Bing's Export Co purchased a new delivery truck at the beginning of 2015 . The truck has a cost of $37,000, an estimated life of 5 years, and an estimated residual value of $7,000 . A full year's depreciation expense is to be recorded in 2015 . The truck was driven 20,000 miles during 2015 and 24,000 miles during 2016 . The number of expected miles over five years is 100,000. Refer to information
for Bing's Export Co Bing's is comparing the straightline and doubledecliningbalance depreciation methods. Of these two methods, which method creates the larger expense and larger tax savings in 2015?
a. Straight-line depreciation creates the larger expense, while double-declining-balance depreciation creates the larger tax savings.
b. Straight-line depreciation creates both the larger expense and the larger tax savings.
c. Double-declining-balance depreciation creates both the larger expense and the larger tax savings.
d. Double-declining-balance depreciation creates the larger expense, while straight-line depreciation creates the larger tax savings.
c
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The following information pertains to Dallas Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $ 40,000 Accounts receivable (net) 30,000 Inventory 25,000 Property, plant, and equipment 280,000 Total assets $375,000 Liabilities and Stockholders' Equity Current liabilities $
60,000 Long-term liabilities 95,000 Stockholders' equity—Common 220,000 Total liabilities and stockholders' equity $375,000 Income Statement Sales $90,000 Cost of goods sold 45,000 Gross margin $45,000 Operating expenses 15,000 Net income $30,000 Number of shares of common stock 6,000 Market price of common stock $20 Dividends per share $1.00 Cash provided by operations $40,000 What is the rate earned on stockholders' equity? a. 7.3% b. 13.6% c. 20.5% d. 40.9%
When Jacqueline was hired by Acme Global to be an office cleaner, the human resource management department skipped the background check. Now Jacqueline has pass keys to all the offices in one of Acme Global’s building. What a background check would have revealed is that Jacqueline has several past convictions for assault. This could be a case of __________.
A. compensatory selection B. a negligent hire C. unfitness for duty D. compensatory recruitment E. sustainable selection
Eddie, an accountant for Fresh Dairy, Inc, learns of undisclosed company plans to market a new smooth-tasting, fat-free butter. Eddie buys 10,000 shares of Fresh Dairy stock. He reveals the company plans to Giselle, who buys 5,000 shares. Giselle tells Hong, who tells Irwin, each of whom buy 1,000 shares. They know that Giselle got her information from Eddie. When Fresh Dairy publicly announces
its new product, Eddie, Giselle, Hong, and Irwin sell their stock for a profit.? Under the Securities Exchange Act of 1934, Giselle is most likely A) liable for insider trading. B) not liable because Giselle did not prevent others from profiting. C) not liable because Giselle did not solicit information from Eddie. D) not liable because Giselle does not work for Fresh Dairy.
What are some of the negative effects of increasing the sensitivity of managerial pay to firm performance?
What will be an ideal response?