 31, 2011, Torrey leased equipment to Dalton for a five-year period ending December 31, 2016, at which date ownership of the leased asset will be transferred to Dalton. Equal payments under the lease are $220,000 (including $20,000 executory costs) and are due on December 31 of each year.The first payment was made on December 31, 2011. Collectibility of the remaining lease payments is reasonably assured, and Torrey has no material cost uncertainties. The normal sales price of the equipment is $770,000, and cost is $600,000. For the year ended December 31, 2011, what amount of income should Torrey realize from the lease transaction? a. $170,000 b. $220,000 c. $230,000 d. $330,000 *9. Jamar Co. sold its headquarters building at a gain, and simultaneously leased back the building. The lease was reported as a capital lease. At the time of the sale, the gain should be reported as a. perating income. b. an extraordinary item, net of income tax. c. a separate component of stockholders' equity. d. a deferred gain. *10. On December 31, 2011, Haden Corp. sold a machine to Ryan and simultaneously leased it back for one year. Pertinent information at this date follows: Sales price$900,000 Carrying amount825,000 Present value of reasonable lease rentals ($7,500 for 12 months @ 12%)85,000 Estimated remaining useful life12 years In Haden’s December 31, 2011 balance sheet, the deferred profit from the sale of this machine should be a. $85,000. b. $75,000. c. $10,000. . $0. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | c| 3. | d| 5. | d| 7. | c| *9. | d| 2. | a| 4. | a| 6. | d| 8. | a| *10| d| No. AnswerDerivation 1. cConceptual. 2. a($160,000 ? 4. 7908) – $160,000 = $606,528. 3. d$2,502,000 †“ $630,000 + $30,000 = $1,902,000 (2010). $1,902,000 – [$600,000 – ($1,902,000 ? .10)] = $1,492,200 (2011). 4. aConceptual. 5. d$900,000 ? .10 = $90,000. 6. d$900,000 ? 15 = $60,000. 7. cConceptual. 8. a$770,000 – $600,000 = $170,000. *9. dConceptual. *10. d = 9. 44%, < 10% of FV of asset ? t is a minor leaseback. Chapter 22-Accounting Changes and Error Analysis 1. Which of the following should be reported as a prior period adjustment? Change inChange from Estimated LivesUnaccepted Principle of Depreciable Assetsto Accepted Principle a. YesYes b. NoYes c. YesNo d. NoNo 2. On December 31, 2011, Grantham, Inc. appropriately changed its inventory valuation method to FIFO cost from weighted-average cost for financial statement and income tax purposes. The change will result in a $1,500,000 increase in the beginning inventory at January 1, 2011. Assume a 30% income tax rate.The cumulative effect of this accounting change on beginning retained earnings is a. $0. b. $450,000. c. $1,050,000. d. $1,500,000. 3. On January 1, 2011, Frost Corp. changed its inventory method to FIFO from LIFO for both financial and income tax reporting purposes. The change resulted in an $800,000 increase in the January 1, 2011 inventory. Assume that the income tax rate for all years is 30%. The cumulative effect of the accounting change should be reported by Frost in its 2011 a. retained earnings statement as a $560,000 addition to the beginning balance. b. ncome statement as a $560,000 cumulative effect of accounting change. c. retained earnings statement as an $800,000 addition to the beginning balance. d. income statement as an $800,000 cumulative effect of accounting change. 4. On January 1, 2008, Lake Co. purchased a machine for $792,000 and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value. On January 1, 2011, Lake determined that the machine had a useful life of six years from the date of acquisition and will have a salvage value of $72,000. An accounting change was made in 2011 to reflect these additional data.The accumulated depreciation for this machine should have a balance at December 31, 2011 of a. $438,000. b. $462,000. c. $480,000. d. $528,000. 