Suppose an accounting intern mistakenly calculated depreciation expense on the Land account. She assigned it a 50-year life and a residual value of $10,000,000. Using the cost of the land (assume it was $811,000,000 ) and the straight-line method of depreciation, discuss the dollar effect of this error on pretax earnings and total assets
The depreciable amount would be the $811,000,000 cost less the estimated $10,000,000 residual value, or $801,000,000. Depreciating this amount over fifty years would calculate to $16,020,000 of depreciation expense per year. The pretax earnings and the total assets would be understated by this significant amount.
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The cost of workers' compensation insurance for the employer does not depend on
a. the number of employees; b. the riskiness of the jobs the employees perform; c. the company's accident history; d. the amount of FICA, FUTA, and SUTA taxes due; e. any of these.
All of the following are relevant in a sell or process-further decision except
a. sales value at the split-off point. b. sales value after further processing. c. additional processing costs. d. joint costs.
In a short essay, list and discuss the three potential conflicts of interest that can take place during the auditing process.
What will be an ideal response?
When preparing a business message, you should make your writing audience oriented. Audience oriented means you should A) write to solve a problem or convey information
B) attempt to get your audience to believe and accept your message. C) present ideas clearly but concisely. D) concentrate on looking at the problem from the receiver's perspective.