5. On January 1, 2008, Hess Co. purchased a patent for $595,000. The patent is being amortized over its remaining legal life of 15 years expiring on January 1, 2023. During 2011, Hess determined that the economic benefits of the patent would not last longer than ten years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2011? a. $357,000 b. $408,000 c. $420,000 . $436,375 6. During 2010, a textbook written by Mercer Co. personnel was sold to Roark Publishing, Inc. , for royalties of 10% on sales. Royalties are receivable semiannually on March 31, for sales in July through December of the prior year, and on September 30, for sales in January through June of the same year. * Royalty income of $108,000 was accrued at 12/31/10 for the period July-December 2010. * Royalty income of $120,000 was received on 3/31/11, and $156,000 on 9/30/11. * Mercer learned from Roark that sales subject to royalty were estimated at $1,620,000 for the last half of 2011.In its income statement for 2011, Mercer should report royalty income at a. $276,000. b. $288,000. c. $318,000. d. $330,000. 7. On January 1, 2010, Janik Corp. acquired a machine at a cost of $500,000. It is to be depreciated on the straight-line method over a five-year period with no residual value. Because of a bookkeeping error, no depreciation was recognized in Janik's 2010 financial statements. The oversight was discovered during the preparation of Janik's 2011 financial statements. Depreciation expense on this machine for 2011 should be a. $0. b. $100,000. c. $125,000. d. $200,000. 8.On December 31, 2011, special insurance costs, incurred but unpaid, were not reco rded. If these insurance costs were related to work in process, what is the effect of the omission on accrued liabilities and retained earnings in the December 31, 2011 balance sheet? Accrued LiabilitiesRetained Earnings a. No effectNo effect b. No effectOverstated c. UnderstatedNo effect d. UnderstatedOverstated 9. Black, Inc. is a calendar-year corporation whose financial statements for 2010 and 2011 included errors as follows: YearEnding InventoryDepreciation Expense 2010$162,000overstated$135,000overstated 201154,000understated45,000understatedAssume that purchases were recorded correctly and that no correcting entries were made at December 31, 2010, or at December 31, 2011. Ignoring income taxes, by how much should Black's retained earnings be retroactively adjusted at January 1, 2012? a. $144,000 increase b. $36,000 increase c. $18,000 decrease d. $9,000 increase Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | b| 3. | a| 5. | b| 7. | b| 9. | a| 2. | c| 4. | a| 6. | d| 8. | c| | | No. AnswerDerivation 1. bConceptual. 2. c$1,500,000 ? (1 – . 3) = $1,050,000. 3. a$800,000 ? (1 – . ) = $560,000. 4. a$792,000 ? 3/8 = $297,000 $297,000 + [($792,000 – $297,000 – $72,000) ? 1/3] = $438,000. 5. b$595,000 ? 3/15 = $119,000 $595,000 – $119,000 – [($595,000 – $119,000) ? 1/7] = $408,000. 6. d($120,000 – $108,000) + $156,000 + ($1,620,000 ? .10) = $330,000. 7. b$500,000 ? 5 = $100,000. 8. cConceptual. 9. a$54,000 (u) + $135,000 (u) – $45,000 (o) = $144,000 (u). Chapter 23- Statement of Cash Flows Use the following information for questions 1 and 2. A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. . In a statement of cash flows, what amount is included in investing activities for the above transaction? a. Cash payment b. Acquisition price c. Zero d . Mortgage amount 2. In a statement of cash flows, what amount is included in financing activities for the above transaction? a. Cash payment b. Acquisition price c. Zero d. Mortgage amount Use the following information for questions 3 and 4. Smiley Corp. ‘s transactions for the year ended December 31, 2011 included the following: * Purchased real estate for $550,000 cash which was borrowed from a bank. Sold available-for-sale securities for $500,000. * Paid dividends of $600,000. * Issued 500 shares of common stock for $250,000. * Purchased machinery and equipment for $125,000 cash. * Paid $450,000 toward a bank loan. * Reduced accounts receivable by $100,000. * Increased accounts payable $200,000. 3. Smiley's net cash used in investing activities for 2011 was a. $675,000. b. $375,000. c. $175,000. d. $50,000. 4. Smiley's net cash used in financing activities for 2011 was a. $50,000. b. $250,000. c. $450,000. d. $500,000. Use the following information for questions 5 and 6. P eavy Corp. s transactions for the year ended December 31, 2011 included the following: 0 Acquired 50% of Gant Corp. ‘s common stock for $180,000 cash which was borrowed from a bank. 1 Issued 5,000 shares of its preferred stock for land having a fair value of $320,000. 2 Issued 500 of its 11% debenture bonds, due 2016, for $392,000 cash. 3 Purchased a patent for $220,000 cash. 4 Paid $120,000 toward a bank loan. 5 Sold available-for-sale securities for $796,000. 6 Had a net increase in returnable customer deposits (long-term) of $88,000. 5. Peavy’s net cash provided by investing activities for 2011 was a. $296,000. b. 396,000. c. $476,000. d. $616,000. 6. Peavy’s net cash provided by financing activities for 2011 was a. $452,000. b. $540,000. c. $572,000. d. $660,000. Use the following information for questions 7 through 9. Jamison Corp. ‘s balance sheet accounts as of December 31, 2011 and 2010 and information relating to 2011 activities are presented below . December 31, 2011 2010 Assets Cash$ 440,000$ 200,000 Short-term investments600,000— Accounts receivable (net)1,020,0001,020,000 Inventory1,380,0001,200,000 Long-term investments400,000600,000 Plant assets3,400,0002,000,000 Accumulated depreciation(900,000)(900,000)Patent 180,000 200,000 Total assets$6,520,000$4,320,000 Liabilities and Stockholders' Equity Accounts payable and accrued liabilities$1,660,000$1,440,000 Notes payable (nontrade)580,000— Common stock, $10 par1,600,0001,400,000 Additional paid-in capital800,000500,000 Retained earnings 1,880,000 980,000 Total liabilities and stockholders' equity$6,520,000$4,320,000 Information relating to 2011 activities: 7 Net income for 2011 was $1,500,000. 8 Cash dividends of $600,000 were declared and paid in 2011. 9 Equipment costing $1,000,000 and having a carrying amount of $320,000 was sold in 2011 for $360,000. 0 A long-term investment was sold in 2011 for $320,000. There were no other transactions affecting long-te rm investments in 2011. 11 20,000 shares of common stock were issued in 2011 for $25 a share. 12 Short-term investments consist of treasury bills maturing on 6/30/12. 7. Net cash provided by Jamison’s 2011 operating activities was a. $1,500,000. b. $2,120,000. c. $2,080,000. d. $2,160,000. 8. Net cash used in Jamison’s 2011 investing activities was a. $2,320,000. b. $1,820,000. c. $1,680,000. d. $1,720,000. 9. Net cash provided by Jamison’s 2011 financing activities was a. 480,000. b. $520,000. c. $1,080,000. d. $1,680,000. 10. Foxx Corp. ‘s comparative balance sheet at December 31, 2011 and 2010 reported accumulated depreciation balances of $800,000 and $600,000, respectively. Property with a cost of $50,000 and a carrying amount of $38,000 was the only property sold in 2011. Depreciation charged to operations in 2011 was a. $188,000. b. $200,000. c. $212,000. d. $224,000. 11. Nagel Co. ‘s prepaid insurance was $90,000 at December 31, 2011 and $45,0 00 at December 31, 2010. Insurance expense was $36,000 for 2011 and $27,000 for 2010.What amount of cash disbursements for insurance would be reported in Nagel's 2011 net cash provided by operating activities presented on a direct basis? a. $99,000. b. $81,000. c. $54,000. d. $36,000. Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | a| 3. | c| 5. | b| 7. | c| 9. | a| 11. | b| 2. | c| 4. | b| 6. | b| 8. | a| 10. | c| | | No. AnswerDerivation 1. aConceptual. 2. cConceptual. 3. c($550,000) + $500,000 – $125,000 = ($175,000). 4. b$550,000 – $600,000 + $250,000 – $450,000 = ($250,000). 5. b($180,000) – $220,000 + $796,000 = $396,000. 6. $180,000 + $392,000 – $120,000 + $88,000 = $540,000. 7. c$1,500,000 – $180,000 + ($900,000 – $900,000 + $680,000) – ($360,000 – $320,000) + $20,000 + $220,000 – ($320,000 – $200,000) = $2,080,000. 8. a$3 20,000 + $360,000 – ($3,400,000 + $1,000,000 – $2,000,000) – $600,000 = $2,320,000. 9. a20,000 ? $25 = $500,000 $500,000 + $580,000 – $600,000 = $480,000. 10. c$800,000 – $600,000 + ($50,000 – $38,000) = $212,000. 11. b$90,000 + $36,000 – $45,000 = $81,000. Chapter 24- Full Disclosure in Financial Reporting 1. Which of the following facts concerning plant assets should be included in the summary of significant accounting policies?Depreciation MethodComposition a. NoYes b. YesYes c. YesNo d. NoNo 2. Farr, Inc. is a multidivisional corporation which has both intersegment sales and sales to unaffiliated customers. Farr should report segment financial information for each division meeting which of the following criteria? a. Segment profit or loss is 10% or more of consolidated profit or loss. b. Segment profit or loss is 10% or more of combined profit or loss of all company segments. c. Segment revenue is 10% or more of combined revenue o f all the company segments. d. Segment revenue is 10% or more of consolidated revenue. 3. Unruh Corp. nd its divisions are engaged solely in manufacturing operations. The following data (consistent with prior years' data) pertain to the industries in which operations were conducted for the year ended December 31, 2011. Assets Industry Revenue Profit 12/31/11 A$ 8,000,000$1,320,000$16,000,000 B6,400,0001,120,00014,000,000 C4,800,000960,00010,000,000 D2,400,000440,0005,200,000 E3,400,000540,0005,600,000 F 1,200,000 180,000 2,400,000 $26,200,000$4,560,000$53,200,000 In its segment information for 2011, how many reportable segments does Unruh have? a. Three b. Four c. Five d. Six 4.The following information pertains to Nixon Corp. and its divisions for the year ended December 31, 2011. Sales to unaffiliated customers$2,500,000 Intersegment sales of products similar to those sold to unaffiliated customers750,000 Interest earned on loans to other operating segments50,000 Nixon and all of its divisions are engaged solely in manufacturing operations. Nixon has a reportable segment if that segment's revenue exceeds a. $330,000. b. $325,000. c. $255,000. d. $250,000. 5. Advertising costs may be accrued or deferred to provide an appropriate expense in each period for InterimYear-end Financial ReportingFinancial Reporting . YesNo b. YesYes c. NoNo d. NoYes 6. Mayo Corp. has estimated that total depreciation expense for the year ending December 31, 2011 will amount to $300,000, and that 2011 year-end bonuses to employees will total $600,000. In Mayo's interim income statement for the six months ended June 30, 2011, what is the total amount of expense relating to these two items that should be reported? a. $0. b. $150,000. c. $450,000. d. $900,000. 7. Fina Corp. had the following transactions during the quarter ended March 31, 2011: Loss from hurricane damage$350,000 Payment of fire insurance premium for calendar year 2011500,000What amount should be included in Fina's inco me statement for the quarter ended March 31, 2011? Extraordinary LossInsurance Expense a. $350,000$500,000 b. $350,000$125,000 c. $87,500$125,000 d. $0$500,000 8. For interim financial reporting, an extraordinary gain occurring in the second quarter should be a. recognized ratably over the last three quarters. b. recognized ratably over all four quarters with the first quarter being restated. c. recognized in the second quarter. d. disclosed by note only in the second quarter. *9. How is the average inventory used in the calculation of each of the following?Acid-Test (Quick) RatioInventory Turnover Ratio a. NumeratorNumerator b. NumeratorDenominator c. Not UsedDenominator d. Not UsedNumerator *10. Which of the following ratios is(are) useful in assessing a company's ability to meet current maturing or short-term obligations? Acid-Test RatioDebt to Total Assets Ratio a. NoNo b. NoYes c. YesYes d. YesNo *11. Which of the following ratios should be used in evaluating the effectiveness with which the company uses its assets? Receivables TurnoverPayout Ratio a. YesYes b. NoNo c. YesNo d. NoYes Multiple Choice Answers—CPA Adapted Item| Ans. | Item| Ans. Item| Ans. | Item| Ans. | Item| Ans. | Item| Ans. | 1. | c| 3. | b| 5. | b| 7. | b| *9. | c| *11. | c| 2. | c| 4. | b| 6. | c| 8. | c| *10. | d| | | No. AnswerDerivation 1. cConceptual. 2. cConceptual. 3. bRevenue test: $26,200,000 ? 10% = $2,620,000 Profit test: $4,560,000 ? 10% = $456,000 Asset test: $53,200,000 ? 10% = $5,320,000 A, B, C, E. 4. b($2,500,000 + $750,000) ? 10% = $325,000. 5. bConceptual. 6. c($300,000 + $600,000) ? 2 = $450,000. 7. bExtraordinary loss = $350,000 Insurance expense = $500,000 ? 4 = $125,000. 8. cConceptual. *9. cConceptual. *10. dConceptual. *11. cConceptual.